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1
Q U A R T E R L Y R E V I E W
VanguardTarget Retirement Funds and TrustsJune 30, 2020
For institutional and sophisticated investors only. Not for public distribution.
22
Q U A R T E R L Y S P O T L I G H T
Executive summary 3
When the best surprise is no surprise 4
T D F I N D U S T R Y A N D M A R K E T O V E R V I E W
Industry growth and market share 7
Market environment 8
V A N G U A R D F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
Vanguard fund oversight and glide path 9
Vanguard fund performance and attribution 11
C O M P E T I T O R F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
Beyond the glide path 15
12-month return attribution 17
A P P E N D I X
Absolute performance results 19
C O N T E N TS Edition 25
For institutional and sophisticated investors only. Not for public distribution.
Q U A R T E R L Y S P O T L I G H T
The first half of 2020 was one of the most economically erratic periods we’ve experienced in a long time. By the end
of March, investors had watched large portions of their portfolios evaporate in one of the worst first quarters on record,
driven by COVID-19 uncertainty. By the end of June, U.S. stocks had finished their best quarter in 20 years. Clients
in Vanguard Target Retirement Funds benefited by staying the course and sticking to their long-term retirement plans.
As of June 30, net inflows reached $16 billion.
Performance of funds underlying Vanguard Target Retirement Funds in the first half of 2020
In this edition, on page 4, we provide a review of how Vanguard Target Retirement Funds helped limit
unwanted surprises during this volatile period by maintaining a well-diversified approach to portfolio construction
and ensuring that asset allocations across the glide path stayed close to their targets to the benefit of clients’
long-term retirement plans.
Also in this edition, on pages 15-16, we provide an updated look into target-date fund (TDF) portfolio construction beyond
the glide path. This section features comparisons across asset allocation, home bias, and select sub-asset characteristics
for the major TDF providers.
We hope you find our spotlight pieces to be informative. As always, we remain open to ideas for improving our Quarterly
Review, including suggestions for future articles.
Vanguard quarterly review: A 2020 midyear assessment
Join us on Thursday, August 6, from 11 a.m.–12 noon, Eastern time, for a live webinar featuring insights from our newest
editions of Vanguard Index Funds Quarterly Review and Vanguard Target Retirement Funds and Trusts Quarterly Review.
Members of Vanguard Index Strategies and Investment Solutions teams will join us to discuss a number of timely topics,
including why a clear understanding of fixed income investments and smart target-date fund asset allocations were critical
in the tumultuous first half of 2020. To register click here.
Executive summary
Source: Vanguard, Institutional share class as of June 30, 2020.
The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.institutional.vanguard.com. Standard performance of the funds can be located on page 22 of the Quarterly Review.
Fund name (inception date) 1Q 2020 2Q 2020
Calendar
year-to-date
Vanguard Total Bond Market Index Fund (09/18/1995) 3.28% 2.98% 6.36%
Vanguard Total International Bond Index Fund (05/31/2013) 0.16% 2.20% 2.36%
Vanguard Total Stock Market Index Fund (07/07/1997) –20.86% 22.10% –3.38%
Vanguard Total International Stock Index Fund (11/29/2010) –24.31% 18.12% –10.59%
For institutional and sophisticated investors only. Not for public distribution.
44
Q U A R T E R L Y S P O T L I G H T
1 Morningstar and Vanguard data.2 How America Saves 2020, Vanguard.3 CRSP U.S. Total Market Index.4 FTSE Global All Cap, ex-US Index.* As of March 31, 2020.
Two giant forces collided in the first quarter of 2020, creating
a significant test for the target-date fund industry. The first
was the substantial growth in TDF assets since the last major
downturn, in 2008. As of March 31, 2020, TDF industry
assets totaled $1.92 trillion, up from $182 billion in 2008.1
About 78% of Vanguard plan participants now own a TDF,
and 54% have a TDF as their sole holding.2 Now a major
force in the retirement market, TDFs ran directly into another
big force, this year’s extraordinary market volatility.
When the best surprise is no surprise
In the first quarter, U.S. stocks fell more than 20%.3 International stocks dropped 24%,4 while U.S. interest rates reached record
lows, all over a fraction of the time it took for markets to reach similar levels in 2008. Then, just as investors braced for a prolonged
downturn, equity markets rebounded over the second quarter.
From a performance standpoint, we never like to see negative returns. But we also recognize that over a full investment life cycle,
we will encounter periods of market turbulence like the one at the beginning of 2020. What we do want to limit during periods like
this are surprises, and that is exactly what the Target Retirement Funds did during this volatile time. The Target Retirement Funds
performed as expected given the asset allocation of each TDF vintage across the glide path. While this tumult revealed
weaknesses in certain asset classes commonly used in TDFs, it also highlighted the merits of a straightforward approach to
portfolio diversification. That is a reassuring result for plan sponsors and investors. It’s a classic case of the best surprise being no
surprise at all.
At Vanguard, we build our funds for this kind of steady performance. Founded in 1975 and committed to helping give investors the
best chance for investment success, Vanguard has worked its way through so many bouts of market volatility that we even have a
term for it: “Vanguard weather,” periods of financial turbulence when Vanguard’s disciplined, low-cost, and long-term approach
serves investors well. During the Vanguard weather that struck in the first half of this year:
Vanguard’s diversification strategy limited downside volatility.
Our portfolio managers maintained targeted TDF asset allocations despite wild volatility.
Clients stayed the course and stuck to their long-term retirement plans.
For institutional and sophisticated investors only. Not for public distribution.
5
Q U A R T E R L Y S P O T L I G H T
Exhibit 5.1 Asset class performance in first quarter 2020Vanguard’s approach to diversification weathered
the test
Vanguard Target Retirement Funds aim to take a
straightforward approach to diversification. The equity
allocation of each fund is meant to enhance long-term returns
while the fixed income allocation is meant to provide ballast
and downside protection. Each of the Target Retirement
Funds’ underlying building blocks are designed to provide
high-quality, broad-based exposure to the global equity and
fixed income markets and work in tandem to provide effective
market diversification that can balance out the many risks
investors will face over their investment life cycle.
Bull markets tend to have the ability to mask portfolio
construction issues, so a period like the first quarter of 2020
exposes whether investors were truly diversified and whether
underlying asset classes are performing as designed. Across
the TDF industry, allocations to high-yield bonds and
commodities and overweighting REITs are commonly used to
try to enhance diversification. Through our TDF-related
research efforts, Vanguard has deliberately decided not to
include these exposures for a variety of reasons at this time.
Take high-yield bonds as an example—this asset class acts
as a bit of a hybrid exposure that may outperform
investment-grade bonds during bull markets but also
correlates more closely to equities than investment-grade
bonds do. As a result, high-yield bonds are likely to
underperform at the exact moment that investors need their
bond allocation to provide downside protection.
During the first quarter of 2020, each of the previously
mentioned asset classes provided some level of surprise
relative to what you would typically expect from a diversifying
asset class in a multiasset portfolio, with high-yield bonds, as
measured by Exhibit 5.1.
When the best surprise is no surprise
Plan sponsors can help fulfill their fiduciary responsibilities by
monitoring whether an asset manager’s diversification
strategies are achieving their intended goals, especially as
TDFs continue to make up a growing portion of overall plan
assets.
Vanguard Target Retirement Funds’ allocations
stayed on target despite the wild market swings
This year’s volatility—primarily in late February through early
April—saw intraday valuation swings of unprecedented
magnitude in both equity and fixed income markets, presenting
never-before-seen challenges. Yet during this extremely
volatile period, Vanguard Target Retirement Funds did not
deviate significantly from the target asset allocation across the
glide path. Looking at the broader TDF industry, however,
these results varied by provider, partly driven by the
capabilities of the associated investment management teams,
as well as by differences in rebalancing methodologies. The
frequency of rebalancing a TDF—and its benchmark—can
affect how closely a TDF maintains its asset allocation during
periods of heightened volatility.
Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.
Notes: U.S. investment-grade bonds represented by Bloomberg Barclays U.S. Aggregate Bond Index; Non-U.S. investment-grade bonds (hedged) represented by
Bloomberg Barclays Global Agg ex U.S. Float Adj RIC Cap Index Hedged; U.S. Corporate High Yield Index represented by Bloomberg Barclays U.S. Corporate High Yield
Index; Commodities Index represented by Bloomberg Commodity Index; U.S. REIT Index represented by MSCI U.S. REIT Index.
5
0
-5
-10
-15
-20
-25
-30
Source: Vanguard, 2020.
For institutional and sophisticated investors only. Not for public distribution.
