When Do Vanguard Target Date Funds Adjust Alloc?

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powermega
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When Do Vanguard Target Date Funds Adjust Alloc?

Post by powermega » Wed Feb 11, 2015 12:13 pm

The Vanguard 2035 Target Date Fund currently has the following allocation:
TBM - 13.8%
TIBM - 3.3%
TSM - 58.2%
TISM - 24.7%

The question is, when do these percentages change for the glidepath? Is there a certain time of the year (ex: January, July, etc) where the allocations change? Are the allocations "continually" changing? Vanguard mentions in their general Target Date Fund information that the funds rebalance to stay on their current allocation, but I can't seem to find where it mentions how and when the allocation changes.
Even a stopped clock is right twice a day.


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powermega
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Re: When Do Vanguard Target Date Funds Adjust Alloc?

Post by powermega » Wed Feb 11, 2015 12:28 pm

That's basically the same link I provided above. I swear I've looked over all of that page, and can't find when the allocation change.

The allocation breakdown I listed is "as of 12/31/2014". The question is when will you see different percentages than the ones I listed?
Even a stopped clock is right twice a day.

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Phineas J. Whoopee
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Re: When Do Vanguard Target Date Funds Adjust Alloc?

Post by Phineas J. Whoopee » Wed Feb 11, 2015 2:10 pm

NightFall's link shows a glide-path graph toward the bottom, just above the footnotes.
PJW

lack_ey
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Re: When Do Vanguard Target Date Funds Adjust Alloc?

Post by lack_ey » Wed Feb 11, 2015 2:22 pm

The question being asked is about frequency (daily, weekly, monthly, or perhaps by bands or some other method), which I don't see answered on the informational pages. You could try calling Vanguard and seeing if they'll tell you exactly. It could be one of those low-level operational secrets they won't talk about.

The difference is small and will be effectively buried in the noise, but that doesn't mean there's not an answer as to what exactly they're doing.

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Re: When Do Vanguard Target Date Funds Adjust Alloc?

Post by powermega » Wed Feb 11, 2015 2:46 pm

I just got off the phone with Vanguard about this question...

Vanguard adjusts the allocation at the end of every calendar quarter with an equal adjustment. For example, if the 2016 bond allocation is 2% higher than the 2015 bond allocation, then the bond portion will be increased by 0.5% at the end of each quarter, so that the allocation on 12/31/2015 is correct for the first quarter of 2016.

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rkhusky
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Re: When Do Vanguard Target Date Funds Adjust Alloc?

Post by rkhusky » Wed Feb 11, 2015 3:56 pm

I imagine they randomize the exact date to prevent front-running.

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