Investment analysis: retirement target date fund analysis

Investment Analysis: Retirement Target Date Fund Analysis
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Vanguard Target Retirement 2050 Fund (VFIFX) fund suits the needs of different investors and for the 30 year period there are adjustments in the asset mix and allocation to maximize wealth creation and reduce the risk of loss. Thus, for the people seeking to retire in 2050, there is exposure to broad market sectors and the funds are managed and tracked against a benchmark. Unlike the index fund that is passive and preferred when investors do not have the time and resources to research on investment, the VFIFX will likely go through various changes with regards to asset composition as the US economy and global economy evolves at a time when there will be increased automation.
The Vanguard Target Retirement 2050 Fund was issued on June 7, 2006. As of March 31, 2020, the fund target retirement average annual returns for the 3 year period is 1.79% compared to 2.19% for the benchmark (Vanguard, 2020). For a hypothetical investment of $ 10,000 on 2010 the fund would be worth $24, 404.42 as of 31st May 2020 (Vanguard, 2020). It charges a low ratio of annual net expenses of 0. 15%. According to Vanguard, the fund's annual expense ratio is 67% lower than the average expense ratio of target-date funds with similar investments. The combination of the index mutual funds and fund and the management style, explains the low expense ratio. In any case, the low costs and high savings rates make a good combination for the Americans seeking to reach their retirement goals.
The Vanguard Target Retirement 2050 Fund seeks to provide a capital ap...