66
Q U A R T E R L Y S P O T L I G H T
5 Vanguard, 2020.6 Brinson, Gary P., L. Randolph Hood, and Gilbert L. Beebower, 1986. “Determinants of Portfolio Performance.” Financial Analysts Journal 42(4): 39–48.7 Vanguard, 2020.
Extreme market moves can cause portfolios to drift
dramatically from the target asset allocation if they are not
rebalanced consistently. To illustrate the effect of rebalancing
frequency, let’s examine a hypothetical 50% global stock and
50% global bond portfolio. During the volatile month of
March, a portfolio that was rebalanced daily maintained asset
class weights near the 50% global stock and 50% global
bond target allocations. If the same portfolio were rebalanced
monthly, steep equity declines would have driven the global
stock allocation as low as 43% and the global bond allocation
as high as 57% during the month, a significant deviation from
the target asset allocations.5
The asset allocations of Vanguard Target Retirement Funds
are designed for long time horizons, which inevitably include
periods of market uncertainty. Given that more than 90% of a
portfolio’s long-term return variability is driven by its strategic
asset allocation,6 significant deviations from target allocations
may harm long-term returns, which is why Vanguard
constructs and manages our TDFs to hew closely to stated
investment objectives. Our disciplined, sensible approach to
rebalancing also can give investors the confidence that their
retirement plan will perform as expected, with consistent
asset mixes based on age and planned retirement date.
Reliable performance helps Vanguard investors
stay the course
Performance that was in line with expectations and that
yielded no surprises also contributed to Target Retirement
Fund investors staying the course in the first quarter.
Through our analysis of investor trading behaviors, we saw
that roughly 99.6% of the dollars in Vanguard Target
Retirement Funds stayed put throughout March 2020.7
Knowing what to expect can help investors avoid behavioral
errors, such as panic-selling at an inopportune time.
Importantly, these investors were also able to participate in
the rebound that occurred in May and June.
When the best surprise is no surprise
Looking ahead
The first half of 2020 was filled with uncertainty and featured
some of the most unpredictable markets ever witnessed. But it
also provided a valuable opportunity for plan sponsors to
assess their TDF providers and determine if they are providing
the experience sponsors expect, which is especially important
now that tens of millions of investors rely on TDFs as a growing
portion of their retirement savings.
Since their inception in 2003, Vanguard Target Retirement
Funds have endured multiple market downturns, most notably
in 2008 and again in the first half of this year. Through each
of these periods they have performed as designed, with the
asset allocation reducing downside risk across the glide path.
We were also encouraged to see that TDF investors were able
to stick to their long-term plans and not abandon them in the
face of this latest round of volatility. We’re always on the
lookout for new fronts of Vanguard weather so that we can
continue to guide our TDF investors through them and help
them to achieve retirement readiness.
For institutional and sophisticated investors only. Not for public distribution.
T D F I N D U S T R Y A N D M A R K E T O V E R V I E W
According to data from Morningstar combined with Vanguard’s funds and trusts data, industry assets exceeded
$2 trillion in assets as of the end of second quarter 2020. Vanguard continued to lead the industry in cash flow
and assets under management, receiving an estimated 32 cents of every dollar invested in a target-date fund
over the last 12 months.
The industry’s top providers—Vanguard, Fidelity, BlackRock, T. Rowe Price, JPMorgan, American Funds, and State
Street—hold a cumulative 86% share of all industry assets, or more than $1.95 trillion as of June 30, 2020.
We estimate that as of the end of June, the target-date fund industry experienced a 5.6% organic growth rate over
the past 12 months.*
Industry growth and market share
Sources: Vanguard, Morningstar, as of June 30, 2020. Public company data also used prior to 2020.* Organic growth measured as current period’s net new flows divided by prior period’s ending assets.
$0
$400
$800
$1,200
$1,600
$2,000
$2,400
2001 2005 2009 2013 2017
Bil
lio
ns
2020
13%
4%
14%
4%
-4%
7%
15%
9%
26%
12%
4%13%
9%
38%
32%
AUM1-year
cash flow
Vanguard Fidelity T. Rowe Price BlackRock
JPMorgan American Funds State Street Other
Exhibit 7.1 Growth of target-date fund industry assets and market share
For institutional and sophisticated investors only. Not for public distribution.
8
T D F I N D U S T R Y A N D M A R K E T O V E R V I E W
8
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
3Q
2019
4Q
2019
1Q
2020
2Q
2020
REIT EMB EMB CRSP REIT REIT HYB FTSE IAGG IAGG EMB REIT AGG CRSP
28.5 8.8 18.3 33.6 30.4 2.5 17.1 27.4 3.2 30.8 7.7 9.3 3.1 22.1
CRSP REIT REIT FTSE CRSP IAGG CRSP CRSP CASH REIT IAGG CRSP CASH FTSE
17.3 8.7 17.8 15.6 12.6 1.3 12.7 21.2 1.9 25.8 3.1 9.0 0.4 17.1
COM AGG FTSE HYB IAGG EMB COM EMB STPS FTSE AGG COM IAGG REIT
16.8 7.8 17.6 7.4 9.1 1.3 11.4 9.2 0.6 21.8 2.3 4.0 0.2 11.7
HYB HYB CRSP REIT EMB AGG EMB HYB AGG HYB HYB HYB STPS EMB
15.1 5.0 16.2 2.5 7.1 0.5 9.2 7.5 0.0 14.3 1.3 2.6 –0.7 10.8
FTSE STPS HYB IAGG AGG CRSP REIT REIT HYB EMB CRSP EMB EMB HYB
13.0 4.5 15.8 1.3 6.0 0.4 8.6 5.1 –2.1 14.1 1.1 2.0 –11.4 10.2
EMB IAGG IAGG CASH HYB CASH IAGG AGG EMB AGG EMB STPS HYB COM
12.1 4.0 7.3 0.1 2.5 0.0 4.9 3.5 –3.9 8.7 0.8 1.1 –12.7 5.0
AGG CRSP AGG STPS CASH STPS FTSE IAGG REIT IAGG CASH CASH CRSP AGG
6.5 1.1 4.2 –1.6 0.0 0.0 4.7 2.6 –4.6 8.1 0.6 0.5 –20.9 2.9
STPS CASH STPS AGG STPS FTSE STPS STPS CRSP COM STPS AGG COM STPS
3.3 0.1 2.4 –2.0 –1.1 –4.3 2.8 0.9 –5.2 5.4 0.3 0.2 –23.5 2.6
IAGG COM CASH EMB FTSE HYB AGG CASH COM STPS FTSE REIT FTSE IAGG
3.2 –13.3 0.1 –6.3 –3.4 –4.5 2.6 0.8 –13.0 4.9 –1.7 –0.8 –24.0 2.3
CASH FTSE COM COM COM COM CASH COM FTSE CASH COM IAGG REIT CASH
0.1 –14.2 –1.1 –9.5 –17.0 –24.7 0.3 0.7 –14.6 2.3 –2.4 –1.2 –27.0 0.1
Market environment
Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular
investment, as you cannot invest directly in an index.
Sources: Vanguard, Bloomberg Barclays Live, and Morningstar, as of June 30, 2020.* MSCI U.S. Broad Market Index used as a proxy for 10-year returns.
** Back-tested data provided by Bloomberg Barclays for periods prior to 2013.
Average annualized return
Index returns
Three
months
One
year
Three
years
Five
years
Ten
years
Target
Retirement
Fund
building
blocks
CRSP CRSP U.S. Total Market Index* 22.1 6.5 10.0 10.0 13.7
FTSE FTSE Global All Cap ex U.S. Index 17.1 –4.4 1.1 2.4 5.3
AGG Bloomberg Barclays U.S. Aggregate Bond Index 2.9 8.7 5.3 4.3 3.8
IAGG Bloomberg Barclays Global Agg ex U.S. Float Adj RIC Cap Index Hedged** 2.3 4.3 5.2 4.7 4.3
STPS Bloomberg Barclays U.S. 0–5 Year TIPS Index 2.6 3.4 2.7 2.0 1.7
Other
indexes
CASH 3-Month T-Bill 0.1 1.6 1.7 1.1 0.6
HYB Bloomberg Barclays U.S. Corporate High Yield Index 10.2 0.0 3.3 4.8 6.7
EMB Bloomberg Barclays Emerging Markets Sovereign Index USD 10.8 1.0 3.6 5.1 6.0
REIT MSCI U.S. REIT Index 11.7 –12.9 0.1 4.1 9.1
COM Bloomberg Commodity Index 5.0 –18.4 –7.7 –8.7 –6.4
Exhibit 8.1 Index returns ranked by performance
For institutional and sophisticated investors only. Not for public distribution.
