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Vanguard - Who Should Invest by Asset Class
Personal Investors

Who Should Invest

Money market portfolios

Who should invest?

  • Investors seeking a stable unit price and interest income.
  • Investors seeking a "parking place" for cash while awaiting opportunities for longer-term investments.

Short-term bond portfolios

Who should invest?

  • Investors seeking a high level of interest income.
  • Investors willing to accept modest fluctuations in unit price.
  • Investors seeking a bond investment to balance the risks of a portfolio containing stocks.

Intermediate-term bond portfolios

Who should invest?

  • Investors seeking a high and relatively stable level of income.
  • Investors willing to accept moderate fluctuations in unit price.
  • Investors seeking a bond investment to balance the risks of a portfolio containing stocks.

Long-term bond portfolios

Who should invest?

  • Investors seeking a high and stable level of interest income.
  • Investors willing to accept significant fluctuations in unit price.
  • Investors seeking a bond investment to balance the risks of a portfolio containing stocks.

Inflation-indexed security portfolios

Who should invest?

  • Investors seeking a bond investment that provides inflation protection.
  • Investors willing to accept some volatility in income distributions and modest fluctuations in unit price.
  • Investors seeking additional portfolio diversification that inflation-indexed securities can offer.

Balanced portfolios

Who should invest?

  • Investors seeking a combination of long-term growth of capital and income from dividends and interest.
  • Investors with a long-term investment horizon (at least 5 years).
  • Investors seeking a simple way to achieve a broadly diversified holding of stocks and fixed-income investments.
  • Investors willing to accept significant flucations in unit price.

Domestic stock portfolios–general

Who should invest?

  • Investors seeking possible dividend income and possible long-term growth of income and capital.
  • Investors with a long-term investment horizon (at least 5 years).
  • Investors willing to accept significant fluctuations in unit price.

Domestic stock portfolios–more aggressive

Who should invest?

  • Investors seeking maximum long-term total return, without significant dividend income.
  • Investors with a long-term investment horizon (more than 5 years).
  • Investors willing to accept wide fluctuations in unit price.

Domestic stock portfolios–sector specific

Who should invest?

  • Investors seeking to complement a well-diversified stock portfolio with an investment in a specific market sector.
  • Investors seeking long-term growth of capital, without significant dividend income.
  • Investors with a long-term investment horizon (5 to 10 years or longer).
  • Investors willing to accept significant fluctuations in unit price.

International/global stock portfolios

Who should invest?

  • Investors seeking to further diversify a portfolio of U.S. securities.
  • Investors seeking long-term growth of capital, without significant dividend income.
  • Investors with a long-term investment horizon (at least 5 years).
  • Investors willing to accept significant fluctuations in unit price.
  • Investors willing to accept the additional risks associated with international investing.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.

*All investments are subject to risk. Investments in bonds are subject to interest rate, credit, and inflation risk. Foreign investing involves additional risks including currency fluctuations and political uncertainty. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.

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