Vanguard hopes to begin selling a new target-date fund for those retiring in about 45 years.
The company said June 3 that it is expanding its 11-fund target-date series and has filed a registration statement with the U.S. Securities and Exchange Commission for the Vanguard Target Retirement 2055 Fund, which is a broadly diversified fund that will gradually shift to more conservative investments over the life of the fund.
Vanguard anticipates that the fund, aimed at investors 18 to 22 years old, will be available for investment in the third quarter of 2010.
“Target-date funds now serve as the cornerstone of the retirement portfolios for many IRA holders and participants in defined contribution plans, and for good reason. These funds provide a balanced, well-diversified investment program in a single and relatively straightforward vehicle, suiting the needs of many investors,” said Vanguard CEO and Chairman Bill McNabb in a statement.
The fund giant says the Vanguard Target Retirement Funds have gained rapidly in popularity since their introduction in 2003. The funds had garnered $64 billion in net assets as of April 30, 2010, leading the industry for the past three years with $41 billion in cash flow, according to Strategic Insight.