V A N G U A R D F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
The Strategic Asset Allocation (SAA) Committee has overall responsibility for the investment methodology of the Single Fund
and Advised Solutions. The purpose of the SAA Committee is to conduct an ongoing review and analysis of the investment
methodology of Vanguard’s Single Fund and Advised Solutions across the globe with the aim of a consistent global
investment methodology that incorporates local market considerations.
As depicted in the above chart, the SAA Committee is responsible for the ongoing oversight and decision-making for Vanguard’s
single-fund solutions.
The primary research groups that support the committee’s oversight and research agenda are the Investment Strategy Group
(portfolio construction experts), Strategic Retirement Consulting (plan design experts), and the Center for Investor Research
(investor behavior experts).
Any changes to the Target Retirement Funds are ultimately approved by the SAA Committee, chaired by our global chief
economist, Joe Davis; the Global Investment Committee, chaired by our CEO, Tim Buckley; and Vanguard’s board of directors.
Effectively, this oversight structure translates into stability in terms of both philosophy and execution.
Process
SAA members
• Joe Davis, Ph.D.
Global Chief Economist (Chair)
• Greg Davis, CFA (ex-officio)
Global Chief Investment Officer
• Matthew Brancato, CFA, CPA
Head of Institutional Investor Services
• Manish Nagar
Head of Risk Management Group
• Roger Aliaga-Díaz, Ph.D.
Head of Vanguard Capital Markets Model®
• Francis Kinniry, CFA
Head of Portfolio Construction
• Paul Jakubowski
Global Head of Fixed Income Indexing
Head of Investments, Europe
• James Martielli, CFA
Head of Investment Solutions
• Daniel Reyes, CFA
Head of Investments, Asia-Pacific
• Rodney Comegys
Head of Equity Index Group
• Kaitlyn Caughlin, CFP
Head of Portfolio Review Department
SAA Committee
Ongoing oversight and
decision-making
Experts in portfolio
construction, plan design,
and investor behavior
Senior management
Review and approval
Portfolio managers are responsible for ongoing monitoring and rebalancing
Strategic Asset Allocation Committee
As of June 30, 2020.
Purpose
For institutional and sophisticated investors only. Not for public distribution.
10
V A N G U A R D F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
Gradual changes since inception
2003:• Vanguard launched the Target
Retirement Funds utilizing the following
building blocks: Total Stock Market
Index Fund, European Stock Index
Fund, Pacific Stock Index Fund, Total
Bond Market Index Fund, Inflation-
Protected Securities Fund, and Prime
Money Market Fund.
• Expense ratio: 22 bps
2006:• Increased equity allocation across the glide
path by approximately 10%.
• Added exposure to Vanguard Emerging
Markets Index Fund.
• Expanded the target-date suite of funds to
include target retirement dates every five
years versus the initial funds, which targeted
one retirement date every ten years.
• Expense ratio: 21 bps
2013:• Vanguard added a 20% nominal bond allocation to the
Vanguard Total International Bond Index Fund
(currency hedged).
• Replaced the full market Inflation-Protected Fund with
the Short-Term Inflation-Protected Securities Index
Fund.
• Eliminated the Prime Money Market Fund, reallocating
the proceeds to other fixed income components.
• Expense ratio: 16–18 bps
2010:• Increased underlying
international equity allocation
from 20% to 30% of total equity.
• Replaced the three underlying
international equity index funds
(Europe, Pacific, and Emerging
Markets) with Vanguard Total
International Stock Index Fund.
• Expense ratio: 17–20 bps
2015:• Lowered costs by 13% for the
overall Target Retirement
Funds/Trusts franchise.
• Launched the 10 bps Institutional
Target Retirement Funds.
• Increased international allocations
by 10% in stocks and bonds to
60%/40% (U.S./ex-U.S.) for
stocks and 70%/30% for bonds.
• Expense ratio: 10–16 bps
Evolution of Vanguard’s glide-path design
* Target date is the year stated in the fund name. Target Retirement Fund allocations are based on a projected retirement age of 65.
Exhibit 10.1 The glide path today
For institutional and sophisticated investors only. Not for public distribution.
V A N G U A R D F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
Fund performance through June 30, 2020
The performance data shown represents past performance. Past performance is no guarantee of future results. Investment returns and principal
value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher
than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance. Some
funds assess purchase, redemption, and/or account maintenance fees. The performance data shown do not reflect deduction of these fees. If they
did, performance would be lower. Details on these fees and adjusted performance figures can be found in the fund detail section.
Sources: Vanguard and Morningstar, as of June 30, 2020.
Portfolio/Benchmark 3 months 1 year 3 years 5 years 10 years
Since
inception
Inception
date
Vanguard Target Retirement Income Fund
Investor Shares 7.84 5.69 5.39 4.93 5.84 5.30 10/27/2003
Institutional Shares 7.95 5.87 5.47 5.00 — 4.92 6/26/2015
Trust I 7.88 5.79 5.47 5.01 5.92 5.16 6/22/2007
Target Retirement Income Composite Index 7.95 6.26 5.71 5.18 6.04 — —
Vanguard Target Retirement 2015 Fund
Investor Shares 8.90 5.45 5.78 5.47 7.55 6.11 10/27/2003
Institutional Shares 8.92 5.60 5.86 5.53 — 5.35 6/26/2015
Trust I 8.88 5.56 5.83 5.54 7.63 5.16 6/28/2007
Target Retirement 2015 Composite Index 8.95 6.07 6.12 5.74 7.75 — —
Vanguard Target Retirement 2020 Fund
Investor Shares 11.40 5.06 6.09 5.96 8.31 6.19 6/7/2006
Institutional Shares 11.43 5.15 6.15 6.01 — 5.78 6/26/2015
Trust I 11.42 5.16 6.17 6.05 8.40 5.40 6/22/2007
Target Retirement 2020 Composite Index 11.45 5.76 6.48 6.26 8.58 — —
Vanguard Target Retirement 2025 Fund
Investor Shares 13.20 4.82 6.33 6.29 8.88 6.67 10/27/2003
Institutional Shares 13.19 4.85 6.38 6.34 — 6.06 6/26/2015
Trust I 13.23 4.95 6.44 6.40 8.97 5.45 6/28/2007
Target Retirement 2025 Composite Index 13.22 5.56 6.75 6.61 9.16 — —
Vanguard Target Retirement 2030 Fund
Investor Shares 14.58 4.40 6.42 6.47 9.37 6.48 6/7/2006
Institutional Shares 14.57 4.43 6.45 6.50 — 6.18 6/26/2015
Trust I 14.59 4.53 6.51 6.57 9.47 5.47 6/28/2007
Target Retirement 2030 Composite Index 14.53 5.10 6.82 6.78 9.64 — —
Vanguard Target Retirement 2035 Fund
Investor Shares 15.90 3.90 6.45 6.62 9.84 7.18 10/27/2003
Institutional Shares 15.92 3.98 6.50 6.66 — 6.30 6/26/2015
Trust I 15.95 4.06 6.56 6.74 9.94 5.60 6/28/2007
Target Retirement 2035 Composite Index 15.85 4.59 6.86 6.94 10.12 — —
Vanguard Target Retirement Fund and Trust performance
Average annualized return
For institutional and sophisticated investors only. Not for public distribution.
12
V A N G U A R D F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
Fund performance through June 30, 2020
Portfolio/Benchmark 3 months 1 year 3 years 5 years 10 years
Since
inception
Inception
date
Vanguard Target Retirement 2040 Fund
Investor Shares 17.29 3.46 6.50 6.76 10.08 6.77 6/7/2006
Institutional Shares 17.25 3.46 6.51 6.78 — 6.38 6/26/2015
Trust I 17.31 3.58 6.59 6.86 10.18 5.80 6/28/2007
Target Retirement 2040 Composite Index 17.17 4.04 6.88 7.08 10.37 — —
Vanguard Target Retirement 2045 Fund
Investor Shares 18.70 2.97 6.41 6.79 10.10 7.52 10/27/2003
Institutional Shares 18.65 2.99 6.45 6.82 — 6.42 6/26/2015
Trust I 18.63 3.06 6.49 6.88 10.19 5.78 6/28/2007
Target Retirement 2045 Composite Index 18.49 3.52 6.79 7.10 10.38 — —
Vanguard Target Retirement 2050 Fund
Investor Shares 18.67 3.02 6.42 6.79 10.10 6.81 6/7/2006
Institutional Shares 18.61 2.96 6.44 6.82 — 6.41 6/26/2015
Trust I 18.68 3.09 6.50 6.87 10.20 5.83 6/28/2007
Target Retirement 2050 Composite Index 18.49 3.52 6.79 7.10 10.38 — —
Vanguard Target Retirement 2055 Fund
Investor Shares 18.64 2.95 6.40 6.77 — 9.55 8/18/2010
Institutional Shares 18.63 2.98 6.46 6.83 — 6.43 6/26/2015
Trust I 18.65 3.07 6.50 6.87 — 9.07 10/5/2010
Target Retirement 2055 Composite Index 18.49 3.52 6.79 7.10 10.38 — —
Vanguard Target Retirement 2060 Fund
Investor Shares 18.61 2.95 6.39 6.76 — 9.16 1/19/2012
Institutional Shares 18.66 3.04 6.45 6.82 — 6.42 6/26/2015
Trust I 18.67 3.13 6.53 6.88 — 8.73 3/1/2012
Target Retirement 2060 Composite Index 18.49 3.52 6.79 7.10 — — —
Vanguard Target Retirement 2065 Fund
Investor Shares 18.59 2.84 — — — 6.17 7/12/2017
Institutional Shares 18.64 2.82 — — — 6.27 7/12/2017
Trust I 18.73 3.13 — — — 7.39 7/21/2017
Target Retirement 2065 Composite Index 18.49 3.52 6.79 — — — —
Vanguard Target Retirement Fund and Trust performance (continued)
Average annualized return
The performance data shown represents past performance. Past performance is no guarantee of future results. Investment returns and principal
value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher
than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance. Some
funds assess purchase, redemption, and/or account maintenance fees. The performance data shown do not reflect deduction of these fees. If they
did, performance would be lower. Details on these fees and adjusted performance figures can be found in the fund detail section.
