Vanguard Total Stock Market

Scorecard
4 / 5 Stars
Lipper
4 5 5 5 4
Zacks Investment Research
3 (Hold)
Standard & Poor's
5 / 5 Stars
TheStreet.com
A- (Buy)

U.S. News evaluated 487 Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 26.82 percent over the past year, 14.62 percent over the past three years, 23.99 percent over the past five years, and 7.89 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 1.5%
1 Year 26.8%
3 Years (Annualized) 14.6%
5 Years (Annualized) 24.0%
10 Years (Annualized) 7.9%

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Summary

The Vanguard Total Stock Market Index fund can be a one-stop shop for investors looking for a domestic stock fund that invests broadly across sectors and capitalizations. 

As of March 05, 2014, the fund has assets totaling $318.60 billion. Its portfolio consists of common domestic stocks and tracks the MSCI U.S. Broad Market Index.

For the past several years, the fund has beaten the S&P 500, owing in part to its broader mix of small-cap stocks, which have outperformed large caps. However, the fund still performs similarly to the large-cap indexes because it invests heavily in stocks like ExxonMobil, Johnson & Johnson, and Apple. The fund has returned 26.82 percent over the past year and 14.62 percent over the past three years.

Since 2005, the fund has tracked the MSCI U.S. Broad Market Index, which holds nearly all publicly traded stocks. The fund has returned 23.99 percent over the past five years and 7.89 percent over the past decade.

Investment Strategy

The fund includes a diverse basket of stocks because it tracks the MSCI U.S. Broad Market Index, which represents 99.5 percent or more of the total market capitalization of U.S. common stocks traded on the New York Stock Exchange and the Nasdaq. The fund invests in small, midsize, and micro-cap stocks from all industries and all sectors. Its management models the fund's industry weighting and market capitalization on the index.

Role in Portfolio

Morningstar calls the fund a core player in a portfolio, saying, "This fund's low costs, broad sector and market-cap diversification, and tax efficiency are tough to beat."

Management

Gerard O'Reilly has assisted former manager Gus Sauter, Vanguard's chief investment officer, since 1994. O'Reilly became lead manager of the fund in 2005, but he has been managing portfolios at Vanguard since 1992.

Fees

Vanguard Total Stock Market has an expense ratio of 0.04 percent.

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Risk

The fund risks lagging its peers if small-cap stocks do not perform as well as large-cap stocks. There is also index sampling risk if the securities selected for the fund do not perform similarly to the index. Historically, mid- and small-cap stocks, which the fund holds, have been more volatile than large-cap stocks.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 1 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 2 for one year, 1 for five years, and 3 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 3 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

In the March 2010 edition of The Independent Adviser for Vanguard Investors, Dan Wiener says, "70% to 80% of this fund's performance is dictated by the 500 largest in its portfolio. These stocks are the same ones in the S&P 500."

2010-06-02

In the annual Lipper/Barron's Fund Families Survey for 2009, Vanguard ranks 40th out of 61 fund families surveyed.

2010-02-17

Morningstar gives this fund a stewardship rating of B on a scale of A to F.

Morningstar 2010-02-17

In the March 2010 edition of The Independent Adviser for Vanguard Investors, Dan Wiener says, "70% to 80% of this fund's performance is dictated by the 500 largest in its portfolio. These stocks are the same ones in the S&P 500."

2010-06-02

In the annual Lipper/Barron's Fund Families Survey for 2009, Vanguard ranks 40th out of 61 fund families surveyed.

2010-02-17

Morningstar gives this fund a stewardship rating of B on a scale of A to F.

Morningstar 2010-02-17