Fund Description

The fund invests in a mix of Vanguard mutual funds under an asset allocation strategy targeting about 80% in fixed income and 20% in common stocks. Target allocations are 56% U.S. fixed income, 24% foreign fixed income, 12% U.S. stocks, and 8% foreign stocks. Indirect fixed income holdings include a diversified mix of short-, intermediate-, and long-term U.S. government, agency, and investment-grade corporate bonds; mortgage- and asset-backed securities; and investment-grade foreign bonds issued in non-U.S. dollar currencies, with foreign currency exposure hedged by Vanguard to minimize foreign currency exposure. Indirect stock holdings span U.S. and foreign large-, mid-, and small-cap stocks.