The Vanguard Index Fund had assets of $ 1.04 trillion as of November 30. The Vanguard Total Stock Market Index ETF rallied higher than the US Dow Jones and S&P 500, indicating strong investor demand for these ETFs and confidence in one of the oldest index funds in the US.
Vanguard, one of the largest investment companies in the world, offers both large and retail investors a wide range of mutual funds and ETFs.
ETF shares are traditionally considered a profitable investment, especially among beginners and investors seeking to minimize risks, since when buying them, investing is not in the shares of one particular company, but in a whole “basket of shares” collected by professional experts of the investment company.
In addition, investing in ETFs provides for lower fees for trading in the stock market.
The Vanguard Total Stock Market Index Fund, which aims to track the performance of a benchmark index and measure the investment performance of the entire stock market, had $ 1.04 trillion in assets as of November 30, making it the world’s first with more than $ 1 trillion
Founded back in 1992, the Vanguard Index Fund is the most diversified stock index in the United States. The Vanguard Total Stock Market Index Fund is a huge portfolio of small, mid and large cap stocks and securities.
By investing in the shares of this fund, investors purchase its security – an ETF share, which represents a small fraction of the assets of this fund.
The largest share (23.1%) in the total portfolio of Vanguard Total Stock Market Index Fund shares as of November 30, 2020 is occupied by shares of the following 10 companies:
1. Apple (AAPL)
2. Microsoft (MSFT)
3. Amazon (AMZN)
4. Alphabet (GOOG, GOOGL)
5. Facebook (FB)
6. Berkshire Hathaway (BRK-A, BRK-B, BRKB)
7. Tesla (TSLA)
8. J&J (JNJ)
9. JP Morgan Chase (JPM)
10. Visa (V)
The Vanguard Total Stock Market Index ETF is up 17.5% since early 2020 and 21.8% over the past six months.
This is higher than the growth of major US stock indexes Dow Jones and S&P 500, which added 5.8% and 14.4% YTD, and over the past six months 15.6% and 18.7%, respectively.
The Vanguard Total Stock Market ETF has attracted the most cash of any ETF this year, with a net inflow of $ 30.8 billion, reflecting strong investor demand and confidence in the investment company. Vanguard, the largest ETF issuer this year, controls 28% of the $ 5.3 trillion US ETF industry.
Nate Geraci, president of ETF Store, an investment advisory firm, noted the low fees of the Vanguard Total Stock Market Index and the benefits that investors see in the type of “passive” management (index-following).
“Investors have become much more aware of the importance of fees and that active management is ineffective,” Geraci said. “Given that Vanguard pioneered index investing, it seems only fitting that one of their flagship funds was the first to reach this historic mark ($ 1 trillion in assets).”