Tier 2: Self-Directed Funds
Building a more customized portfolio
Our Tier 2 self-directed funds allow you to tailor your retirement portfolio. We offer these funds to serve our participants who take an active interest in investing and have the knowledge to make their own asset allocation decisions—or who are working with a professional financial advisor to help determine their investment strategy.
Tier 2 includes eight index funds administered by Vanguard, a leading global investment management company. They offer you choices across the spectrum of asset classes and volatility so you can customize your portfolio to meet your particular retirement goals and risk tolerance.
The Vanguard stock, bond, and real estate index funds within our Tier 2 offerings have a range of volatility. With an index fund, there is no manager who picks stocks or bonds. Instead, money invested in an index fund is used to buy the securities represented in a particular index. For example, an S&P 500 Index fund invests in each of the stocks in the S&P 500, which are bought and sold in proportion to their representation in the index at any given time.
The RPB Capital Preservation Fund is the least volatile of the Tier 2 funds and is designed to provide plan participants with stability of principal.
Index funds overview
Stock funds
Vanguard Institutional Index Fund
This fund tracks the performance of the S&P 500 Index, which measures the investment return of 500 large companies (as measured by market value) on U.S. exchanges. A moderate- to high-volatility investment, this fund offers a convenient way to match the performance of a substantial portion of the U.S. economy, with participation in every major industry and sector. Read the fact sheet
Vanguard Small-Cap Index Fund
This fund tracks the CRSP U.S. Small Cap Index, which measures the investment return of the smallest 15% of publicly traded U.S. companies (as measured by market value). A high-volatility investment, it is subject to wider swings in prices than those generally experienced by funds focusing on larger U.S. companies. Read the fact sheet
Vanguard Developed Markets Index Fund (International)
This international-focused fund tracks the FTSE Developed All Cap ex-U.S. Index, which measures the investment return of a wide range of foreign companies in developed markets. A very high-volatility investment, it is subject to wider swings in prices than those generally experienced by funds focusing on U.S. companies. Read the fact sheet
Vanguard Emerging Markets Stock Index Fund
This fund tracks the FTSE Emerging Markets All Cap China A Transition Index, which measures the investment return of a wide range of companies in developing economies around the world. A very high-volatility investment, the fund is subject to even wider swings in prices than those generally experienced by funds focusing on companies of any size in the U.S. or other mature markets or economies. In addition to the challenges inherent in less-mature economies, emerging market companies also face above-average risk from political and currency instability. Read the fact sheet
Stock fund details and comparisons
| Vanguard Institutional Index Fund (VIIIX) | Vanguard Small-Cap Index Fund (VSCIX) | Vanguard Developed Markets Index Fund (VTMNX) | Vanguard Emerging Markets Stock Index Fund (VEMIX) | |
|---|---|---|---|---|
Benchmark | S&P 500 Index | CRSP U.S. Small Cap Index | FTSE Developed All Cap ex-U.S. Index | FTSE Emerging Markets All Cap China A Transition Index |
Investment Objective | Capital appreciation | Capital appreciation | Capital appreciation | Capital appreciation |
Asset Allocation | Stocks of large and established U.S. companies | Stocks of small, potentially fast-growing U.S. companies | Stocks of large, mid-sized, and small companies (as measured by market value) in mature economies outside the U.S. | Stocks of large, mid-sized, and small companies in developing economies, such as Brazil, Russia, India, China, and Taiwan |
Who should consider investing? | This fund is often used as the core holding within the stock portion of an index fund portfolio. Investors in this fund may experience significant fluctuations in value or long periods of little or no growth of principal. | This fund is often used as a secondary holding in the U.S. stock portion of an index portfolio. Investors in this fund may experience significant fluctuations in value or long periods of little or no growth of principal. | This fund is often used as the core holding within the international stock portion of an index portfolio. Investors in this fund may experience significant fluctuations in value or long periods of little or no growth of principal. | This fund is often used as a secondary holding in the international stock portion of an index portfolio. Investors in this fund may experience significant fluctuations in value or long periods of little or no growth of principal. |
Fund risk level |
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Fee1 | 0.02% | 0.04% | 0.05% | 0.10% |
- Participants also pay an RPB Administration Fee (0.18%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.04%) which fluctuates slightly over time and is passed onto participants at cost.
