VTSAX, short for Vanguard Total Stock Market Index Fund Admiral Shares, is a mutual fund comprised of more than 4,000 publicly traded companies based in the United States. As one of the largest index mutual funds in the world, VTSAX is a popular choice for investors seeking broad-based exposure to the U.S. Stock market.
Among broad-based index funds in the blend Morningstar Categories, Vanguard Total Stock Market Index VTSAX saw inflows of $55.9 billion, making it the best-selling mutual fund of 2020. VTSAX can be a great option for those looking to get broad-based exposure to the U.S. Stock market, but it's important to understand the details before investing.
In this article, we take a close look at VTSAX and discuss its features, advantages, and drawbacks. We will also review the fund's performance and compare it to other index funds. So let's dive in and get to know everything about VTSAX.
VTSAX, or Vanguard Total Stock Market Index Fund Admiral Shares, is a mutual fund that tracks the performance of the U.S. Stock market. The fund is managed by Vanguard, one of the world's largest investment firms. The fund is comprised of more than 4,000 publicly traded companies, making it one of the most diversified index funds in the market.
The fund's holdings are spread across a broad range of industries, from technology to banking and retail. The fund is designed to track the performance of the total Stock market, which is comprised of both large- and small-cap Stock. As a result, it offers investors a diversified portfolio with exposure to a wide range of companies.
VTSAX has a low expense ratio of 0.04%. This means that for every $100 invested in the fund, only $0.04 is used to cover the fund's expenses. This is much cheaper than actively managed funds, which often have expense ratios of 1.00% or more.
The fund also has a low minimum investment of $3,000, which makes it a great option for those who are just getting started with investing. Additionally, the fund has a low turnover rate, which makes it a great option for those who are looking for a long-term investment.
VTSAX has a long track record of outperformance. Since its inception in November 2000, the fund has grown more than 880%. This is much higher than the S&P 500's growth of over 500% during the same period. This makes it one of the best-performing index funds in the market.
Despite its strong track record, VTSAX does have some drawbacks. For example, the fund is heavily weighted towards large-cap U.S. Stock. This means that investors may not get the diversification they're looking for. Additionally, the fund does not invest in international Stock, so investors who are looking for global exposure may want to look elsewhere.