VALLEY FORGE, PA — Vanguard has announced updates to the allocations of its Vanguard STAR Fund (VGSTX), aimed at improving long-term outcomes for investors by rebalancing its equity portfolio and introducing increased flexibility in fixed income investments.
Key changes to the equity portion include the addition of the Vanguard Dividend Growth Fund and Vanguard International Core Fund, while the Vanguard Explorer Fund will be removed. These adjustments aim to achieve better balance across investment styles and reduce overall risk in the equity allocation.
On the fixed income side, the fund will now include the newly created Vanguard STAR Core-Plus Bond Fund (VCPSX). This new bond fund, modeled after Vanguard’s existing Core-Plus Bond Fund, employs a flexible strategy that spans investment-grade, high-yield, and emerging market bonds to capture opportunities for added value. VCPSX will be exclusively available within the Vanguard STAR Fund portfolio and is expected to launch by late Q1 2025.
“For nearly 40 years, the Vanguard STAR Fund has offered a balanced, actively managed portfolio designed for long-term growth and income,” said Dan Reyes, head of Vanguard’s Portfolio Review Department. “These updates reinforce our commitment to providing cost-efficient solutions for long-term investors while positioning the fund for continued success in the future.”
The transition is set to begin in Q1 2025. While the adjustments impact the fund’s allocations, its investment objective and overall strategy will remain the same. The composite benchmark will be updated to align with the changes introduced.
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