Skip to Content
Fund Spy: Morningstar Medalist Edition

5 Great Funds for Your Tax-Sheltered Account

Cram your tax-sheltered accounts full of Morningstar Medalists.

Mentioned: , , , , , , , ,

What makes for a good tax-sheltered fund? For the most part, it has the same things you'd seek in a fund for a taxable account: Low costs, good management, a sound strategy, and a solid fund company. However, since tax-sheltered investments tend to be longer-term holdings, it's worth emphasizing funds that can build wealth over 15 or more years. Here are a few Morningstar Medalists for the job.

 Vanguard Target Retirement 2030 (VTHRX)
This fund is a great set-it-and-forget-it option. It's cheap, covers a wide swath of the investable market, and adjusts over time. If you already have plenty of funds, you could simplify things in one fund that you don't have to fret over. Vanguard has target-date funds that aim for a retirement date every five years, so you should be able to find one that syncs up with your retirement plans. The funds hold varying mixes of  Vanguard Total Stock Market Index (VTSMX),  Vanguard Total International Stock Index (VGTSX), Vanguard Total Bond Market II Index (VTBIX), and Vanguard Total International Bond Market Index (VTIBX).

Russel Kinnel has a position in the following securities mentioned above: LSBDX. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.