Bond funds
Vanguard Short-Term Inflation-Protected Securities Index Fund
This fund tracks the Bloomberg U.S. Treasury Inflation-Protected Securities 0-5 Year Index, which measures the investment return of a wide range of securities issued by the U.S. government. Income generated by this low-volatility investment can fluctuate in response to changes in interest rates and inflation. Read the fact sheet
Vanguard Short-Term Bond Index Fund
This fund tracks the Bloomberg U.S. 1-5 Year Government/Credit Float Adjusted Index, which measures the investment return of a wide range of fixed-income securities. This low-volatility investment holds securities issued by the U.S. government (70%) and American corporations (30%). Read the fact sheet
Vanguard Total Bond Market Index Fund
This fund tracks the Bloomberg U.S. Aggregate Float Adjusted Index, which measures the investment return of a wide range of fixed-income securities in the United States. A low- to moderate-volatility investment, this highly diversified fund holds government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities. Read the fact sheet
Bond fund details and descriptions
| Vanguard Short-Term Inflation-Protected Securities Index Fund (VTSPX) | Vanguard Short-Term Bond Index Fund (VBITX) | Vanguard Total Bond Market Index Fund (VBTIX) | |
|---|---|---|---|
Benchmark | Bloomberg U.S. Treasury Inflation-Protected Securities 0-5 Year Index | Bloomberg U.S. 1-5 Year Government/Credit Float Adjusted Index | Bloomberg U.S. Aggregate Float Adjusted Index |
Investment Objective | Interest income and inflation protection | Interest income | Interest income and moderate capital appreciation |
Asset Allocation | Short-term securities (less than 5 years of duration) issued by the U.S. government, the principal of which is adjusted semi-annually based on inflation. | Short-term (1-5 years duration), investment-grade bonds issued by the U.S. government and industrial, utility, and financial companies. | Investment-grade, U.S. dollar-denominated, fixed-rate securities (more than 1 year of duration) issued by the federal government, and by U.S. industrial, utility, and financial companies. |
Who should consider investing? | This fund is often used as a secondary holding within the bond portion of an index portfolio. Investors in this fund are seeking to protect their portfolio from sudden spikes in inflation. | This fund is often used as a secondary holding within the bond portion of an index portfolio. Investors in this fund can tolerate only minor fluctuations in price and yield. | This fund is often the core holding within the bond portion of an index portfolio. Investors in this fund can tolerate moderate fluctuations in principal value as they seek reliable income generation. |
Fund risk level |
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Fee2 | 0.04% | 0.05% | 0.035% |
- Participants also pay an RPB Administration Fee (0.18%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.04%) which fluctuates slightly over time and is passed onto participants at cost.
Real Estate Fund
This sector-specific fund tracks the performance of the MSCI U.S. Investable Market Real Estate 25/50 Index, which measures the investment return of the stocks of U.S. companies that own and operate real estate. A moderate- to high-volatility investment, the Vanguard Real Estate Index Fund is subject to wider swings in prices than those experienced by funds focusing on a more diverse group of industries. This fund often generates dividend yields that are significantly higher than those of the average stock index fund. Read the fact sheet
Vanguard Real Estate Index Fund (VGSNX) details and description
Benchmark | MSCI U.S. Investable Market Real Estate 25/50 Index |
|---|---|
Investment Objective | Income generation and capital appreciation |
Asset Allocation | Companies that own and operate office buildings, hotels, shopping malls, apartment buildings, and other U.S. real estate, as well as real estate development and management companies via real estate investment trusts (REITs) |
Who should consider investing? | This fund is generally used as a complement to the stock and bond portions of an index portfolio as REITs have historically delivered less-correlated performance. Investors in this fund may experience wide fluctuations in value or long periods of little or no growth of principal. |
Fund risk level |
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Fee3 | 0.10% |
- Participants also pay an RPB Administration Fee (0.18%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.04%) which fluctuates slightly over time and is passed onto participants at cost.
Stable Value and Money Market Funds
RPB Capital Preservation Fund - 403(b) Plan
This is the most conservative of the 403(b) Plan's funds. Its low-volatility strategy is designed for participants who seek solely to maintain their principal balance, or for those who allocate their savings in more than one fund as a counterbalance to a more aggressive choice. It Invests in the Goldman Sachs Asset Management (GSAM) Stable Value Fund. Read the fact sheet
RPB Capital Preservation Fund - Rabbi Trust Plan
This fund is the most conservative of the funds in the Rabbi Trust Plan. It invests in the Vanguard Federal Money Market Fund. Read the fact sheet
RPB Stable Value and Money Market Fund Details
| RPB Capital Preservation Fund - 403(b) | RPB Capital Preservation Fund - Rabbi Trust | |
|---|---|---|
Investment Objective | Stability of principal | Stability of principal |
Asset Allocation | Includes a mix of high-quality, short-term (less than one-year duration) and medium-term (between one- and five-years duration) bonds and other fixed-income securities, as well as insurance contracts that guard against loss of principal. | Invests in the Vanguard Federal Money Market Fund. The fund exclusively invests in high quality money market instruments. |
Who should consider investing? | Investors with a low tolerance for volatility of principal and/or a short-term time horizon. May also help balance a more aggressive investment allocation focused on capital appreciation | Investors with a low tolerance for volatility of principal and/or a short-term time horizon. May also help balance a more aggressive investment allocation focused on capital appreciation |
Fund risk level |
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Fee4 | 0.32% | 0.11% |
- Participants also pay an RPB Administration Fee (0.18%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.04%) which fluctuates slightly over time and is passed onto participants at cost.
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