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Vanguard Target Retirement 2035 Fund Overview

Vanguard Target Retirement 2035 Fund (VTTHX) is an actively managed Allocation Target-Date 2035 fund. Vanguard launched the fund in 2003.

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2035 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

About Vanguard Target Retirement 2035 Fund (VTTHX)

There are 4 members of the management team with an average tenure of 5.87 years: Michael Roach (2023), Walter Nejman (2013), Aurélie Denis (2023), Roger Aliaga-Diaz (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 5 primary benchmarks: MSCI US Broad Market GR USD index with a weighting of 100%, FTSE Global All Cap ex US TR USD index with a weighting of 27%, CRSP US Total Market TR USD index with a weighting of 41%, Bloomberg Gbl Agg xUSD Fl Aj RIC TR HUSD index with a weighting of 9% and Bloomberg US Agg Float Adj TR USD index with a weighting of 22%. Vanguard Target Retirement 2035 Fund has 6 securities in its portfolio. The top 10 holdings constitute 99.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Vanguard Target Retirement 2035 Fund is part of the Allocation global asset class and is within the Allocation fund group. Vanguard Target Retirement 2035 Fund has 36.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 40.0%. There is 26.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 30.1% (19.9% domestic bond, 10.2% foreign bond and 0.0% convertible bond). Vanguard Target Retirement 2035 Fund has 3.3% of the portfolio in cash.

Assets Under Management

The fund has $130 billion in total assets, which is above the $1 billion average for the Target-Date 2035 category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

VTTHX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Target Retirement 2035 Fund expense ratio is low compared to funds in the Target-Date 2035 category. Vanguard Target Retirement 2035 Fund has an expense ratio of 0.08%, which is 88% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Target Retirement 2035 Fund has a portfolio turnover rate of 6%, indicating that holds its assets around 0.2 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2035 category.

Recently, in the month of June 2026, Vanguard Target Retirement 2035 Fund returned -0.1%, which earned it a grade of F, as the Target-Date 2035 category had an average return of 0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Vanguard Target Retirement 2035 Fund has a trailing yield of 2.27%, which is below the 2.30% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Vanguard Target Retirement 2035 Fund Grades

Year to date, the fund has returned 8.5%, 0.5 percentage points better than the category, which translates into a grade of B. The fund has returned 17.6% over the past year (grade of B), 14.8% over the past three years (grade of B) and 7.6% per year over the past five years (grade of A) and 10.0% per year over the past 10 years (grade of B).

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