Vanguard filed a registration statement with the Securities and Exchange Commission last Monday to offer five additional target retirement funds, expanding its current lineup of five funds plus one income fund, which have a total of $10 billion in assets.
The new funds have maturation dates ending at the end of every decade (2010, 2020, 2030, 2040 and 2050), whereas Vanguard's existing target retirement funds mature in the middle of each decade (2005, 2015, 2025, 2035 and 2045).
Vanguard is also modifying the portfolios in an attempt to increase their returns. First, it will expand the funds' exposure to equities between 10% and 20% and extend that exposure to longer time frames. The funds will also have between 1% and 2.5% of their assets invested in the Vanguard Emerging Markets Stock Index Fund. Further, the Vanguard European Stock Index Fund and the Vanguard Pacific Stock Index Fund will be added to the portfolios of the Vanguard Target Retirement 2005 and Income Funds, increasing the international exposure of these two funds to 10% and 6%, respectively.
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