Age-Based Options: Moderate
How it works
Age-based investment options automatically reallocate account funds to be weighted less in equity funds and more in fixed-income funds, a stable value fund, and FDIC-insured accounts as your beneficiary approaches college enrollment age.
The Age-Based Moderate investment option allocates 80 percent of your account balance to one domestic equity fund and two international equity funds, and 20 percent of the balance to three fixed-income funds and a stable value fund until your beneficiary reaches age 7.
- Vanguard Institutional Total Stock Market Index Fund
- Vanguard Developed Markets Index Fund
- Vanguard Emerging Markets Stock Index Fund
- Vanguard Total Bond Market Index Fund
- Vanguard Short-Term Investment-Grade Fund
- Vanguard Total International Bond Index Fund
- PIMCO Interest Income Fund
At age 7, the percentage of the account balance allocated to the fixed-income funds and the stable value fund increases, and the FDIC-insured accounts are added to the investment mix.
Equities continue to decrease while fixed-income, stable value, and FDIC-insured holdings increase as your beneficiary ages.
When your beneficiary reaches age 18, the account balance will be divided among long-term and short-term fixed-income funds, the stable value fund, and the FDIC-insured accounts.
Read the Program Description, Part 7, Investment Information, for information about specific risks for the underlying investments in the Age-Based Moderate investment option.