May 23, 2021 Posted By: growth-rapidly Tag: 401k
VLXVX refers to the Vanguard Target Retirement 2065 Fund. The VLXVX is one of the best Vanguard retirement funds. It is designed for investors who plan to retire or leave the workforce in 2065, which is the target year. Also, the fund invests more aggressively in the beginning. As it approaches the target date, i.e. 2065, it becomes more conservative. That is, it allocates its assets in more bonds and other low risk securities as opposed to stocks. The fund provides investors exposure to low-cost, broadly diversified mutual and index funds.
If you’re planning to retire in or within a few years of 2065, then you should consider the Vanguard Target Retirement 2065 Fund (VLXVX).
VLXVX: an overview
The Vanguard Target Retirement 2065 Fund (VLXVX) is designed for those investors who plan on retiring in the year of 2065. The fund invests in other Vanguard mutual funds (see below) and provides a broad diversification. Its asset allocation is more aggressive in the beginning and becomes more conservative over time. That means as the fund approaches 2065, the percentage of assets allocated to bonds and other less risky securities will increase while the percentage of assets allocated to stocks will decrease.
VLXVX: Asset Allocation
The Vanguard Target Retirement 2065 Fund is composed (as of 4/30/2021) of the following Vanguard funds: the Vanguard Total Stock Market Index Fund Investor shares (54.60%); Vanguard Total International Stock Index Fund Investor Shares (35.70%); Vanguard Total Bond Market II Index Fund Investor Shares (7.10%); the Vanguard Total International Bond Index Fund Investor Shares (2.40%); and the Vanguard Total International Bond II Index Fund (0.20%).
Moreover, the VLXVX invests in domestic stocks (54.19%); foreign stocks (35.84%); and preferred stocks (0.01%). Moreover, the fund invests in domestic bonds (6.60%); convertibles (0.08%); foreign bond (2.98%); cash (0.27%) and others (0.03%).
VLXVX: Sector Composition
The VLXVX invests in technology (18.6%), financial services (15.60%), consumer cyclical (12.18%), healthcare (11.83%), industrials (11.10%), communication services (9.12%), consumer defense (6.73%), basic materials (4.81%), real estate (3.57%), energy (3.34%) and utilities (2.75%).
VLXVX: Fees, Minimums, Price & Performance
The VLXVX has a reasonable expense ratio of 0.15% and an initial minimum investment of $1,000, making it one of the best Vanguard retirement funds. A $10,000 invested in this fund has a $267 fees over 10 years. In addition to that fee, Vanguard charges a $20 annual account service fee if you have a balance of less than $10,000 in the account. As for performance, this fund has returned 51.66% over the past year and 12.02% percent over the past three years. The price for one share is $29.87 as of May 21, 2021.
This Vanguard retirement fund invests in stocks, bonds and other securities domestically and internationally. Therefore, they are subject to risk that comes with investing in high yield, small cap and other US and foreign securities. So, you should be able to stomach the risks that come from the volatility of the market. However, the risk associated with the Vanguard Target Retirement 2065 Fund is Average comparing to other Vanguard funds. You should consider investing in this Vanguard retirement fund if you’re planning to retire between 2063 to 2067.
In conclusion, the VLXVX is open to new investors. It has a YTD return of 8.5%, a 3-year annualized return of 13.3%. Its net asset is $1.33 billions. The target date is 2065. The expense ratio is 0.15% and the minimum investment is a reasonable $1000, making it one of the best Vanguard retirement funds out there. Moreover, the Vanguard Target Retirement 2065 Fund invests in stocks, bonds, cash, convertible bonds, preferred stocks and other investments. If you are a long term investor, meaning that you don’t plan to retire soon, you should fare well in the VLXVX fund.
|Year to Date||+8.58%||VLXVX|
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