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Conservative Income Portfolio

Overview

Unit Price as of 05/08/2025 $17.97
Change -$0.05 -0.28%
Expense Ratio as of 05/08/2025 0.12%
Inception Date 11/14/2003

Investment Objective

The Portfolio seeks to provide current income.

Investment Strategy

The Income Portfolio invests in three Vanguard® bond index funds and one Vanguard short-term reserves account in approximately the following proportions:

Vanguard Total Bond Market II Index Fund 34.5%
Vanguard Total International Bond Index Fund 22.5%
Vanguard Short-Term Inflation-Protected Securities Index Fund 18%
Vanguard Short-Term Reserves Account 25%

Through its investment in Vanguard Total Bond Market II Index Fund, the Portfolio indirectly invests in a broadly diversified collection of securities that, in the aggregate, approximates the Bloomberg Barclays U.S. Aggregate Float Adjusted Index in terms of key risk factors and other characteristics. The Index represents a wide spectrum of public, investment-grade, taxable fixed income securities in the United States—including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities—all with maturities of more than one year. The Fund maintains a dollar-weighted average maturity consistent with that of the index, which generally ranges between five and ten years.

Through its investment in Vanguard Total International Bond Index Fund, the Portfolio indirectly invests in government, government agency, corporate, and securitized non-U.S. investment-grade fixed income investments, all issued in currencies other than the U.S. dollar and with maturities of more than one year. To minimize the currency risk associated with investment in bonds denominated in currencies other than the U.S. dollar, the Fund attempts to hedge its currency exposures.

Through its investment in Vanguard Short-Term Inflation-Protected Securities Index Fund, the Portfolio indirectly invests in inflation protected public obligations issued by the U.S. Treasury with remaining maturities of less than five years. The Fund maintains a dollar-weighted average maturity consistent with that of the target index, which generally does not exceed three years.

Through its investment in Vanguard Short-Term Reserves Account, the Portfolio indirectly invests in funding agreements issued by one or more insurance companies, synthetic investment contracts, as well as shares of Vanguard Federal Money Market Fund. Funding agreements are interest-bearing contracts that are structured to preserve principal and accumulate interest earnings over the life of the investment. The agreements pay interest at a fixed minimum rate and have fixed maturity dates that normally range from 2 to 5 years. Vanguard Federal Money Market Fund invests in high-quality, short-term money market instruments issued by the U.S. government and its agencies and instrumentalities. For more information about the Vanguard Short-Term Reserves Account, please see the Vanguard Interest Accumulation Portfolio profile.

Investment Risks

Because it invests mainly in bond funds, the Portfolio primarily is subject to low to moderate levels of interest rate risk, income risk, income fluctuation risk, call risk, prepayment risk, and extension risk. The Portfolio also has low levels of credit risk, manager risk, index sampling risk, currency hedging risk, nondiversification risk, and derivatives risk.

Average Annual Returns - Updated Monthly as of 04/30/2025

Name 1 year 3 year 5 year 10 year Since Inception 11/14/2003
Name Conservative Income Portfolio 1 year 6.49% 3 year 2.60% 5 year 1.07% 10 year 1.85% Since Inception 11/14/2003 2.79%
Name Income Composite Index** 1 year 6.77% 3 year 2.98% 5 year 1.18% 10 year 1.93% Since Inception 11/14/2003 3.04%

**Consists of four unmanaged benchmarks, weighted Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index (34.5%), Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged) (22.5%), Bloomberg Barclays U.S. 0-5 Year TIPS Index (18%), and the Average Institutional Money Market Fund (25%). The Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index consists of the Barclays U.S. Aggregate Bond Index through December 31, 2009; and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter. Effective September 29, 2016, Barclays indexes were rebranded to Bloomberg Barclays indexes.

Annual Investment Returns

Year Ended Conservative Income Portfolio
Year Ended 2024 Conservative Income Portfolio 2.98%
Year Ended 2023 Conservative Income Portfolio 5.48%
Year Ended 2022 Conservative Income Portfolio -7.73%
Year Ended 2021 Conservative Income Portfolio 0.17%
Year Ended 2020 Conservative Income Portfolio 4.90%

Historical Prices

05/08/2025 $17.97
05/07/2025 $18.02
05/06/2025 $18.00
05/05/2025 $17.97
05/02/2025 $17.98

Search for more historical price information

Index performance is provided as a benchmark but is not illustrative of any particular investment. An investment cannot be made in an index.

The performance data shown represents past performance. Past performance - especially short-term past performance - is not a guarantee of future results. Investment returns and principal value will fluctuate, so that investors' units, when sold, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data cited. For performance data current to the most recent quarter-end click here.

Income Portfolio invests in Vanguard Short-Term Reserves Account, which, in turn, invests in Vanguard Federal Money Market Fund. Vanguard Short-Term Reserves Account could lose money by investing in Vanguard Federal Money Market Fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Investment returns are not guaranteed, and you could lose money by investing in the Direct Plan.

For more information about New York's 529 College Savings Program Direct Plan, download a Disclosure Booklet and Tuition Savings Agreement or request one by calling 877-NYSAVES (877-697-2837). This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider them carefully before investing.

Before you invest, consider whether your or the beneficiary's home state offers any state tax or other benefits that are only available for investments in that state's 529 plan. Other state benefits may include financial aid, scholarship funds, and protection from creditors.

The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Direct Plan.

Ascensus Broker Dealer Services, Inc., serves as Program Manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group, Inc., serves as the Investment Manager. Vanguard Marketing Corporation markets, distributes, and underwrites the Direct Plan.

No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, Inc., Ascensus Broker Dealer Services, Inc., nor any of their applicable affiliates insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio.