My wife moved her Roth IRA from Chase (high fees) to Vanguard, putting all funds in VTIVX, about 6 months ago. We felt good about this decision to get away from the high fees, but I have been disappointed in the funds growth in comparison to my own Roth IRA which I think is more aggressive. She doesn't need the money for about 25 years. We would like to move it to something more aggressive within Vanguard. Any suggestions? At the very least, I was thinking of splitting the funds between the three other Vanguard funds that make up the VTIVX, as this will lower fees a little, but I imagine performance will be similar.
1.
I'm not sure you understand the purpose of a Target Retirement fund. TR Funds are 'funds of funds;' the whole point is to offer maximum diversification at minimal cost and
maximum simplicity. Obviously you can break the fund up into its constituents and allocate them accordingly, but this is a) more complicated and b) subject to your personal idea of appropriate allocation. The TR funds are allocated according to Vanguard's idea of appropriate allocation. They are perfect for a 'hands off' investor, which is to say, most investors.
2.
Judging a fund by its performance for anything less than five years in relatively silly. Furthermore, judging an TR fund at this time frame is even less meaningful as its not actively managed and hence
you're really only judging the allocation (stocks vs. bonds) which has nothing to do with "performance" and everything to do with your plan and level of risk. Do you have an IPS? If so, what does it say?
3.
Really it sounds like you're saying you want a more aggressive allocation. Is this your call to make? And finally, what would that look like? VTIVX is currently 90% equities and 10% bonds (!), so you want a 100% equity allocation?
4.
Judging by the above, I would not move the money out of the TR fund and would focus more on saving and keeping costs low.
Also, are there fees for moving between funds within Vanguard?
There are not. However there are short term trading penalties which you should be aware of.