Under the retirement plans, there are four different investment options. The most common is the Traditional IRA with a moderate cost-to-allocation, growth-oriented income-optimized plan, and the Domestic Market Select Plan.
These plans allow for investing in a host of domestic equity mutual funds, bond funds, and other actively managed funds. The Domestic Market Select Plan has an average asset-weighted expense ratio of 8.5%, one of the lowest of the actively managed funds.
At the end of each year, Vanguard Retirement Plans offers two investment options that are mandatory for participants. They are the Volatility and the Dollar Cost-Based Equity Funds. Both annual feature fees of $ Vanguard recommends that users invest in only the best performing funds and choose funds with a higher than average yearly percentage of asset-weighted expense ratio. With this guidance, fund buyers can determine their budget for investments in the plans.