4 / 5 Stars
4 5 5 5 4
Zacks Investment Research
5 (Strong Sell)
Standard & Poor's
5 / 5 Stars
#78 in Large Blend
U.S. News evaluated 498 Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 16.98 percent over the past year, 12.73 percent over the past three years, 5.75 percent over the past five years, and 8.64 percent over the past decade.
|Trailing Returns||Updated 04.30.2013|
|Year to date||12.9%|
|3 Years (Annualized)||12.7%|
|5 Years (Annualized)||5.8%|
|10 Years (Annualized)||8.6%|
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 May 03, 2013, the fund has assets totaling $248.42 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 16.98 percent over the past year and 12.73 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 5.75 percent over the past five years and 8.64 percent over the past decade.
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."
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.
Vanguard Total Stock Market has an expense ratio of 0.17 percent.
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.