VALLEY FORGE, PA — Vanguard plans to introduce a new series of target-date retirement trusts later in 2026 that maintain greater exposure to stocks, giving employers an investment option designed for workers willing and able to accept more market risk in pursuit of long-term growth.
The Vanguard Target Retirement Growth Trusts will expand the investment manager’s workplace retirement lineup through collective investment trusts that hold a higher proportion of equities throughout an investor’s retirement savings period.
Unlike conventional target-date portfolios, which generally reduce stock exposure as participants approach retirement, the new trusts will follow a more equity-oriented allocation strategy while continuing to adjust their investment mix over time.
The approach increases exposure to potential stock market gains but also subjects retirement savings to greater equity-market volatility, including as participants near retirement.
Vanguard said the trusts are intended for employers whose workforce characteristics, retirement objectives and risk tolerance support a more growth-oriented investment strategy.
The new series will use the same underlying investment framework as Vanguard’s existing Target Retirement Funds and Trusts, including diversified portfolios and automatic adjustments to asset allocations based on an investor’s anticipated retirement date.
The primary distinction will be the proportion of assets invested in equities across the investment glide path, which determines how a portfolio’s allocation changes as retirement approaches.
“The Growth Trusts provide plan sponsors with another option within Vanguard’s target-date lineup,” said Lauren Valente, managing director of Vanguard Workplace Solutions.
The expansion reflects growing differentiation within the retirement investment market as employers evaluate whether conventional target-date strategies adequately reflect their employees’ financial circumstances.
Vanguard identified income, savings rates, anticipated retirement income sources and investment risk tolerance as factors that can influence the suitability of different target-date approaches.
The company plans to provide employers with research, evaluation tools and specialized consultation to help determine which retirement investment series best fits their plans.
Vanguard’s existing Target Retirement Funds and Trusts will remain available alongside the new products.
The Growth Trusts are structured as collective investment trusts, investment vehicles commonly used in employer-sponsored retirement plans rather than funds purchased directly by individual retail investors.
The planned introduction follows Vanguard’s launch of Target Retirement Lifetime Income Trusts in late 2025, which expanded its lineup with products designed to help participants convert accumulated retirement savings into income.
Together, the additions broaden the company’s target-date offerings to address different retirement investment priorities, including higher potential portfolio growth and retirement income generation.
Vanguard expects the Target Retirement Growth Trusts to become available before the end of 2026.
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