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Target Enrollment 2038/2039

Overview

Unit Price as of 06/14/2024 $13.14
Change -$0.04 -0.30%
Expense Ratio as of 06/14/2024 0.53%
Inception Date 09/16/2022

Investment Objective

The Portfolio seeks to provide capital appreciation and current income consistent with its current asset allocation.

Investment Strategy

The portfolio invests in Vanguard mutual funds using an asset allocation strategy designed to become more conservative over time. The target allocations adjust as your beneficiary approaches the date they are expected to enroll in school or an eligible program. Portfolios are rebalanced on a quarterly basis to incrementally decrease exposure to stocks and increase exposure to bonds; the funds continue to adjust until their allocations match that of the Vanguard Commencement Portfolio. The underlying funds are: Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, Vanguard Total Bond Market II Index Fund, and Vanguard Total International Bond Index Fund.

The fund’s indirect stock holdings are a diversified mix of U.S. and foreign large-, mid-, and small-capitalization stocks. The fund’s indirect bond holdings are a diversified mix of short-, intermediate-, and long-term U.S. government, U.S. agency, and investment-grade U.S. corporate bonds; mortgage-backed and asset-backed securities; and government, agency, corporate, and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar (but hedged by Vanguard to minimize currency exposures).

Through its investment in Vanguard Institutional Total Stock Market Index Fund, the Portfolio indirectly invests in primarily large-capitalization U.S. stocks and, to a lesser extent, mid-,small-, and micro-capitalization U.S. stocks. The Fund holds a broadly diversified collection of securities that, in the aggregate, approximates the total market capitalization of all the U.S. common stocks regularly traded on the New York Stock Exchange and Nasdaq.

Through its investment in Vanguard Total International Stock Index Fund, the Portfolio indirectly invests in international stocks. The Fund employs an indexing investment approach designed to track the performance of the FTSE Global All Cap ex US Index, a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of companies located in developed and emerging markets, excluding the United States. The Fund invests all, or substantially all, of its assets in the common stocks included in its target index.

Through its investment in Vanguard Total Bond Market II Index Fund, the Portfolio also indirectly invests in a broadly diversified collection of securities that, in the aggregate, approximates the Bloomberg Barclays U.S. Aggregate Float Adjusted Index in terms of key risk factors and other characteristics. The Index measures a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States—including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities—all with maturities of more than 1 year. The Fund maintains a dollar-weighted average maturity consistent with that of the Index, which generally ranges between 5 and 10 years.

Through its investment in Vanguard Total International Bond Index Fund, the Portfolio also indirectly invests in government, government agency, corporate, and securitized non-U.S. investment-grade fixed income investments, all issued in currencies other than the U.S. dollar and with maturities of more than 1 year. To minimize currency risk associated with investment in bonds denominated in currencies other than the U.S. dollar, the Fund will attempt to hedge its foreign currency exposure.

Investment Risks

The Portfolio is subject to the risks of the underlying stock funds, which include stock market risk, country/regionalrisk, currency risk, and emerging markets risk, and the risks of the underlying bond funds, which include interest rate risk, income risk, prepayment risk, extension risk, call risk, credit risk, country/regional risk, liquidity risk,currency and currency hedging risk, and derivatives risk. The Portfolio is also subject to investment style risk, Index sampling risk, and nondiversification risk.

Average Annual Returns - Updated Monthly as of 05/31/2024

Name 1 year 3 year 5 year 10 year Since Inception 09/16/2022
Name Target Enrollment 2038/2039 1 year 20.13% 3 year 5 year 10 year Since Inception 09/16/2022 16.68%
Name Vanguard Target Enrollment 2038/2039 Composite**(Benchmark) 1 year 20.84% 3 year 5 year 10 year Since Inception 09/16/2022 17.36%

**Derived by applying the fund’s target asset allocation to the results of the following benchmarks: for U.S. stocks, the CRSP U.S. Total Market Index; for international stocks, the FTSE Global All Cap ex US Index; for U.S. bonds, the Bloomberg U.S. Aggregate Float Adjusted Index; for international bonds, the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged; and for short-term reserves, the FTSE three-month U.S. Treasury Bill Index and the Ryan Labs 3 year GIC Index. International stock benchmark returns are adjusted for withholding taxes.

Annual Investment Returns

Year Ended Target Enrollment 2038/2039
Year Ended 2023 Target Enrollment 2038/2039 19.69%
Year Ended 2022 *** Target Enrollment 2038/2039 1.60%
Year Ended 2021 Target Enrollment 2038/2039
Year Ended 2020 Target Enrollment 2038/2039
Year Ended 2019 Target Enrollment 2038/2039

*** Since inception on 09/16/2022

Historical Prices

06/14/2024 $13.14
06/13/2024 $13.18
06/12/2024 $13.21
06/11/2024 $13.09
06/10/2024 $13.12

Search for more historical price information

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For more information about the Arkansas Brighter Future Direct Plan, call 1.800.587.7301 or click here to obtain a Program Description and Participation Agreement, which includes investment objectives, risks, charges, expenses and other information; read and consider it carefully before making an investment or sending money.

Please Note: Before you invest, consider whether your or the beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state's qualified tuition program. You should also consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state's 529 college savings plan(s), or any other 529 plan, to learn more about those plans' features, benefits, and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Arkansas Brighter Future Direct Plan is a college tuition savings program sponsored by the State of Arkansas and administered by the Arkansas Section 529 Plan Review Committee ("Committee"). Ascensus Broker Dealer Services, LLC, the Program Manager, and its affiliates have overall responsibility for the day-to-day operations, including investment advisory services, recordkeeping, administrative services and marketing of the Arkansas Brighter Future Direct Plan. The Vanguard Group, Inc., serves as Investment Manager for the plan. The Arkansas Brighter Future Direct Plan's Portfolios invest in: (i) mutual funds; or (ii) an FDIC-insured omnibus savings account held in trust by the Committee at Sallie Mae Bank. Except for the Savings Portfolio, investments in the Arkansas Brighter Future Direct Plan are not insured by the FDIC. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the Arkansas Brighter Future Direct Plan Portfolios you choose. Except to the extent of FDIC insurance available for the Savings Portfolio, you could lose all or a portion of your money by investing in the Arkansas Brighter Future Direct Plan, depending on market conditions. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Not FDIC-Insured (except for the Savings Portfolio). No Bank, State or Federal Guarantee. May Lose Value.