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WEALTH MANAGEMENT FINAL PRESENTATION
BY STEVE RATAJCZAK
AND DEB BOOZE
VANGUARD TOTAL STOCK
MARKET INDEX FUND
Product Summary Created in 1992, Vanguard Total Stock Market Index Fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks. The fund’s key attributes are its low costs, broad diversification, and the potential for tax efficiency. Investors looking for a low-cost way to gain broad exposure to the U.S. stock market who are willing to accept the volatility that comes with stock market investing may wish to consider this fund as either a core equity holding or your only domestic stock fund
ManagementGerard C. O'Reilly, Principal
Portfolio manager. Advised the fund since 1994.
Worked in investment management since 1992. B.S., Villanova University.
Vanguard Total Stock Market Index Fund seeks to track the investment performance of the CRSP US Total Market Index, which represents approximately 100% of the investable U.S. stock market and includes large-, mid-, small-, and micro-cap stocks regularly traded on the New York Stock Exchange and Nasdaq. The group uses proprietary software to implement trading decisions that accommodate cash flow and maintain close correlation with index characteristics. Vanguard’s refined indexing process, combined with low management fees and efficient trading, has provided tight tracking net of expenses.
Fund Facts Asset class Domestic Stock - GeneralCategory Large BlendExpense ratioas of 08/12/2013 0.05% This is 95% lower than the average expense ratio of funds with similar holdings.*Minimum investment $10,000Fund number 0585Fund advisor
Vanguard Equity Investment Group
NAV
Price as of 12/03/2013 $45.43Change –$0.15 –0.33%
SEC yield as of 12/03/2013 1.81% B
Risk potential
VANGUARD TOTAL STOCK MARKET INDEX
EQUITY CHARACTERISTICS
Total Stock Mkt Idx Adm
Number of stocks 3622Median market cap $42.9 billionPrice/earnings ratio 19.8x
Price/book ratio 2.6xReturn on equity 16.8%
Earnings growth rate 10.6%Foreign holdings 0.1%
Turnover rate (as of fiscal year
end December)3.2%
Short-term reserves 0.1%Fund total net assets $287.7 billionShare class total net
assets $81.0 billion
GROWTH OF $10,000
VTASX: RETURNS ANALYSIS
1 Month
3 Month
6 Mont
hYTD 1
Year3
Year5
Year10
Year15
Year20
Year
Total Return (through 11/13)
4.22% 4.98% 11.87%
26.27%
28.72%
16.76%
15.94% 8.02% 5.90% 8.95%
VTSAX : Stock Sector Breakout
Top Holdings
Name Weight Shares
EXXON MOBIL CORP 2.26 63,133,173
APPLE INC 2.09 13,327,076
MICROSOFT CORP 1.46 106,715,947
JOHNSON & JOHNSON 1.35 39,878,968
INTL BUSINESS MACHINES CORP 1.19 15,742,070
GOOGLE INC 1.34 3,849,227
CHEVRON CORP 1.29 27,536,123
WELLS FARGO & CO 1.23 75,191,001
GENERAL ELECTRIC CO 1.35 146,803,658
Fees
Expense Ratio 0.05
% Max Load NA
% Min Load NA
% Deferred Load NA
% Redemption NA
% Max 12 B1 Fee 0.00
% Max Mgt Fee 0.15