Sources: Vanguard and Morningstar, as of June 30, 2020.
For institutional and sophisticated investors only. Not for public distribution.
V A N G U A R D F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
Underlying fund performance contribution
Past performance is not a guarantee of future results.
Sources: Vanguard and Morningstar, as of June 30, 2020.
Total Stock Market Index Total International Stock Index Total Bond Market II Index
Total International Bond Index Short-Term Inflation-Protected Securities Index Cash
Total return
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 Income
Exhibit 13.1 12-month return contribution by underlying funds
0%
1%
2%
3%
4%
5%
6%
7%
8%
2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 Income
Exhibit 13.2 3-year return contribution by underlying funds
For institutional and sophisticated investors only. Not for public distribution.
14
V A N G U A R D F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
-100
-80
-60
-40
-20
0
20
40
2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 Income
Basis
poin
ts
Excess return attribution
-50
-40
-30
-20
-10
0
10
2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 Income
Basis
poin
ts
Allocation impact Out/underperformance due to differences in the strategic asset allocation of the funds versus their
benchmarks. These differences can be particularly notable at times of significant market volatility, as portfolio
managers work to balance transaction costs against a daily rebalanced benchmark.
Cash impact Out/underperformance due to a cash balance in the fund yielding a return different from the benchmark. When
they exist at all, balances are generally small.
Expense ratio Underperformance attributable to the subtraction of expenses from fund returns.
Fair-value pricing Out/underperformance due to the adjustment of the prices of non-U.S. equities for changes in their fair value
that occur after the close of their local market but before the net asset value is calculated for each U.S. mutual
fund as of 4 p.m., Eastern time. This impact generally evens out over longer periods of performance.
Residual Out/underperformance due to factors outside of those captured above.
Underlying fund tracking
differences ex-FV
Out/underperformance of the underlying portfolios versus their relative benchmarks. Figure is shown after
controlling for fair-value pricing, but is inclusive of pricing difference driven by Bloomberg Barclays’ (BB)
indexes pricing at 3 p.m., Eastern time, versus mutual funds pricing at 4 p.m., as well as transaction costs
associated with rebalancing the fund-of-funds portfolio. Note that BB has announced plans to move index
pricing to 4 p.m., Eastern time, to be implemented in 2020.
Total net excess return Indicates the total amount fund returns were higher or lower than benchmark returns. Calculated as the sum of
the individual impacts of each of the six above drivers of benchmark-relative excess return.
Exhibit 14.1 12-month return attribution
Exhibit 14.2 3-year return attribution
Past performance is not a guarantee of future results.
Sources: Vanguard and Morningstar, as of June 30, 2020.
For institutional and sophisticated investors only. Not for public distribution.
C O M P E T I T O R F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
Vanguard Target Retirement 2050
American Funds 2050 Target Date Retirement
BlackRock LifePath® Index 2050
Fidelity Freedom® Index 2050
State Street Target Retirement 2050
T. Rowe Price Retirement 2050
Additional characteristics
Glide path Strategy Notable exposures
Through Index —
Through Active —
To Index REIT OW, Commodities1
Through Index Long duration
Through Index Long duration
Through Active —
Asset allocation
Vanguard Target Retirement 2050
American Funds 2050 Target Date Retirement
BlackRock LifePath® Index 2050
Fidelity Freedom® Index 2050
State Street Target Retirement 2050
T. Rowe Price Retirement 2050
Vanguard Target Retirement 2050
Global market capitalization2
American Funds 2050 Target Date Retirement
BlackRock LifePath® Index 2050
Fidelity Freedom® Index 2050
State Street Target Retirement 2050
T. Rowe Price Retirement 2050
2050 vintage: Beyond the glide path
91%
91%
99%
90%
91%
94%
9%
9%
10%
9%
6%
U.S. Non-U.S.
64%
39%
83%
94%
94%
100%
65%
36%
61%
17%
6%
6%
0%
35%
60%
56%
67%
57%
61%
60%
65%
40%
44%
33%
43%
39%
40%
35%
Sources: Morningstar data, based on most recent holdings disclosure for each fund included in the calculation. As-of dates may vary depending on the timing and frequency of data madeavailable to Morningstar. Data as of June 30, 2020.1 Commodity exposure is present in CIT product only. Mutual fund product does not include commodity exposure. 2 Global market capitalization calculated using FTSE All Country Equity Index and Bloomberg Barclays Global Aggregate Bond Index.Note: Due to spacing issues, data labels below 8% are not displayed. Due to rounding, may not total to 100%. There may be other material differences between products that must be considered prior to investing.
Large-cap Small-/Mid-cap Investment-grade High-yield TIPS
U.S. Non-U.S.
Exhibit 15.1 Industry peer group asset allocation comparison
Equity Fixed income
U.S./Non-U.S. allocationEquity Fixed income
Sub-asset class allocationEquity Fixed income
100%
97%
100%
100%
100%
81%
0%
18%
75%
84%
74%
80%
68%
75%
25%
16%
26%
20%
32%
25%
For institutional and sophisticated investors only. Not for public distribution.
16
C O M P E T I T O R F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
Vanguard Target Retirement Income
American Funds Income Target Date Retirement
BlackRock LifePath® Index Income
Fidelity Freedom® Index Income
State Street Target Retirement Income
T. Rowe Price Retirement 2005*
Additional characteristics
Glide path Strategy Notable exposures
Through Index S-T TIPs
Through Active —
To Index Commodities1
Through Index Long, Ultrashort durations
Through Index I-T TIPs, REIT OW
Through Active —
Asset allocation
Vanguard Target Retirement Income
American Funds Income Target Date Retirement
BlackRock LifePath® Index Income
Fidelity Freedom® Index Income
State Street Target Retirement Income
T. Rowe Price Retirement 2005*
Vanguard Target Retirement Income
Global market capitalization2
American Funds Income Target Date Retirement
BlackRock LifePath® Index Income
Fidelity Freedom® Index Income
State Street Target Retirement Income
T. Rowe Price Retirement 2005*
Income vintage: Beyond the glide path
31%
41%
42%
23%
38%
39%
69%
59%
58%
77%
62%
61%
U.S. Non-U.S.
73%
39%
87%
93%
94%
95%
69%
27%
61%
13%
7%
6%
5%
31%
59%
56%
70%
66%
61%
63%
66%
41%
44%
30%
34%
39%
37%
34%
Sources: Morningstar data, based on most recent holdings disclosure for each fund included in the calculation. As-of dates may vary depending on the timing and frequency of data madeavailable to Morningstar. Data as of June 30, 2020.1 Commodity exposure is present in CIT product only. Mutual fund product does not include commodity exposure. 2 Global market capitalization calculated using FTSE All Country Equity Index and Bloomberg Barclays Global Aggregate Bond Index.* No explicit income vintage in lineup. 2005 represents the most conservative asset allocation, as a proxy.Note: Due to spacing issues, data labels below 8% are not displayed. Due to rounding, may not total to 100%. There may be other material differences between products that must be considered prior to investing.
Large-cap Small-/Mid-cap Investment-grade High-yield TIPS
U.S. Non-U.S.
