A top equity fund that counts Apple, Tesla, and Berkshire Hathaway among its largest holdings has become the first of its kind to exceed $1 trillion in assets
Getty Images / Mario Tama
- A Vanguard equity fund has become the first of its kind to top $1 trillion in assets, suggesting that the world's largest issuer of mutual funds has had a doubly historic year.
- The Vanguard Total Stock Market Index Fund held just over a trillion dollars in assets as of November 30, according to company data.
- The index fund counts Apple, Tesla, and Berkshire Hathaway among its 10 largest holdings - these make up 23% of its portfolio.
- Vanguard says the top features of the fund are its low costs, broad diversification, and the potential for tax efficiency.
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A major Vanguard Group equity fund has become the first of its kind to exceed 1 trillion in assets, reflecting the magnitude to which investors have piled into diversified investments.
The Vanguard Total Stock Market Index Fund, which is available as a mutual fund and an exchange-traded fund, had a little over $1 trillion in assets as of November 30, according to company data.
Vanguard is the largest issuer of mutual funds, and also became the top issuer of ETFs this year. The investment advisor controls 28% of the $5.3 trillion US ETF industry, according to Bloomberg.
The index fund's 10 largest holdings make up 23% of its entire portfolio. They include Apple, Microsoft, Amazon, Alphabet, Facebook, Berkshire Hathaway, Tesla, Johnson & Johnson, JPMorgan, and Visa.
Aside from the dominant stock names, Vanguard's equity fund is also supported by low fees. Aside from an account service fee, it has no fund-specific purchase fee or redemption fee.
The index fund, which has no foreign holdings, was established in 1992. Vanguard says its key features are its "low costs, broad diversification, and the potential for tax efficiency." The ETF followed in 2001.
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