The Vanguard Group has expanded its annuity offerings to include a new product designed for tax-sensitive investors who want to supplement their portfolios with a low-risk vehicle, the company announced today.

The Single 5 fixed annuity will offer a guaranteed rate of return of 5% for five years, the company said. The tax-deferred product will be underwritten by Jefferson Pilot LifeAmerica Insurance Co. and will require a minimum investment of $10,000.

Vanguard’s Fixed Income Group will oversee the product’s pool of fixed-income securities.

The firm’s CEO, John Brennan, said the product is designed "for investors seeking a conservative, tax-deferred investment."

Vanguard began offering a variable annuity program called the Vanguard Variable Annuity Plan in 1991.

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