Position：home

Morningstar VTSAX: A Deep Dive into the Vanguard Total Stock Market Index Fund Admiral Shares

Introduction:

The Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) is a widely popular mutual fund that provides investors with broad exposure to the entire US stock market. With its low costs and diversified portfolio, VTSAX has become a cornerstone of many investment portfolios since its inception in 1992.

Performance and Returns:

morningstar vtsax

VTSAX has consistently outperformed the broader market over the long term. Over the past 10 years, the fund has returned an average of 9.6% annually, compared to 7.6% for the S&P 500 Index. As of March 2023, VTSAX has a net asset value (NAV) of $100.99 per share.

Fees and Expenses:

VTSAX has one of the lowest expense ratios in the industry at 0.04%, which translates to $4 for every $10,000 invested. This low cost structure allows investors to keep more of their hard-earned returns.

Morningstar VTSAX: A Deep Dive into the Vanguard Total Stock Market Index Fund Admiral Shares

Investment Strategy:

VTSAX is a passively managed fund that tracks the performance of the CRSP US Total Market Index. The index includes over 3,600 stocks of all sizes, representing approximately 99% of the US market capitalization. This wide diversification provides investors with exposure to a broad range of companies and industries, reducing overall risk.

Tax Efficiency:

VTSAX is tax-efficient due to its low turnover rate and tendency to hold stocks for extended periods. This reduces the number of taxable capital gains distributions, benefiting investors who hold the fund in taxable accounts.

Introduction:

Suitability for Investors:

VTSAX is suitable for investors with long-term investment horizons and a moderate risk tolerance. It is a good choice for those looking for a low-cost, diversified way to invest in the US stock market. However, it is important to note that VTSAX is subject to market fluctuations and may lose value in declining markets.

Core Applications:

VTSAX can be used as a core holding in a diversified investment portfolio. It provides investors with a single fund that gives them exposure to the entire US stock market, reducing the need for multiple investments.

Innovative Applications:

VTSAX can also be used in more innovative ways, such as:

As a hedge against inflation: VTSAX's exposure to a wide range of stocks helps to protect against the erosion of purchasing power over time.
As a way to invest in the future of the US economy: VTSAX gives investors access to companies that are driving economic growth and innovation.
As a tool for portfolio diversification: VTSAX can be combined with other assets, such as bonds or international stocks, to create a well-diversified portfolio.

Tables:

Table 1: VTSAX Key Statistics

Metric	Value
Expense ratio	0.04%
NAV	$100.99
Dividend yield	1.42%
10-year annualized return	9.6%

Table 2: VTSAX vs. S&P 500 Index

Metric	VTSAX	S&P 500 Index
Expense ratio	0.04%	0.09%
10-year annualized return	9.6%	7.6%
Number of stocks	3,600+	500

Table 3: VTSAX Asset Allocation

Asset Class	Percentage
Large-cap stocks	82.7%
Mid-cap stocks	11.8%
Small-cap stocks	5.5%

Table 4: VTSAX Sector Exposure

Sector	Percentage
Technology	23.6%
Healthcare	14.4%
Consumer discretionary	12.9%
Financials	11.8%
Industrials	10.4%

Effective Strategies:

Invest for the long term: VTSAX is best suited for investors with long-term investment horizons.
Rebalance regularly: Rebalancing your portfolio periodically by selling winners and buying losers can help to maintain your desired asset allocation.
Consider tax implications: VTSAX is more tax-efficient when held in a retirement account.

FAQs:

1. What is VTSAX's investment objective?
VTSAX's investment objective is to track the performance of the CRSP US Total Market Index, which represents the entire US stock market.

2. How do I buy VTSAX?
You can buy VTSAX through a brokerage account or directly from Vanguard.

3. Is VTSAX a good investment?
VTSAX is a good investment for investors looking for a low-cost, diversified way to invest in the US stock market.

4. What are the risks associated with VTSAX?
VTSAX is subject to market fluctuations and may lose value in declining markets.

5. Is VTSAX suitable for all investors?
VTSAX is suitable for investors with long-term investment horizons and a moderate risk tolerance.

6. How often does VTSAX pay dividends?
VTSAX pays dividends quarterly.

7. What is the minimum investment for VTSAX?
The minimum investment for VTSAX is $3,000.

8. Can I withdraw money from VTSAX anytime?
Yes, you can withdraw money from VTSAX anytime, but there may be tax implications if you withdraw before age 59½.