Vanguard Target Retirement 2035 Fund (VTTHX)

Vanguard Target Retirement 2035 Fund (VTTHX) is a target date 2031-2035 mutual fund. This balanced fund invests in stocks, bonds, and cash.

Vanguard Target Retirement 2035 Inv (VTTHX)

The Vanguard Target Retirement 2035 fund objective is to provide capital appreciation and current income according to its current asset allocation. The mutual fund mainly invests in other Vanguard mutual funds. It uses an asset allocation strategy designed for investors planning to retire and leave the work force in or within a few years of 2035 (the target year). Its asset allocation will become more conservative over time. This means that the assets allocated to stocks will decrease while the assets allocated to bonds and other fixed income investments will increase.

Fund Details

• Fund Inception Date: Oct 26, 2003
• Ticker Symbol: VTTHX
• CUSIP: 92202E508
• Beta (3yr): 1.48
• Rank in category (YTD): 32%
• Category: Target Date 2031-2035
• Yield: 2.03%
• Capital Gains: 0%
• Expense Ratio: 0.00%
• Net Assets: $ 13.76 billion
• Number of Years Up: 6 years
• Number of Years Down: 2 years
• Average Duration:  5.11 years (bond portion)
• Average Maturity:  7.10 years (bond portion)
• Annual Turnover Rate: 18%

Updated on 12/5/2012

This Vanguard fund has $13.76 billion of total net assets. The annual dividend is 2.03%. It has 4-stars and Gold rating from Morningstar. Duane F. Kelly has managed this fund since its inception in October 2003. The portfolio turnover rate is low, only 18%. This mutual fund is also known as fund of fund. You can buy this mutual fund with $1,000 initial funding.

Best Target Date 2000-2010 Mutual Funds 2012

The fund performance has been good. It recorded 6 years of positive return and only 2 years of negative return since its inception in 2003. For 2012, the year-to-date return is 10.39%. Based on the load adjusted returns, the performance of VTTHX is:

• 1-year: 10.45%
• 3-year: 10.66%
• 5-year: 1.09%
• 10-year:  N/A

The benchmarks are Target Retirement 2035 Composite Index and Dow Jones U.S. Total Stock Market Index. The asset allocation as of August 2012 is Stocks (86.38%), Bonds (13.55%) and Short-term reserves (0.07%). The allocation to underlying funds are Vanguard Total Stock Market Index Fund Investor Shares (60.6%), Vanguard Total International Stock Index Fund Investor Shares (25.8%) and Vanguard Total Bond Market II Index Fund Investor Shares (13.6%).

Best Performer Target Date Mutual Funds 2011

According to the fund prospectus, the primary investment risks are stock market risk, country/ regional risk, currency risk, interest rate risk, income risk, credit risk, call risk, prepayment risk, asset allocation risk, etc.

Disclosure: No Position