Target Retirement minimums fall to $1,000; Primecap-run fund minimums also drop, but funds stay closed for now.
Vanguard has lowered the minimum initial investments for nearly 30 of its more popular funds, including its 12 Target Retirement funds and the equity funds subadvised by Primecap Management, according to Securities and Exchange Commission filings made Tuesday. The full list of the funds and their new minimums, which go into effect immediately, is in the table below.
The decision to lower the minimums for Vanguard Primecap
Capital Opportunity's and Primecap's minimum initial investments drop from $25,000 to $3,000. Primecap Core's falls from $10,000 to $3,000. The Primecap-run funds will keep their maximum annual investments of $25,000, though.
Vanguard said it's standardizing its minimum investment levels for the investor share classes of most of its funds at $3,000. In years past, the family has raised and lowered minimums on funds to control asset flows in and out of the funds. Vanguard Health Care
The Target Retirement funds' minimum initial investments drop even lower, from $3,000 to $1,000. Up to now, only Vanguard STAR