Is there only one target retirement fund at Vanguard?

Question

I've heard about the Vanguard retirement 2045 fund. That is a bit too long-term for me. Are there 2020, 2030 funds? Or is the title not to be taken too literally?

Also, is it better to invest in the fund or to decompose it and invest individually in the components? One thing I have heard is that Vanguard automatically rebalances the retirement fund, so that would be a real plus, of course.

Fidelity offers index funds, like those you find at Vanguard and the expense ratios are even slightly lower than V's. Why wouldn't one go with Fidelity?

Answer 1

Yes, there are Vanguard target date funds for every five year interval.  Yes, target date funds change their asset allocation over time - that is the whole theory of a target date fund.

Answer 2

You have a good answer already about the selection of retirement funds so I will concentrate on the other parts of your question.

Retirement funds are no brainer funds, so you do not have to decide how to invest for retirement.  Would it be better to invest in the components?  It might be for someone who understands the risks and potential rewards, yes.  For someone who does not care to do the research nor has an understanding of the theory of investing for retirement, a retirement fund is a dandy proposition.  Indeed their composition changes as you approach retirement.  Rebalanced?  Maybe.  

Why not go with Fidelity if you wish.  Actually, there might be an additional advantage.  Vanguard also charges an annual maintenance fee of $20 if your balance in a fund is below $10,000.  Fidelity gets around that problem with their index fund by requiring a minimum investment of $10,000.  

But expenses is not the whole story.  Annual returns is what you are really after.  I believe Vanguard has a slightly better annual return over 10 years than Fidelity.  That might be because Fidelity only recently lowered their expense ratio beginning in 2005.  Maybe they will raise it again.  Who knows?