Morningstar

Tax-Sheltered Retirement-Saver Portfolios for Vanguard Investors

Sample allocations and holdings for aggressive, moderate, and conservative accumulators.

Photo collage illustration of Amy Arnott with icons and shapes
Securities in This Article
Vanguard International Growth Fund Admiral Shares
(VWILX)
Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares
(VTAPX)
Vanguard Morningstar Small-Cap Value Index Fund Admiral Shares
(VSIAX)
Vanguard Morningstar Mid-Cap Growth Index Fund Admiral Shares
(VMGMX)
Vanguard Short-Term Bond Index Fund Admiral Shares
(VBIRX)

This article mentions funds that have an issuer-initiated rating and/or track a Morningstar Index. For full disclosure information, please refer to the specific funds, which are demarcated with a * symbol, listed below.

Creating in-retirement model portfolios consisting exclusively of Vanguard funds isn’t a heavy lift. Because the firm’s funds have ultralow costs and its lineup is widely diversified, the firm is a natural one-stop shop for many investors.

These model portfolios are designed for Vanguard investors who are still working and investing for retirement. They’re geared toward tax-deferred accounts like IRAs, which means that they’re not managed for tax efficiency on an ongoing basis.

About the Portfolios

To populate the portfolios, I employed no-load, open mutual funds that received Morningstar Medalist Ratings from Morningstar’s analyst team. Most of the funds earned Gold ratings, though I’ve used Silver- and Bronze-rated funds in cases when suitable Gold-rated, no-load options that are accepting new investments are unavailable.

The portfolios are geared toward investors’ tax-sheltered accounts, so I didn’t consider holdings’ tax efficiency when populating the portfolios.

How to Use These Portfolio Examples

My key goal with these portfolios is to depict sound asset-allocation and portfolio management principles rather than to shoot out the lights with performance. That means investors can use them to help size up their own portfolios’ asset allocations and suballocations. Alternatively, investors can use the portfolios as a source of ideas in building out their own portfolios. As with the Bucket portfolios (for retirees), I’ll employ a strategic (that is, long-term and hands-off) approach to asset allocation; I’ll make changes to the holdings only when individual holdings encounter fundamental problems or changes, or if they no longer rate as Morningstar Medalists.

The portfolios vary in their amounts of stock exposure and in turn their risk levels. The Aggressive portfolio is geared toward someone with many years until retirement and a high tolerance/capacity for short-term volatility. The Conservative portfolio is geared toward people who are just a few years shy of retirement. The Moderate portfolio falls between the two in terms of its risk/return potential.

All three portfolios employ a blend of active and passive exposure; I’ve also created streamlined model retirement-saver portfolios for Vanguard investors’ tax-sheltered retirement savings. These portfolios are composed exclusively of Vanguard index funds/exchange-traded funds.

Aggressive Tax-Sheltered Retirement-Saver Portfolio for Vanguard Investors

  • Anticipated Time Horizon to Retirement: 35-40 years
  • Risk Tolerance/Capacity: High
  • Target Stock/Bond Mix: 95/5

Portfolio Allocations

  • 30%: Vanguard Total Stock Market Index VTSAX
  • 10%: Vanguard Equity-Income VEIRX
  • 5%: Vanguard Mid Cap Growth VMGMX
  • 5%: Vanguard Selected Value VASVX
  • 5%: Vanguard Small Cap Value Index VSIAX
  • 20%: Vanguard International Growth VWILX
  • 20%: Vanguard International Value VTRIX
  • 5%: Vanguard Total Bond Market Index VBTLX

Moderate Tax-Deferred Retirement-Saver Portfolio for Vanguard Investors

  • Anticipated Time Horizon to Retirement: 20-25 years
  • Risk Tolerance/Capacity: Moderate
  • Target Stock/Bond Mix: 80/20

Portfolio Allocations

  • 25%: Vanguard Total Stock Market Index VTSAX
  • 8%: Vanguard Equity-Income VEIRX
  • 5%: Vanguard Mid Cap Growth VMGMX
  • 5%: Vanguard Selected Value VASVX
  • 5%: Vanguard Small Cap Value Index VSIAX
  • 17%: Vanguard International Growth VWILX
  • 15%: Vanguard International Value VTRIX
  • 20%: Vanguard Total Bond Market Index VBTLX

Conservative Tax-Deferred Retirement-Saver Portfolio for Vanguard Investors

  • Anticipated Time Horizon to Retirement: 2-5 years
  • Risk Tolerance/Capacity: Low
  • Target Stock/Bond Mix: 50/50

Portfolio Allocations

  • 20%: Vanguard Total Stock Market Index VTSAX
  • 10%: Vanguard Equity-Income VEIRX
  • 5%: Vanguard Small Cap Value Index VSIAX
  • 10%: Vanguard International Growth VWILX
  • 5%: Vanguard International Value VTRIX
  • 30%: Vanguard Total Bond Market Index VBTLX
  • 10%: Vanguard Short-Term Bond Index VBIRX
  • 10%: Vanguard Short-Term Inflation-Protected Securities VTAPX

Editor’s Note: A previous version of this report was published on April 29, 2025.

The author or authors own shares in one or more securities mentioned in this article. Find out about Morningstar’s editorial policies.

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