Vanguard’s Approach to Target-Date Fund Rebalancing
Assessing whether a target-date fund (TDF) series is performing as expected can be a difficult undertaking. Each TDF series features multiple vintages, each with its own asset allocation. And each TDF provider can take a different approach to glide-path construction, sub-asset allocation, implementation, rebalancing methodology, and benchmarking. Furthermore, the investment time horizon of a TDF