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Products May 11, 2011
Vanguard Reduces Investment Minimums on Retirement Funds
May 11, 2011 (PLANSPONSOR.com) - 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–$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.