The combination of tax-deferred growth, large contribution limits and the potential for employer-matching contributions have made these plans ideal for those preparing for retirement.
Vanguard's investment products make ideal choices for retirement plans due to its wide array of ultra-low cost index and actively managed mutual funds. It should be no surprise that several Vanguard funds make the list of the most popular fund choices for k investors. Vanguard's entries on the list present an intriguing mix of actively and passively managed funds along with both equity and bond offerings. The Vanguard Institutional Index Fund is the large-plan version of the company's popular Index Fund.
With an expense ratio of just 0. The Vanguard Total Bond Market Index Fund is to the bond market what the Index Fund is to equities. It provides broad exposure to all segments of the bond market, short-term, long-term, corporate and government issues, at a bare minimum expense ratio.
The Vanguard Wellington Fund is the most popular actively managed fund on this list and it has the benefit of sporting a stellar long-term track record. The fund generally maintains an asset allocation of two-thirds equities and one-third fixed income.
This fund, launched in , has achieved Morningstar's highest five-star rating as of Oct. The Vanguard Index Fund is one of the original index mutual funds and remains one of the most popular among investors.
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The Vanguard PRIMECAP Fund is a little different from the other funds on this list. This fund is actually managed by PRIMECAP Management Company, but it is still administered by Vanguard.
The Vanguard PRIMECAP Fund is actively managed, and it is a slightly more aggressive investment choice.
The fund invests primarily in mid- and large-cap stocks with higher growth potential. The smaller company, higher growth nature of the companies in which this fund invests make it a higher-risk choice, as it typically excludes large companies from its portfolio.
Target retirement date funds are investments that are geared towards individuals with specific retirement dates in mind, and they provide broadly diversified portfolios that automatically become more conservative as the target dates draw closer.
These funds have become increasingly popular among investors who don't want to spend a great deal of time managing their savings.
With investors in the Vanguard Target Retirement Fund looking at retirement in roughly 10 years, it maintains an allocation of roughly two-thirds stocks and one-third bonds as of Oct. The Vanguard Windsor II Fund is one of the company's longest-tenured funds, having launched in This fund looks to focus on large- and mid-cap stocks that pay dividends, especially those that the fund's managers feel are undervalued relative to the broad market.
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The 8 Most Popular Vanguard Funds for a k By David Dierking November 24, — Vanguard Institutional Index The Vanguard Institutional Index Fund is the large-plan version of the company's popular Index Fund. Vanguard Total Bond Market Index The Vanguard Total Bond Market Index Fund is to the bond market what the Index Fund is to equities. Vanguard Wellington The Vanguard Wellington Fund is the most popular actively managed fund on this list and it has the benefit of sporting a stellar long-term track record.
Vanguard Index The Vanguard Index Fund is one of the original index mutual funds and remains one of the most popular among investors. Vanguard PRIMECAP The Vanguard PRIMECAP Fund is a little different from the other funds on this list. Vanguard Target Retirement Target retirement date funds are investments that are geared towards individuals with specific retirement dates in mind, and they provide broadly diversified portfolios that automatically become more conservative as the target dates draw closer.
Vanguard Windsor II The Vanguard Windsor II Fund is one of the company's longest-tenured funds, having launched in Discover how the fees and expenses charged by Vanguard's family of mutual funds compares to those of other competing mutual fund families. Read a detailed description about Vanguard Group's stock-based mutual funds, the company philosophy and why the company embraces an indexed strategy.
Learn about target-date retirement funds offered by Vanguard. Discover how portfolio managers automatically rebalance the portfolios for the funds. Discover the top Vanguard target-date retirement funds with target dates in , and , and learn about the characteristics of these funds.
Learn about Vanguard Mutual Funds, including its history, investment management philosophy, client base, mutual fund offerings, leadership and more.
Gain insight into the Vanguard Target Retirement Funds with a look at the fund composition, fees and what to consider in the selection process. Learn about the basics of Vanguard Funds and how their Balanced allocation mutual funds and ETFs differ from other investment managers.
Explore detailed analyses of the Vanguard Total Stock Market and Vanguard Index funds, and learn about their characteristics and suitability.
Learn about the North Carolina College Savings Plan, complete with a summary of the plan and different investment options that are provided by Vanguard. Learn about Vanguard mutual funds and exchange-traded funds ETFs , and how investors can purchase them through multiple Learn about Vanguard exchange-traded funds ETFs and how most of them typically have low expense ratios and pay dividends Discover why index mutual funds are generally less expensive than actively managed funds and learn about three of the lowest-cost An expense ratio is determined through an annual A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies.
A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation.
A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over No thanks, I prefer not making money.
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