Overview

Investment Objective

The Portfolio seeks to provide capital appreciation.

Investment Strategy

The Portfolio invests in two Vanguard stock index funds, resulting in an allocation of 100% of its assets to stocks. The percentages of the Portfolio’s assets allocated to each Fund are:

Vanguard Total Stock Market Index Fund 60%
Vanguard Total International Stock Index Fund 40%

Vanguard Total Stock Market Index Fund employs an indexing investment approach designed to track the performance of the Morningstar US Total Market Index (the “Target Index”), which represents 100% of the investable U.S. stock market, as determined by the index provider. The Target Index includes large-, mid-, small-, and micro-cap stocks regularly traded on the New York Stock Exchange and Nasdaq. Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the stocks that make up the Target Index. The Fund invests by sampling the Target Index, meaning that it holds a range of securities that, in the aggregate, approximates the full Target Index in terms of key risk factors and other characteristics. The Fund may become nondiversified, as defined under the Investment Company Act of 1940, solely as a result of tracking an index. This could occur due to events such as an index rebalance or market movement. A nondiversified fund may invest a greater percentage of its assets in the securities of particular issuers as compared with diversified funds. In addition, the Fund could become concentrated in an industry or group of industries if the Target Index becomes concentrated due to market conditions or the performance of a single or related group of issuers.

Vanguard Total International Stock Index Fund employs an indexing investment approach designed to track the performance of the FTSE Global All Cap ex US Index (the “Target 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. Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the stocks that make up the Target Index. The Fund uses the replication method of indexing, meaning that the Fund generally holds the same stocks as those in its Target Index and in approximately the same proportions.

Investment Risks

The Portfolio is subject to general market risk, investing in equity markets risk, market capitalization risk, index investing risk, nondiversification risk, concentration risk, information technology sector risk, investing in foreign markets risk, investing in emerging markets risk, currency risk, and investments economically tied to China risk. For a description of these risks, see Part II. Plan Investment Options – Risk Factor Glossary

Average Annual Returns

*Note - ID 529 Aggressive Growth Composite reflects monthly re-balancing through February, 28 2013 and daily rebalancing thereafter.
**Consists of the Morningstar US Total Market Index (60%) and the FTSE Global All Cap ex US Index (40%). The Morningstar US Total Market Index replaced the MSCI US Broad Market Index (on June 3, 2013), which had replaced the Dow Jones Wilshire 5000 Index (on April 22, 2005). The FTSE Global All Cap ex US Index replaced the MSCI ACWI ex USA IMI Index (on June 3, 2013), which had replaced the MSCI EAFE + Emerging Markets Index (on December 16, 2010).

Annual Investment Returns

Historical Prices

Brand: idaho

Fund ID: 1013014

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