Tier 2: Self-Directed Funds
Building a more customized portfolio
Our Tier 2 funds span a spectrum of asset classes (like stocks and bonds) and investing styles. You can use these funds to create a custom investment strategy aligned with your retirement goals and tolerance for risk.
The Tier 2 funds offer a mix of actively managed and passively managed (or index) funds.
A choice of active and passive funds
Active fund managers seek to take advantage of market opportunities as they occur, with the goal of outperforming an investment benchmark index for a particular asset class or investment style. Active managers rely on research, market forecasts, and their own judgment and experience to select the stocks, bonds, or other types of investments they buy and sell for the fund.
With passive fund management, there is no manager who picks stocks or bonds. Instead, the fund is invested in the securities represented in a particular market or investment 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.
A mix of mutual funds and collective trusts
Some of our Tier 2 choices are mutual funds and others are collective investment trusts. For the mutual funds, we use institutional share classes that offer lower fees when possible. Collective investment trusts typically offer lower fees than mutual funds for qualified retirement plans, like the RPB 403(b) Plan.
Stock funds
Fidelity Blue Chip Growth Fund
Fidelity Blue Chip Growth Fund is an actively managed domestic equity growth strategy with a large-cap bias. The investment approach focuses on companies the manager believes have above-average earnings growth potential with sustainable business models, for which the market has mispriced the rate and/or durability of growth. A moderate- to high-volatility investment, this fund offers the opportunity to invest in a cross section of some of the largest and most well-known U.S. companies.
Fund Fact Sheet: Fidelity Blue Chip Growth Fund
Dodge & Cox Stock Fund
The actively managed Dodge & Cox Stock Fund offers investors a highly selective, actively managed core equity mutual fund that invests in businesses based on the manager’s analysis of long-term fundamentals relative to current valuations. A moderate- to high-volatility investment, this fund offers the opportunity to invest in companies that appear to be temporarily undervalued by the stock market but, in the manager’s opinion, have a favorable outlook for long-term growth.
Fund Fact Sheet: Dodge & Cox Stock Fund
Eaton Vance Atlanta Capital SMID-Cap Fund
Using a fundamental approach to investing in small- to midcap stocks, this actively managed fund seeks companies that are in strong financial condition and that the manager believes are attractively valued relative to earnings and cash flow per share. Investments in smaller companies make this a very high-volatility investment that is subject to wider swings in prices than those generally experienced by funds focusing on larger, more established companies.
Fund Fact Sheet: Eaton Vance Atlanta Capital SMID-Cap Fund
Hartford Schroders International Stock Fund
The actively managed Hartford Schroders International Stock Fund seeks non-U.S. companies whose forward-earnings growth potential has yet to be identified by the market. Combines core long-term holdings with opportunistic shorter-term holdings based on the portfolio manager’s best ideas. A very high-volatility investment, it is subject to wider swings in prices than those generally experienced by funds focusing on similar U.S. companies.
Fund Fact Sheet: Hartford Schroders International Stock Fund
Vanguard Institutional 500 Index Trust
This index 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.
Fund Fact Sheet: Vanguard Institutional 500 Index Trust
Vanguard Small-Cap Index Fund
This index 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.
Fund Fact Sheet: Vanguard Small-Cap Index Fund
Vanguard Developed Markets Index Trust (International)
This international-focused index 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 solely on U.S. companies.
Fund Fact Sheet: Vanguard Developed Markets Index Trust (International)
Vanguard Emerging Markets Stock Index Fund
This index 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.
Fund Fact Sheet: Vanguard Emerging Markets Stock Index Fund
Stock fund details & comparisons
Actively managed funds
| Fidelity Blue Chip Growth Fund | Dodge & Cox Stock Fund | Eaton Vance Atlanta Capital SMID-Cap Fund | Hartford Schroders International Stock Fund | |
|---|---|---|---|---|
Benchmark | Russell 1000 Growth Index | S&P 500 Index | Russell 2500 Index | MSCI ACWI ex USA Index |
Investment Objective | Capital appreciation | Capital appreciation | Capital appreciation | Capital appreciation |
Asset Allocation | Stocks of large and established U.S. companies | Medium-to-large, well-established U.S. and international companies | Small to mid-sized U.S. companies | Large international companies |
Who should consider investing? | The fund is often used as the core holding within the stock portion of a 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 part of core value-oriented holding within the stock portion of a portfolio to complement core growth-oriented stock holding. 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 a 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 a 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 | 0.47% | 0.51% | 0.81% | 0.69% |
Index funds
| Vanguard Institutional Index Fund | Vanguard Small-Cap Index Fund | Vanguard Developed Markets Index Fund | Vanguard Emerging Markets Stock Index Fund | |
|---|---|---|---|---|
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, small companies in developing economies such as Brazil, Russia, India, China, and Taiwan |
Who should consider investing? | The 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 (0.16%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.02%) which fluctuates slightly over time and is passed onto participants at cost.
