Vanguard Launches 2060 Target Fund

Vanguard launched the Vanguard Target Retirement 2060 Fund. 

The fund will provide age-appropriate exposure to domestic and international stocks, as well as domestic bonds, for investors who plan to retire and leave the workforce in or within a few years of 2060 or are roughly 18 to 20 years old.

The 2060 Fund invests in underlying broad market Vanguard index funds: Vanguard Total Stock Market Index Fund, Vanguard Total Bond Market II Index Fund and Vanguard Total International Stock Index Fund. The asset allocation of the Target Retirement Funds becomes more conservative as they approach the target date.

The 2060 Fund provides an automatic way to achieve balanced, age-appropriate stock exposure, addressing concerns by some that young people are not investing in the stock market because of its greater risk and are therefore missing out on its potentially higher returns, Vanguard said.