Vanguard Total Stock Market Index Fund Becomes World’s First Trillion Dollar Stock Fund
Posted on 12/16/2020
Vanguard Total Stock Market Index Fund, which includes both a traditional open-ended mutual fund and an exchange-traded fund (ETF), had US$ 1,035,112,935,440of assets as of November 30, 2020, company data show. The index equity fund is the first of its type to surpass US$ 1 trillion in assets. The Vanguard Total Stock Market Index Fund was created in 1992, with the corresponding ETF following in 2001. By the end of 1992, Vanguard Total Stock Market Index Fund had US$ 512 million in assets. The fund has never had a year of outflows.
The Vanguard Total Stock Market ETF attracted the most cash of any ETF so far in 2020, with US$ 30.8 billion of net inflows. Vanguard is the top issuer for ETF inflows for 2020. Vanguard controls 28% of the US$ 5.3 trillion U.S. ETF industry.
Broad diversification, a rock-bottom fee, and the backing of a long-term track record of managing capital, has kept Vanguard up for continued success in growing AUM. Costs have been a key driver of the shift to passively managed funds. Back in 2000, the Vanguard Total Stock Market Index Fund was among its peers such as the Vanguard 500 Index, which then had US$ 96.5 billlion in assets, followed by Fidelity Magellan.
Retail investors are becoming more educated on the impact of mutual fund fees and how many active management funds by the nature of investing can underperform.
Keywords: The Vanguard Group.