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Description:

From the Vanguard Website:

Investment strategy
The fund invests approximately 60% to 65% of its assets in investment-grade corporate, U.S. Treasury, and government agency bonds, as well as mortgage-backed securities. The remaining 35% to 40% of fund assets are invested in common stocks of companies that have a history of above-average dividends or expectations of increasing dividends.

Investment policy
• The fund may invest, to a limited extent, in stock futures and options contracts, which are traditional types of derivatives.
• The fund may temporarily depart from its normal investment policiesâ€"for instance, by allocating substantial assets to cash investmentsâ€"in response to extraordinary market, economic, political, or other conditions. In doing so, the fund may suceed in avoiding losses but may otherwise fail to achieve its investment objective.
• The fund may invest up to 20% of its equity assets in securities of foreign companies. It also may invest in bonds of foreign issuers, but all such securities must be denominated in U.S. dollars.

Morningstar gives the fund 5 stars

The fund ranks in the top 5% of all the funds in its category of conservative allocation funds.

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