Gen Y investors will be able to take advantage of Vanguard's latest offering, the Vanguard Target Retirement 2055 Fund. Launched Wednesday, August 18, it is a broadly diversified target-date fund designed for the 18-22-year-old crowd.
The fund's expense ratio is 0.19% and the initial allocation is 90% stocks and 10% bonds. At the fund's target date, the allocation will shift to 50% stocks/50% bonds, finally reaching 30% stocks/70% bonds seven years after the target date.
The fund offers exposure to U.S. stocks and bonds, as well as international investments. The 2055 Fund invests in other Vanguard funds, which provide exposure to over 6,000 U.S. stocks and 2,000 international stocks.
