Vanguard LifeStrategy® 40% Equity ETF aims to deliver income and steady growth by holding a balanced mix of about 40% stocks and 60% bonds. It achieves this diversification by primarily investing in a range of passively managed exchange-traded funds (ETFs) and other Vanguard collective investment schemes that track various market indexes. The investment manager actively adjusts the portfolio’s allocations to maintain this balance, ensuring that the fund remains well-diversified across different equity and fixed income securities for moderate long-term capital appreciation.