Exhibit 16.1 Industry peer group asset allocation comparison
Equity Fixed income
U.S./Non-U.S. allocationEquity Fixed income
Sub-asset class allocationEquity Fixed income
84%
81%
92%
90%
71%
66%
11%
12%
22%
16%
8%
8%
10%
17%
12%
75%
91%
69%
80%
69%
75%
25%
9%
31%
20%
31%
25%
For institutional and sophisticated investors only. Not for public distribution.
C O M P E T I T O R F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
-1.79
0.56
0.14
2.10
2.53
-3
-2
-1
0
1
2
3
4
EA
FIA
EM
S
FIM
S
Oth
er
EA
FIA
EM
S
FIM
S
Oth
er
EA
FIA
EM
S
FIM
S
Oth
er
EA
FIA
EM
S
FIM
S
Oth
er
EA
FIA
EM
S
FIM
S
Oth
er
• BlackRock’s underperformance relative to Vanguard was driven primarily by a higher strategic allocation to equities
and REITs.
• Fidelity’s marginal outperformance was driven by a strategic tilt toward long-duration Treasuries.
• T. Rowe Price’s marginal outperformance was driven by a larger U.S. equity allocation relative to Vanguard.
• State Street’s strategic allocation to long-duration Treasuries led to outperformance over the period.
• American Funds’ performance benefitted from active-management decisions within the equity portion of the portfolio.
12-month return attribution
Un
de
rpe
rfo
rma
nce
rela
tive
to
Va
ng
ua
rd
(bp
s)
Ou
tpe
rfo
rma
nce
rela
tive
to V
an
gu
ard
(bp
s)
U.S. equity Foreign equity Total relative return
U.S. fixed income Foreign fixed income
BlackRock 2050 Fidelity 2050 T. Rowe Price 2050 State Street 2050 American Funds 2050
Element Description
Equity allocation (EA) Vintage allocation to asset classes and sub-asset allocation to U.S. vs. non-U.S.
Fixed income allocation (FIA)
Equity manager selection (EMS) Benchmark construction differences (cap and/or style tilts), securities lending, fair-value pricing,
building block expense ratiosFixed income manager selection (FIMS)
Other Compounding effect (residual) due to nondaily holdings availability
Total excess return The sum of the above relative performance differences between Vanguard Target Retirement Fund
and competitors’ similar vintage
Exhibit 17.1 Relative to top five industry 2050 funds
Past performance is not a guarantee of future results.
Sources: Vanguard and Morningstar, as of June 30, 2020.
For institutional and sophisticated investors only. Not for public distribution.
18
C O M P E T I T O R F U N D C O N S T R U C T I O N A N D P E R F O R M A N C E
0.440.82
-1.87
-1.01
-2.20
-5
-4
-3
-2
-1
0
1
2
3
4
EA
FIA
EM
S
FIM
S
Oth
er
EA
FIA
EM
S
FIM
S
Oth
er
EA
FIA
EM
S
FIM
S
Oth
er
EA
FIA
EM
S
FIM
S
Oth
er
EA
FIA
EM
S
FIM
S
Oth
er
• BlackRock’s marginal outperformance was driven primarily by a larger U.S. fixed income allocation relative to Vanguard.
• Fidelity’s more conservative glide path aided performance during the period.
• T. Rowe Price’s performance was negatively impacted by active-management decisions within the fixed income portion
of the portfolio.
• State Street’s underperformance was driven primarily by credit tilts within the fixed income portion of the portfolio.
• American Funds’ underperformance was driven by poor active-management decisions in both the equity and fixed
income portions of the portfolio.
12-month return attribution (continued)
Un
de
rpe
rfo
rma
nce
rela
tive
to
Va
ng
ua
rd
(bp
s)
Ou
tpe
rfo
rma
nce
rela
tive
to V
an
gu
ard
(bp
s)
BlackRock Income Fidelity Income T. Rowe Price Income State Street Income American Funds Income
Past performance is not a guarantee of future results.
2005 Fund is used as a proxy for T. Rowe Price; 2010 for American Funds, as they have no terminal fund.Sources: Morningstar and Vanguard calculations; data as of June 30, 2020.
U.S. equity Foreign equity Total relative return
U.S. fixed income Foreign fixed income
Element Description
Equity allocation (EA) Vintage allocation to asset classes and sub-asset allocation to U.S. vs. non-U.S.
Fixed income allocation (FIA)
Equity manager selection (EMS) Benchmark construction differences (cap and/or style tilts), securities lending, fair-value pricing,
building block expense ratiosFixed income manager selection (FIMS)
Other Compounding effect (residual) due to nondaily holdings availability
Total excess return The sum of the above relative performance differences between Vanguard Target Retirement Fund
and competitors’ similar vintage
Exhibit 18.1 Relative to top five industry income funds
For institutional and sophisticated investors only. Not for public distribution.
A P P E N D I X
3 months
Year
to date 1 year 3 years 5 years 10 years
Since
inception
Inception
date
Fund
Vanguard Target Retirement Income Fund 7.84 1.46 5.69 5.39 4.93 5.84 5.30 10/27/2003
Target Retirement Income Composite Index 7.95 1.95 6.26 5.71 5.18 6.04 — —
Lipper Target Consrv Funds Average 8.33 -0.50 3.35 4.27 4.12 4.98 — —
Fidelity Freedom Income 6.38 1.36 4.93 4.53 4.29 4.60 4.80 10/17/1996
Fidelity Freedom Index Income Investor 5.31 3.12 6.51 5.29 4.41 4.22 4.19 10/2/2009
T. Rowe Price Retirement 2005 11.24 -0.29 4.42 5.12 5.12 6.68 5.65 2/27/2004
American Funds 2010 Trgt Date Retire R5 8.28 -0.09 4.59 5.15 5.33 7.17 4.91 2/1/2007
BlackRock LifePath Index Retire K 9.72 1.39 6.50 6.00 5.53 — 5.58 5/31/2011
State Street Target Retirement K 8.85 0.36 4.68 5.11 4.71 — 4.41 9/30/2014
JPMorgan SmartRetirement Income R5 9.24 -1.06 3.01 4.37 4.28 5.76 5.02 5/15/2006
TIAA-CREF Lifecycle Retire Income Instl 10.71 0.00 4.70 5.42 5.27 6.79 5.02 11/30/2007
Principal LifeTime Strategic Inc Instl 8.30 2.10 5.72 5.10 4.50 5.51 4.60 3/1/2001
Wells Fargo Target Today R6 7.92 0.50 4.56 4.71 3.86 3.95 4.17 6/30/2004
Vanguard Target Retirement 2015 Fund 8.90 0.79 5.45 5.78 5.47 7.55 6.11 10/27/2003
Target Retirement 2015 Composite Index 8.95 1.28 6.07 6.12 5.74 7.75 — —
Lipper Target 2015 Funds Average 10.20 -0.73 4.02 4.97 4.81 6.26 — —
Fidelity Freedom 2015 10.89 -0.73 4.77 5.49 5.60 7.17 5.80 11/6/2003
Fidelity Freedom Index 2015 Investor 9.68 0.81 6.08 6.43 5.89 6.94 6.73 10/2/2009
T. Rowe Price Retirement 2015 13.00 -1.10 4.24 5.57 5.69 8.08 6.32 2/27/2004
American Funds 2015 Trgt Date Retire R5 8.90 -0.50 4.58 5.37 5.57 7.74 5.16 2/1/2007
TIAA-CREF Lifecycle 2015 Institutional 11.62 -0.41 4.66 5.69 5.62 7.84 5.36 1/17/2007
Principal LifeTime 2015 Institutional 11.02 0.43 5.16 5.70 5.26 7.60 5.15 2/29/2008
Wells Fargo Target 2015 R6 8.59 -0.32 4.08 4.83 4.32 5.06 3.88 6/29/2007
Vanguard Target Retirement 2020 Fund 11.40 -0.58 5.06 6.09 5.96 8.31 6.19 6/7/2006
Target Retirement 2020 Composite Index 11.45 0.00 5.76 6.48 6.26 8.58 — —
Lipper Target 2020 Funds Average 10.08 -1.17 3.57 4.81 4.66 6.66 — —
Fidelity Freedom 2020 12.37 -1.49 4.61 5.65 5.81 7.70 6.64 10/17/1996
Fidelity Freedom Index 2020 Investor 11.16 -0.02 5.72 6.63 6.17 7.49 7.23 10/2/2009
T. Rowe Price Retirement 2020 14.51 -1.77 4.15 5.93 6.14 8.87 8.22 9/30/2002
American Funds 2020 Trgt Date Retire R5 9.76 — 5.27 6.00 6.05 8.57 5.48 2/1/2007
State Street Target Retirement 2020 K 11.23 -0.88 4.44 5.89 5.76 — 5.51 9/30/2014
JPMorgan SmartRetirement 2020 R5 9.67 -1.36 3.13 4.87 4.93 7.73 5.76 5/15/2006
TIAA-CREF Lifecycle 2020 Institutional 12.61 -0.88 4.61 5.88 5.87 8.43 5.43 1/17/2007
Principal LifeTime 2020 Institutional 12.48 -0.59 4.69 5.93 5.55 8.18 5.80 3/1/2001
Wells Fargo Target 2020 R6 9.49 -1.27 3.44 4.94 4.64 5.92 5.06 6/30/2004
Average annualized return as of June 30, 2020
Appendix: Absolute performance results
The performance data shown represent past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance. Some funds assess purchase, redemption, and/or account maintenance fees. The performance data shown do not reflect deduction of these fees. If they did, performance would be lower. Details on these fees and adjusted performance figures can be found in the fund detail section.
