Question

1. Blended Fund

Pick a fund that is blended between stock and bonds. Typically, these blended funds have 30 – 60% in stocks and 30-60% in bonds.

Describe its profile

What is its 10-year historical return?

What is its investment break-down in terms of stocks and bonds?

Answer 1

The fund picked is Vanguard Balanced Index Fund Investor Shares (VBINX)

This index fund offers investors an easy, low-cost way to gain exposure to stocks and bonds. The fund invests roughly 60% in stocks and 40% in bonds by tracking two indexes that represent broad barometers for the U.S. equity and U.S. taxable bond markets. It is a passively managed fund with a low expense ratio of 0.18%.

Its 10-year historical return is 9.80% (compounded annual growth rate)