Definition and Investment Strategy
"The Vanguard total return model portfolios seek to provide broad exposure to U.S. and international equities and U.S. and international investment-grade taxable bonds in an asset allocation framework."
Possible best practice: Your CFP® and models typically designed by CFA®s from sponsors
"Generic" model portfolios are often designed by CFA®s employed by sponsors. Your CFP® can and should evaluate models, recommend which model(s) suit you best as well as modify to better meet your goals.
Vanguard ETF Strategic Models Offer:
- Very broad diversification encompassing more than 19,000 global stocks and bonds
- Diversified Index investments that can help alleviate active manager risk in portfolios through lower return variability and low turnover
- ETFs for transparency, low costs and possible tax efficiency
- "Remarkably low costs, with weighted average expense ratios at 0.06%, enabling investors to keep more of their returns."
- Preselected portfolios all the way from 100% equity to 100% fixed at all of the 10% intervals, e.g. 90%-10%, 80%-20% ... 10%-90% and everywhere in between.
A diversified portfolio does not assure a profit or protect against loss in a declining market.
Investors should consider the investment objectives, risks and charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds.