Vanguard index Fund as at November 30 had assets of $1.04 trillion. Stock ETF Vanguard Total Stock Market Index rose higher than the US stock indices Dow Jones and S&P 500, which indicates a high demand for these ETFs among investors and on the credibility of one of the oldest index funds in the United States.
Company Vanguard, one of the largest investment companies in the world offering both large retail investors a wide range of mutual funds and ETF shares.
ETF shares are traditionally considered a good investment, especially among beginners and investors seeking to minimize risk, because when they purchase investing is not in the shares of one particular company, but in a whole “basket of shares”, the collected professional experts investment company.
In addition, investing in ETFs requires a lower Commission costs for trading on the stock market.
According to the company, index Fund Vanguard Total Stock Market Index Fund that seeks to track the performance of a benchmark index that measures the investment return of the entire stock market, as of November 30, had assets of $1.04 trillion., becoming the first in the world with assets worth more than $1 trillion.
Established in 1992, this Vanguard index Fund is the most diversified stock market index of USA. Assets in the Vanguard Total Stock Market Index Fund represent a huge portfolio of shares of companies with small, medium and large capitalization, and securities.
Investing in shares of the investors Fund acquires its securities – share ETF, which represents a small share of the assets of the Fund.
The largest share (23.1 percent) of the overall stock portfolio is the Vanguard Total Stock Market Index Fund as at November 30, 2020 take shares of the following 10 companies:
1. Apple (AAPL)
2. Microsoft (MSFT)
3. Amazon (AMZN)
4. Google (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)
From the beginning of 2020 shares ETF Fund Vanguard Total Stock Market Index grew by 17.5% and for the last six months, 21.8%.
This is higher than the growth of the major US stock indexes Dow Jones and S&P 500, which has gained 5.8% and 14.4%, and for the past six months, 15.6% and 18.7%, respectively.
Vanguard Total Stock Market ETF attracted more of all funds all ETF this year with net inflows of $30.8 bln that proves the high demand among investors and trust investment company. Company Vanguard, the largest ETF Issuer in the year, controls 28% of the ETF industry in the United States in the amount of $5.3 trillion.
Nate Geraci, President of investment consulting company ETF Store said low commissions Fund Vanguard Total Stock Market Index and the benefits that investors see in the type of “passive” control (following the index).
“Investors have become much more aware about the importance of fees, and that active management is inefficient,” said Geraci. “Given that Vanguard was the beginning of index investing, it seems quite appropriate that one of their flagship funds were the first to reach this historic level ($1 trillion. in the assets)”.