Data from Vanguard and Morningstar.
For institutional and sophisticated investors only. Not for public distribution.
20
A P P E N D I X
3 months
Year
to date 1 year 3 years 5 years 10 years
Since
inception
Inception
date
Fund
Vanguard Target Retirement 2025 Fund 13.20 -1.46 4.82 6.33 6.29 8.88 6.67 10/27/2003
Target Retirement 2025 Composite Index 13.22 -0.87 5.56 6.75 6.61 9.16 — —
Lipper Target 2025 Funds Average 11.63 -1.66 3.69 5.30 5.25 7.66 — —
Fidelity Freedom 2025 13.59 -2.12 4.49 5.79 6.00 8.34 6.31 11/6/2003
Fidelity Freedom Index 2025 Investor 12.36 -0.66 5.55 6.82 6.42 8.20 7.87 10/2/2009
T. Rowe Price Retirement 2025 16.18 -2.25 4.07 6.21 6.48 9.50 6.98 2/27/2004
American Funds 2025 Trgt Date Retire R5 12.03 0.56 6.63 6.96 6.84 9.78 6.14 2/1/2007
JPMorgan SmartRetirement 2025 R5 11.74 -2.77 2.51 5.06 5.22 8.45 5.57 7/31/2007
TIAA-CREF Lifecycle 2025 Institutional 14.14 -1.63 4.29 6.07 6.12 9.03 5.53 1/17/2007
BlackRock LifePath Index 2025 K 11.83 -0.76 5.29 6.29 6.15 — 6.44 5/31/2011
State Street Target Retirement 2025 K 13.59 -0.59 5.78 6.97 6.70 — 6.44 9/30/2014
Principal LifeTime 2025 Institutional 14.07 -1.67 4.23 6.15 5.85 8.64 5.62 2/29/2008
Wells Fargo Target 2025 R6 11.00 -2.75 2.52 4.98 4.89 6.83 4.30 6/29/2007
Vanguard Target Retirement 2030 Fund 14.58 -2.33 4.40 6.42 6.47 9.37 6.48 6/7/2006
Target Retirement 2030 Composite Index 14.53 -1.78 5.10 6.82 6.78 9.64 — —
Lipper Target 2030 Funds Average 13.41 -2.68 3.26 5.50 5.54 8.07 — —
Fidelity Freedom 2030 15.37 -3.07 4.31 6.12 6.49 8.89 6.80 10/17/1996
Fidelity Freedom Index 2030 Investor 14.11 -1.71 5.21 7.22 7.01 8.79 8.40 10/2/2009
T. Rowe Price Retirement 2030 17.47 -2.90 3.77 6.39 6.76 10.06 8.92 9/30/2002
American Funds 2030 Trgt Date Retire R5 13.93 -0.46 6.36 7.48 7.37 10.48 6.64 2/1/2007
JPMorgan SmartRetirement 2030 R5 13.34 -4.23 1.68 5.23 5.44 8.96 6.24 5/15/2006
TIAA-CREF Lifecycle 2030 Institutional 15.71 -2.38 4.08 6.27 6.36 9.57 5.58 1/17/2007
BlackRock LifePath Index 2030 K 13.73 -2.50 4.23 6.31 6.36 — 6.74 5/31/2011
State Street Target Retirement 2030 K 15.25 -0.33 6.83 7.58 7.23 — 6.95 9/30/2014
Principal LifeTime 2030 Institutional 15.55 -2.55 4.01 6.29 6.02 9.00 5.99 3/1/2001
Wells Fargo Target 2030 R6 12.60 -4.06 1.70 4.96 5.16 7.68 5.83 6/30/2004
Vanguard Target Retirement 2035 Fund 15.90 -3.24 3.90 6.45 6.62 9.84 7.18 10/27/2003
Target Retirement 2035 Composite Index 15.85 -2.72 4.59 6.86 6.94 10.12 — —
Lipper Target 2035 Funds Average 15.60 -3.73 2.99 5.81 5.94 8.82 — —
Fidelity Freedom 2035 17.80 -4.75 3.50 6.08 6.66 9.32 6.66 11/6/2003
Fidelity Freedom Index 2035 Investor 16.69 -3.61 4.11 7.25 7.28 9.33 8.86 10/2/2009
T. Rowe Price Retirement 2035 18.65 -3.36 3.61 6.51 6.94 10.43 7.36 2/27/2004
American Funds 2035 Trgt Date Retire R5 17.08 -1.20 6.62 8.17 8.02 10.89 6.91 2/1/2007
JPMorgan SmartRetirement 2035 R5 15.74 -5.33 1.50 5.13 5.48 9.35 5.85 7/31/2007
TIAA-CREF Lifecycle 2035 Institutional 17.27 -3.19 3.80 6.42 6.58 10.09 5.76 1/17/2007
BlackRock LifePath Index 2035 K 15.55 -4.10 3.23 6.31 6.57 — 7.01 5/31/2011
State Street Target Retirement 2035 K 16.57 -0.95 6.50 7.67 7.40 — 7.15 9/30/2014
Principal LifeTime 2035 Institutional 17.13 -3.21 3.61 6.60 6.18 9.39 5.97 2/29/2008
Wells Fargo Target 2035 R6 13.96 -5.47 0.63 4.88 5.28 8.33 4.76 6/29/2007
Average annualized return as of June 30, 2020
Appendix: Absolute performance results
The performance data shown represent past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance. Some funds assess purchase, redemption, and/or account maintenance fees. The performance data shown do not reflect deduction of these fees. If they did, performance would be lower. Details on these fees and adjusted performance figures can be found in the fund detail section.
Data from Vanguard and Morningstar.
For institutional and sophisticated investors only. Not for public distribution.
