Vanguard Launches Long-Term Retirement Fund
Vanguard is launching a target-date retirement fund for those not intending to retire for another 45 years.
Vanguard Target Retirement 2055 Fund is aimed at people 18 to 22 years old who want to invest for the long term. The broadly diversified fund for young investors expands Vanguard's target-date series to 12 offerings. The expense ratio for the newest offering is expected to be 0.19%, compared with the average expense ratio of 1.17% for similar funds.
The fund's initial allocation will be approximately 90% stocks and 10% bonds, reflecting the age group's ability to assume higher initial equity risk. It will then shift to 50% stocks and 50% bonds when the target date is reached. Seven years after the target date, the expected final allocation will be 30% stocks and 70% bonds.
The fund is designed to "encourage younger investors to participate in the financial markets at an early age, save at aggressive levels, keep an eye on investment costs and maintain a long-term focus," says Vanguard CEO Bill McNabb.
The fund initially will allocate 71.8% to the Vanguard Total Stock Market Index Fund, 10.1% to the Total Bond Market Index Fund, 8.6% to the European Stock Index Fund, 4.8% to the Pacific Stock Index Fund and 4.7% to the Emerging Markets Stock Index Fund.
Jefferson National Offers DFA Funds
Jefferson National is now offering Dimensional Fund Advisors funds as investment options in its flat insurance-fee variable annuities.
The DFA choices are VA Global Bond Portfolio, VA US Targeted Value Portfolio, VA US Large Value Portfolio, VA International Small Portfolio, VA Short-Term Fixed Portfolio and VA International Value Portfolio. For more information, visit www.jeffnat.com.
EGShares Offers India ETF
Emerging Global Shares, an emerging markets ETF provider, has launched the Indxx India Small Cap Exchange Traded Fund. The fund tracks the Indxx India Small Cap Index, which includes 75 publicly traded companies with market capitalizations between $100 million and $2 billion. For more information, visit www.egshares.com.
FaithShares Creates SMA Portfolios
FaithShares Advisors, Oklahoma City, Okla., has launched separately managed accounts that are customized, faith-based investments for individual and institutional investors.
FaithShares also is creating a portfolio for investors who are interested in ethical investing choices but don't want to align their portfolio with a specific religious denomination. For more information, visit www.faithsharesadvisors.com.
Compliance Firm Designs New Software
National Compliance Services Inc. has developed new software to help registered investment advisors prepare Form ADV Part 2 narrative brochures more easily and efficiently.
National Compliance's templates help RIAs create the brochures and comply with the new SEC Form ADV rule. For more information, e-mail [email protected].