The YouTuber advises investors to avoid holding the Vanguard Target Date 2035 Fund in taxable accounts due to unexpected and significant capital gains distributions. He explains that a change in Vanguard's policy for institutional clients led to massive outflows, forcing the fund to sell appreciated assets and distribute large taxable gains to remaining shareholders. This resulted in substantial tax bills for investors holding the fund outside of retirement accounts.
“The problem happened in their Vanguard Target Date Retirement Funds, really the 2035 fund ticker VTDHX... investors are now getting the shaft from Vanguard funds.”