Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.
Products May 11, 2011
Vanguard Reduces Investment Minimums on Retirement Funds
Vanguard is reducing the minimum investment requirement from $3,000 to $1,000 for the 12 funds in its index-based Target Retirement Fund series.
Reported by Rebecca Moore
Previously, only Vanguard STAR Fund, a balanced fund comprising 11 actively managed funds, was available to those with $1,000 to invest.
In addition, Vanguard announced it is standardizing the minimum investment requirement for Investor Shares of nearly all Vanguard funds at $3,000. Previously, investment requirements varied by fund, and ranged from $3,000 to $25,000.
A news release said this change reduces the minimum for 15 Vanguard funds, including some of Vanguard’s oldest and largest actively managed funds, such as the $59 billion Vanguard Wellington Fund, the $38 billion Vanguard Windsor II Fund, and the $22 billion Vanguard Health Care Fund.