A Vanguard Group equity fund has become the first of its kind to eclipse $1 trillion of assets, a testament to the rise of index-based investing over the past three decades. Vanguard Total Stock Market Index Fund, which includes both a mutual fund and an exchange-traded fund, had $1.04 trillion of assets as of November 30, company data show. “Given that Vanguard birthed index investing, it seems only fitting that one of their flagship funds would be the first to reach this historic mark,” said Nate Geraci, president of the ETF Store, an investment advisory firm. While soaring US stocks are fueling the fund, it’s also being bolstered by falling fees, a trend stoked by Vanguard, a pioneer in low-cost passive investing. The Vanguard Total Stock Market Index Fund was created in 1992, with the corresponding ETF following in 2001.
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Vanguard Total Stock Market Index Fund Surpasses $1T Level Becoming First of Its Kind
Dec 16 2020 · 15:14 UTC by Steve Muchoki · 3 min read
Photo: Depositphotos
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Vanguard equity fund includes as many as 3590 different stocks, thus offering individual investors a chance to diversify, reduce risk, and optimize their investments.
Amid soaring US stocks, the Vanguard Total Stock Market Index Fund has made history by topping $1 trillion in its asset under management according to media outlet Bloomberg. Reportedly, the Vanguard Equity fund that encompasses both mutual funds and an exchange-traded fund had a total of $1.04 trillion of assets as of November 30.
Berkshire Hathaway among its 10 largest holdings - these make up 23% of its portfolio.
Vanguard says the top features of the fund are its low costs, broad diversification, and the potential for tax efficiency.
A major
Vanguard Group equity fund has become the first of its kind to exceed 1 trillion in assets, reflecting the magnitude to which investors have piled into diversified investments.
The Vanguard Total Stock Market Index Fund, which is available as a mutual fund and an exchange-traded fund, had a little over $1 trillion in assets as of November 30, according to company data.
Vanguard is the largest issuer of mutual funds, and also became the top issuer of ETFs this year. The investment advisor controls 28% of the $5.3 trillion US ETF industry, according to Bloomberg.
Vanguard makes history with the first US$1 trillion equity fund
Annie Massa and Claire Ballentine, Bloomberg News The Vanguard Group headquarters are seen in Malvern, Pennsylvania, U.S., on Friday, Sept. 5, 2003. Vanguard Group, the second-largest U.S. mutual fund company, received a subpoena from New York Attorney General Eliot Spitzer as part of an inquiry into illegal trading practices in the $6.9 trillion industry. Photographer: Bloomberg/Bloomberg , Photographer: Mike Mergen/Bloomberg
A Vanguard Group equity fund has become the first of its kind to eclipse US$1 trillion of assets, a testament to the rise of index-based investing over the past three decades.