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Your plan’s funds |
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Core fundsIf you have the time and know-how to create your own diversified investment mix, consider choosing one or more funds from the lineup below. Diversifying means having different types of investments. It doesn’t guarantee you’ll make a profit or that you won’t lose money. Short-term reserves As its name suggests, a stable value investment tries to keep its share price constant. But this is not guaranteed, and it's possible to lose money with an investment like this. Unlike bank savings accounts, this investment is not insured by the U.S. government. It's also not insured by your employer or Vanguard. Vanguard Retirement Savings Trust is a collective trust, not a mutual fund. This type of investment is offered only in retirement plans like yours. Before you invest, get the details. Know and carefully consider the objective, risks, charges, and expenses. Vanguard Fiduciary Trust Company manages the Vanguard collective trusts. Bond funds Balanced funds (stocks and bonds) Domestic stock funds International stock funds If you choose to put together your own mix of funds, you can get help in determining an asset mix that may be right for you by completing Vanguard’s Investor Questionnaire. You should consider reviewing your asset mix once a year to see if it still matches your original target mix. If you find that your current and target mixes differ substantially, you may want to make investment changes to get back to your target mix. Whenever you invest, there's a chance you could lose the money. Before you invest, get the details. Consider the fund’s objective, risks, charges, and expenses. The fund’s prospectus (or summary prospectus, if available) will tell you these important facts and more. So read it carefully. Call Vanguard at 800-523-1188 to get one. Or you can find one at vanguard.com. Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date. Vanguard Treasury Money Market Fund: U.S. Treasury investments and some U.S. government agency bonds are backed by the government, so it’s highly likely that payments will be made on time. But their prices can still fall when interest rates go up. Bond funds are made up of IOUs, primarily from companies or governments. These funds risk losing value if the debt isn’t repaid on time. Also, bond prices can drop when interest rates rise or the issuer’s reputation suffers. High-yield (“junk”) bonds come from borrowers more likely to default on loans than borrowers with better credit ratings. These bonds tend to pay higher interest rates to offset their higher risk. Small- and mid-cap funds are made up of the stocks of small and medium-sized companies. These companies have fewer financial resources than larger companies. Because of that, their stock prices can be more affected by swings in the economy. Non-U.S. stocks or bonds have risks tied to the political and economic stability of their country or region. And if the value of the foreign currency falls, the value of the stocks or bonds would also fall.
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