Bond funds
Fidelity Total Bond K6 Fund
The actively managed Fidelity Total Bond K6 Fund is a diversified fixed-income strategy seeking competitive risk adjusted performance commensurate with investor expectations of a core bond fund. A low- to moderate-volatility investment, this highly diversified fund holds government, corporate, and international bonds, as well as mortgage-backed and asset-backed securities.
Fund Fact Sheet: Fidelity Total Bond K6 Fund
Vanguard Institutional Total Bond Market Index Trust
This index 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
Fund Fact Sheet: Vanguard Institutional Total Bond Market Index Trust
Bond fund details and comparison
| Fidelity Total Bond K6 Fund | Vanguard Institutional Total Bond Market Index Trust | |
|---|---|---|
Benchmark | Bloomberg U.S. Universal Bond Index | Bloomberg U.S. Aggregate Float Adjusted Index |
Investment Objective | Interest income and moderate capital appreciation | Interest income and moderate capital appreciation |
Asset Allocation | Assets in debt securities of all types and repurchase agreements for those securities across different asset classes, market sectors, and maturities, including investment-grade, high yield, and emerging market asset classes, and both domestic and foreign issuers | Investment-grade, U.S. dollar-denominate, 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 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. | 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 | 0.30% | 0.024% |
- Participants also pay an RPB Administration Fee (0.16%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.02%) which fluctuates slightly over time and is passed onto participants at cost.
Real estate fund
Vanguard Real Estate Index Fund
This sector-specific index 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.
Fund Fact Sheet: Vanguard Real Estate Index Fund
REAL ESTATE FUND DETAILS
| Vanguard Real Estate Index Fund | |
|---|---|
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 |
|
Fee3 | 0.11% |
- Participants also pay an RPB Administration Fee (0.16%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.02%) which fluctuates slightly over time and is passed onto participants at cost.
Stable value fund
GSAM Stable Value Collective Trust
The Goldman Sachs Stable Value Collective Trust (the “Fund”) seeks to earn current income and preserve capital and stability of principal and to maintain a stable value of $1.00 per unit. 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.
Fund Fact Sheet: GSAM Stable Value Collective Trust
STABLE VALUE FUND DETAILS
| GSAM Stable Value Collective Trust | |
|---|---|
Investment Objective | Stability of principal |
Asset Allocation | Stable value investment contracts and fixed income instruments which underlie stable value contracts as well as in 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. |
Fund risk level |
|
Fee4 | 0.29% |
- Participants also pay an RPB Administration Fee (0.16%) as well as a Custody, Recordkeeping, and Investment Consulting Fee (approximately 0.02%) which fluctuates slightly over time and is passed onto participants at cost.
Differences in Rabbi Trust Plan funds
Because the Rabbi Trust Plan can hold only mutual funds and not trusts, the fund lineup differs from the RPB 403(b) Plan. The Rabbi Trust Plan offers the following equivalent Vanguard funds in place of the Vanguard and GSAM trusts in the 403(b) Plan:
| Rabbi Trust Plan Funds | Equivalent 403(b) Plan Funds |
|---|---|
Vanguard Total Bond Market Index Fund | Vanguard Institutional Total Bond Market Index Trust |
Vanguard Institutional Index Fund | Vanguard Institutional 500 Index Trust |
Vanguard Developed Markets Index Fund | Vanguard Developed Markets Index Trust |
Vanguard Federal Money Market Fund | GSAM Stable Value Collective Trust |
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.
Fund Fact Sheet: Vanguard Total Bond Market Index Fund
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.
Fund Fact Sheet: Vanguard Institutional Index Fund
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.
Fund Fact Sheet: Vanguard Developed Markets Index Fund (International)
Vanguard Federal Money Market Fund
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.
Fund Fact Sheet: Vanguard Federal Money Market Fund
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