A P P E N D I X
3 months
Year
to date 1 year 3 years 5 years 10 years
Since
inception
Inception
date
Fund
Vanguard Target Retirement 2040 Fund 17.29 -4.11 3.46 6.50 6.76 10.08 6.77 6/7/2006
Target Retirement 2040 Composite Index 17.17 -3.69 4.04 6.88 7.08 10.37 — —
Lipper Target 2040 Funds Average 16.69 -4.73 2.24 5.62 5.88 8.75 — —
Fidelity Freedom 2040 19.06 -5.56 2.97 5.87 6.56 9.34 4.13 9/6/2000
Fidelity Freedom Index 2040 Investor 18.07 -4.55 3.59 7.09 7.20 9.35 8.87 10/2/2009
T. Rowe Price Retirement 2040 19.50 -3.77 3.42 6.63 7.08 10.64 9.16 9/30/2002
American Funds 2040 Trgt Date Retire R5 18.45 -1.71 6.45 8.34 8.19 11.05 7.02 2/1/2007
JPMorgan SmartRetirement 2040 R5 17.08 -6.28 0.96 5.16 5.61 9.52 6.52 5/15/2006
TIAA-CREF Lifecycle 2040 Institutional 18.77 -3.94 3.56 6.53 6.73 10.34 5.98 1/17/2007
BlackRock LifePath Index 2040 K 17.25 -5.69 2.20 6.24 6.71 — 7.24 5/31/2011
State Street Target Retirement 2040 K 17.60 -1.74 5.90 7.58 7.39 — 7.17 9/30/2014
Principal LifeTime 2040 Institutional 18.07 -4.09 3.17 6.62 6.30 9.61 6.17 3/1/2001
Wells Fargo Target 2040 R6 15.20 -6.97 -0.51 4.59 5.27 8.75 6.38 6/30/2004
Vanguard Target Retirement 2045 Fund 18.70 -4.90 2.97 6.41 6.79 10.10 7.52 10/27/2003
Target Retirement 2045 Composite Index 18.49 -4.58 3.52 6.79 7.10 10.38 — —
Lipper Target 2045 Funds Average 17.87 -5.44 1.91 5.74 6.08 9.21 — —
Fidelity Freedom 2045 19.10 -5.63 2.90 5.85 6.54 9.41 5.77 6/1/2006
Fidelity Freedom Index 2045 Investor 18.06 -4.57 3.56 7.08 7.20 9.42 8.93 10/2/2009
T. Rowe Price Retirement 2045 20.19 -4.21 3.22 6.61 7.12 10.66 7.55 5/31/2005
American Funds 2045 Trgt Date Retire R5 18.90 -1.74 6.54 8.46 8.33 11.15 7.07 2/1/2007
JPMorgan SmartRetirement 2045 R5 18.15 -7.07 0.43 5.00 5.55 9.48 6.05 7/31/2007
TIAA-CREF Lifecycle 2045 Institutional 20.10 -4.72 3.20 6.48 6.80 10.35 5.53 11/30/2007
BlackRock LifePath Index 2045 K 18.53 -6.68 1.52 6.22 6.81 — 7.41 5/31/2011
State Street Target Retirement 2045 K 18.68 -2.59 5.23 7.49 7.43 — 7.19 9/30/2014
Principal LifeTime 2045 Institutional 18.90 -4.81 2.69 6.57 6.32 9.79 6.12 2/29/2008
Wells Fargo Target 2045 R6 16.07 -7.75 -1.12 4.51 5.34 8.99 5.08 6/29/2007
Vanguard Target Retirement 2050 Fund 18.67 -4.90 3.02 6.42 6.79 10.10 6.81 6/7/2006
Target Retirement 2050 Composite Index 18.49 -4.58 3.52 6.79 7.10 10.38 — —
Lipper Target 2050 Funds Average 18.00 -5.66 1.66 5.63 6.00 9.06 — —
Fidelity Freedom 2050 19.10 -5.57 2.94 5.86 6.55 9.48 5.63 6/1/2006
Fidelity Freedom Index 2050 Investor 18.09 -4.56 3.58 7.09 7.19 9.51 8.98 10/2/2009
T. Rowe Price Retirement 2050 20.21 -4.16 3.23 6.62 7.13 10.66 6.55 12/29/2006
American Funds 2050 Trgt Date Retire R5 19.15 -1.77 6.66 8.57 8.42 11.19 7.10 2/1/2007
JPMorgan SmartRetirement 2050 R5 18.09 -7.11 0.41 5.02 5.54 9.50 6.06 7/31/2007
TIAA-CREF Lifecycle 2050 Institutional 20.31 -4.84 3.14 6.50 6.87 10.40 5.54 11/30/2007
BlackRock LifePath Index 2050 K 19.10 -7.10 1.23 6.15 6.80 — 7.52 5/31/2011
State Street Target Retirement 2050 K 19.18 -2.86 5.12 7.39 7.36 — 7.09 9/30/2014
Principal LifeTime 2050 Institutional 19.64 -5.27 2.40 6.60 6.37 9.93 6.02 3/1/2001
Wells Fargo Target 2050 R6 16.53 -8.40 -1.67 4.31 5.28 8.99 5.07 6/29/2007
Appendix: Absolute performance results
Average annualized return as of June 30, 2020
The performance data shown represent past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance. Some funds assess purchase, redemption, and/or account maintenance fees. The performance data shown do not reflect deduction of these fees. If they did, performance would be lower. Details on these fees and adjusted performance figures can be found in the fund detail section.
Data from Vanguard and Morningstar.
For institutional and sophisticated investors only. Not for public distribution.
22
A P P E N D I X
3 months
Year
to date 1 year 3 years 5 years 10 years
Since
inception
Inception
date
Fund
Vanguard Target Retirement 2055 Fund 18.64 -4.95 2.95 6.40 6.77 — 9.55 8/18/2010
Target Retirement 2055 Composite Index 18.49 -4.58 3.52 6.79 7.10 10.38 — —
Lipper Target 2055+ Funds Average 18.37 -5.77 1.72 5.77 6.16 9.27 — —
Fidelity Freedom 2055 19.19 -5.56 3.03 5.88 6.55 — 7.45 6/1/2011
Fidelity Freedom Index 2055 Investor 18.07 -4.53 3.56 7.09 7.20 — 7.64 6/1/2011
T. Rowe Price Retirement 2055 20.14 -4.34 3.05 6.54 7.08 10.63 6.52 12/29/2006
American Funds 2055 Trgt Date Retire R5 19.17 -1.76 6.64 8.56 8.40 11.18 10.25 2/1/2010
JPMorgan SmartRetirement 2055 R5 18.09 -7.10 0.48 5.02 5.56 — 8.53 1/31/2012
TIAA-CREF Lifecycle 2055 Institutional 20.51 -4.97 3.07 6.50 6.92 — 7.88 4/29/2011
BlackRock LifePath Index 2055 K 19.14 -7.16 1.22 6.16 6.82 — 7.65 5/31/2011
State Street Target Retirement 2055 K 19.09 -2.92 5.01 7.40 7.38 — 7.11 9/30/2014
Principal LifeTime 2055 Institutional 19.93 -5.81 2.01 6.50 6.37 9.87 6.13 2/29/2008
Wells Fargo Target 2055 R6 16.58 -8.49 -1.81 4.29 5.25 — 6.80 7/1/2011
Vanguard Target Retirement 2060 Fund 18.61 -4.95 2.95 6.39 6.76 — 9.16 1/19/2012
Target Retirement 2060 Composite Index 18.49 -4.58 3.52 6.79 7.10 — — —
Lipper Target 2055+ Funds Average 18.37 -5.77 1.72 5.77 6.16 9.27 — —
Fidelity Freedom 2060 19.05 -5.62 3.00 5.85 6.52 — 6.73 8/5/2014
Fidelity Freedom Index 2060 Investor 18.06 -4.60 3.52 7.09 7.19 — 6.94 8/5/2014
T. Rowe Price Retirement 2060 20.18 -4.33 3.07 6.56 7.09 — 6.57 6/23/2014
American Funds 2060 Trgt Date Retire R5 19.15 -1.83 6.62 8.54 8.40 — 8.15 3/27/2015
JPMorgan SmartRetirement 2060 R5 17.96 -7.22 0.26 5.03 — — 7.11 8/31/2016
TIAA-CREF Lifecycle 2060 Institutional 20.68 -5.04 3.03 6.52 6.97 — 7.07 9/26/2014
BlackRock LifePath Index 2060 K 19.21 -7.10 1.27 6.20 — — 10.23 2/29/2016
State Street Target Retirement 2060 K 18.98 -2.95 4.99 7.37 7.34 — 7.08 9/30/2014
Principal LifeTime 2060 Institutional 20.12 -6.06 1.83 6.43 6.32 — 8.14 3/1/2013
Wells Fargo Target 2060 R6 16.68 -8.37 -1.66 4.31 5.38 — 5.37 6/30/2015
Vanguard Target Retirement 2065 Fund 18.59 -5.03 2.84 — — — 6.17 7/12/2017
Target Retirement 2065 Composite Index 18.49 -4.58 3.52 6.79 — — — —
Lipper Target 2055+ Funds Average 18.37 -5.77 1.72 5.77 6.16 9.27 — —
Fidelity Freedom®
2065 19.09 -5.61 2.90 — — — 2.87 6/28/2019
Fidelity Freedom®
Index 2065 Investor 18.11 -4.54 3.65 — — — 3.62 6/28/2019
Principal LifeTime 2065 Institutional 20.50 -5.98 1.85 — — — 5.73 9/6/2017
Appendix: Absolute performance results
Average annualized return as of June 30, 2020
3
months
Year
to date
1
year
3
years
5
years
10
years
Since
inception
Inception
date
Fund
Vanguard Total Bond Market Index Fund Institutional Shares 2.98 6.36 8.98 5.36 4.33 3.79 5.27 09/18/1995
Vanguard Total International Bond Index Fund Institutional Shares 2.20 2.36 4.08 5.01 4.46 — 4.25 05/31/2013
Vanguard Total Stock Market Index Fund Institutional Shares 22.10 -3.38 6.47 10.04 10.03 13.74 7.76 07/07/1997
Vanguard Total International Stock Index Fund Institutional Shares 18.12 -10.59 -4.07 1.12 2.45 — 3.74 11/29/2010
The performance data shown represent past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance. Some funds assess purchase, redemption, and/or account maintenance fees. The performance data shown do not reflect deduction of these fees. If they did, performance would be lower. Details on these fees and adjusted performance figures can be found in the fund detail section.
Data from Vanguard and Morningstar.
22 For institutional and sophisticated investors only. Not for public distribution.
Notes
For institutional and sophisticated investors only. Not for public distribution.
24
Notes
For institutional and sophisticated investors only. Not for public distribution.
