Age-Based Aggressive Domestic
How it works
The Age-Based Aggressive Domestic investment option allocates your client’s entire account balance to one domestic equity fund—Vanguard Institutional Total Stock Market Index Fund—until his or her beneficiary reaches age 7.
At age 7, two fixed-income funds are added to the investment mix.
- Vanguard Total Bond Market Index Fund
- Vanguard Short-Term Investment-Grade Fund
At age 10, a stable value fund is added to the portfolio.
- PIMCO Interest Income Fund
FDIC-insured accounts are added when the beneficiary reaches age 15.
As your beneficiary ages, the percentage of the account balance allocated to the fixed-income funds, the stable value fund, and FDIC-insured accounts increases. The percentage allocated to each equity fund decreases.
When your beneficiary reaches age 19, the account has a 10 percent stake in equities, with the remaining balance divided among long-term and short-term fixed-income funds, the stable value fund, and the FDIC-insured accounts.
You and your client should read the Program Description, Part 7, Investment Information, for information about specific risks for the underlying investments in the Age-Based Aggressive Domestic investment option.