Vanguard attaches a more tax-efficient ETF to an existing mutual fund. Then the ETF siphons appreciated stocks out of the mutual fund without incurring taxes, often using heartbeat trades. It’s referred to as a “tax dialysis machine.” Vanguard patented this structure until 2023, keeping com...
the other two are bond funds and, looking at the percentage allocations, we also see that the overall recommendation is for 70% Stocks and 30% bonds. So far so good. 70/30 (VTSAX/VBTLX) is just about what I would recommend to this particular friend given what I know of her ...