Just read on finance.yahoo.com that Vanguard will add Total International Bond Index to the target funds (it will comprise 20% of the bond allocation) for diversification. Second, it's dropping the money market fund from the target funds. Third, it's replacing its TIPS fund with a duration over 8 with a short-term TIPS fund with a duration of 2.5. Their research shows that the short-term TIPS fund tracks inflation better and is less interest rate sensitive. I am thrilled. With 20% of VTINX in TIPS, I was afraid of how a rising interest rate environment would create considerable losses in the traditional TIPS fund. Three great moves. The change should occur by the end of the second quarter this year. Comments welcome.