Important information
For more information, visit institutional.vanguard.com for Vanguard funds and for non-Vanguard funds offered through Vanguard Brokerage
Services® to obtain a prospectus, or if available, a summary prospectus. Visit our website, or contact your broker to obtain a prospectus for
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read and consider it carefully before investing.
All investing is subject to risk, including the possible loss of the money you invest.
Investments in target-date 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
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Investments in bonds are subject to interest rate, credit, and inflation risk. Investments in stocks or bonds issued by non-U.S. companies are subject
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U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations.
Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest.
Diversification does not ensure a profit or protect against a loss in a declining market.
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Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing. The collective trust
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The Prime Money Market Fund is only available to retail investors (natural persons). You could lose money by investing in the fund. Although the fund
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shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or
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Morningstar data © 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content
providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. All
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London Stock Exchange Group companies include FTSE International Limited ("FTSE"), Frank Russell Company ("Russell"), MTS Next Limited
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companies and are used by FTSE, MTS, FTSE TMX and Russell under license. All information is provided for information purposes only. No
responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of
this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation
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for any particular purpose to which they might be put.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such
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The Dow Jones UBS Commodity IndexSM is a product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME"), and
has been licensed for use. "Dow Jones®, Dow Jones UBS Commodity IndexSM and "Dow Jones Indexes" are service marks of Dow Jones Trademark
Holdings, LLC ("Dow Jones”) [have been licensed to CME] and have been [sub]licensed for use for certain purposes by The Vanguard Group, Inc.
The Vanguard Group Inc.'s Vanguard Fund(s) based on the Dow Jones UBS Commodity IndexSM are not sponsored, endorsed, sold or promoted by
Dow Jones, CME or their respective affiliates and Dow Jones, CME and their respective affiliates make no representation regarding the advisability of
investing in such product(s).
Center for Research in Security Prices, LLC (CRSP®) and its third-party suppliers have exclusive proprietary rights in the CRSP® Index Data, which
has been licensed for use by Vanguard but is and shall remain valuable intellectual property owned by, and/or licensed to, CRSP®. The Vanguard
Funds are not sponsored, endorsed, sold or promoted by CRSP®, The University of Chicago, or The University of Chicago Booth School of Business
and neither CRSP®, The University of Chicago, or The University of Chicago Booth School of Business, make any representation regarding the
advisability of investing in the Vanguard Funds.
Please remember that all investments involve some risk. Be aware that fluctuations in the financial markets and other factors may cause declines in
the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide
you with a given level of income.
Past performance is not a guarantee of future returns.
For institutional and sophisticated investors only. Not for public distribution.
26
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. BARCLAYS® is a trademark and service mark of Barclays Bank Plc,
used under license. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL") (collectively, "Bloomberg"), or
Bloomberg's licensors own all proprietary rights in the Bloomberg Barclays Indices.
The products are not sponsored, endorsed, issued, sold or promoted by “Bloomberg or Barclays”. Bloomberg and Barclays make no representation
or warranty, express or implied, to the owners or purchasers of the products or any member of the public regarding the advisability of investing in
securities generally or in the products particularly or the ability of the Bloomberg Barclays Indices to track general bond market performance. Neither
Bloomberg nor Barclays has passed on the legality or suitability of the products with respect to any person or entity. Bloomberg’s only relationship to
Vanguard and the products are the licensing of the Bloomberg Barclays Indices which are determined, composed and calculated by BISL without
regard to Vanguard or the products or any owners or purchasers of the products. Bloomberg has no obligation to take the needs of the products or
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Bloomberg nor Barclays has any obligation or liability in connection with the administration, marketing or trading of the products.
Target Income Composite Index: An index derived by applying the fund’s target asset allocation to the results of the following benchmarks: for
international stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2,
2013, and the FTSE Global All Cap ex U.S. Index thereafter; for emerging-market stocks, the Select Emerging Markets Index through August 23,
2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the FTSE Global
All Cap ex U.S. Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009, and the
Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter, as well as the Bloomberg Barclays U.S. Treasury Inflation Protected Securities
Index through June 2, 2013, and the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index thereafter; for short-term
reserves, the Citigroup Three-Month Treasury Bill Index through June 2, 2013; for international bonds, the Bloomberg Barclays Global Aggregate ex-
USD Float Adjusted RIC Capped Index; and for U.S. stocks, the Dow Jones U.S. Total Stock Market Index (formerly known as the Dow Jones
Wilshire 5000 Index) through April 22, 2005, the MSCI U.S. Broad Market Index through June 2, 2013, and the CRSP U.S. Total Market Index
thereafter. International stock benchmark returns are adjusted for withholding taxes.
Target 2015 Composite Index: An index derived by applying the fund’s target asset allocation to the results of the following benchmarks: for
international stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2,
2013, and the FTSE Global All Cap ex U.S. Index thereafter; for emerging-market stocks, the Select Emerging Markets Index through August 23,
2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the FTSE Global
All Cap ex U.S. Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009, and the
Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter, as well as the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities
Index through June 2, 2013, and the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index thereafter; for
international bonds, the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index; and for U.S. stocks, the Dow Jones U.S.
Total Stock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) through April 22, 2005, the MSCI U.S. Broad Market Index through
June 2, 2013, and the CRSP U.S. Total Market Index thereafter.
Target 2020, 2030, 2040, and 2050 Composite Indexes: Indexes derived by applying the fund’s target asset allocation to the results of the following
benchmarks: for international stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index
through June 2, 2013, and the FTSE Global All Cap ex U.S. Index thereafter; for emerging-market stocks, the Select Emerging Markets Index through
August 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the
FTSE Global All Cap ex U.S. Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009, and
the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter; for international bonds, the Bloomberg Barclays Global Aggregate ex-USD
Float Adjusted RIC Capped Index; and for U.S. stocks, the MSCI U.S. Broad Market Index through June 2, 2013, and the CRSP U.S. Total Market
Index thereafter. International stock benchmark returns are adjusted for withholding taxes.
Target 2025, 2035, and 2045 Composite Indexes: Indexes derived by applying the fund’s target asset allocation to the results of the following
benchmarks: for international stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index
through June 2, 2013, and the FTSE Global All Cap ex U.S. Index thereafter; for emerging-market stocks, the Select Emerging Markets Index through
August 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the
FTSE Global All Cap ex U.S. Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009, and
the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter; for international bonds, the Bloomberg Barclays Global Aggregate ex-USD
Float Adjusted RIC Capped Index; and for U.S. stocks, the Dow Jones U.S. Total Stock Market Index (formerly known as the Dow Jones Wilshire
5000 Index) through April 22, 2005, the MSCI U.S. Broad Market Index through June 2, 2013, and the CRSP U.S. Total Market Index thereafter.
International stock benchmark returns are adjusted for withholding taxes.
Target 2055 Composite Index: An index derived by applying the fund’s target asset allocation to the results of the following benchmarks: for
international stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2,
2013, and the FTSE Global All Cap ex U.S. Index thereafter; for emerging-market stocks, the MSCI Emerging Markets Index through December 15,
2010, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the FTSE Global All Cap ex U.S. Index thereafter; for U.S. bonds, the Bloomberg
Barclays U.S. Aggregate Float Adjusted Index; for international bonds, the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC
Capped Index beginning June 3, 2013; and for U.S. stocks, the MSCI U.S. Broad Market Index through June 2, 2013, and the CRSP U.S. Total
Market Index thereafter. International stock benchmark returns are adjusted for withholding taxes.
Important information
For institutional and sophisticated investors only. Not for public distribution.
Important information
Target 2060 Composite Index: An index derived by applying the fund’s target asset allocation to the results of the following benchmarks: for
international stocks of developed markets, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the FTSE Global All Cap ex U.S. Index
thereafter; for emerging market stocks, the MSCI ACWI ex USA IMI Index through June 2, 2013, and the FTSE Global All Cap ex U.S. Index
thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Float Adjusted Index; for international bonds, the Bloomberg Barclays Global
Aggregate ex-USD Float Adjusted RIC Capped Index beginning June 3, 2013; and for U.S. stocks, the MSCI U.S. Broad Market Index through
June 2, 2013, and the CRSP U.S. Total Market Index thereafter. International stock benchmark returns are adjusted for withholding taxes.
Target 2065 Composite Index: An index derived by applying the fund’s target asset allocation to the results of the following benchmarks: the FTSE
Global All Cap ex U.S. Index for international stocks, the Bloomberg Barclays U.S. Aggregate Float Adjusted Index for U.S. bonds, the Bloomberg
Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index for international bonds, and the CRSP U.S. Total Market Index for U.S. stocks.
International stock benchmark returns are adjusted for withholding taxes.
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