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Vanguard's LifeStrategy Target-Risk Series Has an Edge

This Gold-rated series features low fees and a straightforward portfolio design.

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Stefan Sayre: Vanguard’s patented approach of straightforward and robust portfolio design, combined with lower fees, gives its Gold-rated LifeStrategy target-risk series an edge.

There are four separate Vanguard LifeStrategy funds in this series. They maintain static equity allocations, which range between 80% and 20%, and hold the balance in bonds. Four highly rated Vanguard index funds underlie each offering. These provide exposure to U.S. and international equity and fixed-income markets. The fixed-income sleeve does have a higher quality and longer duration than most peers, and this may lead the portfolio to lag in credit rallies and in times of rising interest rates. However, we believe it should provide ample protection during periods of market stress.

Stefan Sayre does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.