Tier 3: Other funds

Though you can build a diversified portfolio from Tiers 1 and 2, Tier 3 funds are available should you wish to supplement your portfolio or invest for a specific objective. You will be responsible for monitoring the holdings to ensure that they are still in line with your objectives.

A note about risk
All investing is subject to risk, including the possible loss of the money you invest. Each LifeStrategy® Fund invests in several broadly diversified Vanguard funds and is subject to the risks associated with those underlying funds. While U.S. Treasury or government agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. Although the market values of government securities are not guaranteed and may fluctuate, these securities are guaranteed as to the timely payment of principal and interest. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks. Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility. Diversification does not ensure a profit or protect against a loss.