Vanguard Total Stock Market (VTSAX)

We may earn a commission for purchases through links on our site, Learn more.

Share This Article:

VTSAX is the Vanguard Total Stock Market Index Fund, is designed to mirror the performance of the CRSP U.S. Total Market Index, granting investors exposure to the entire U.S. stock market. This comprehensive index encompasses virtually all tradable U.S. stocks, and the fund is categorized as a “large-blend” investment by Morningstar.

Notable holdings within the fund include major companies like Apple, Microsoft,, Facebook, and Johnson & Johnson.

As of June 27, 2023, the fund’s assets amount to nearly $305.99 billion, spread across a diverse portfolio of 3,898 different holdings.

Its performance percentiles, ranked by Morningstar, indicate that over various timeframes, the fund falls in the 50th percentile for the trailing 12 months, 30th percentile for the past three years, 28th percentile for the past five years, and 18th percentile for the past ten years, as of late December 2017. A lower percentile indicates better performance.

With an expense ratio of 0.15 percent, the fund is considered low-cost by Morningstar. The minimum initial investment is $3,000. While the expense ratio isn’t as minimal as some competitors in the index fund space, the fund’s Admiral Shares version offers a lower expense ratio of 0.04 percent, requiring a higher $10,000 minimum investment.

In terms of risk and return, the fund demonstrates an average risk level compared to other large-blend funds over the trailing three-, five-, and ten-year periods, as rated by Morningstar. Its returns have been consistently above average for the same periods when compared to its peers.

The fund’s composition in terms of market capitalization and sector holdings aligns closely with its benchmark index, as of October 31, 2017.

Over the past year, the fund has returned 2.00 percent, 12.12 percent over the past three years, 9.98 percent over the past five years, and 11.40 percent over the past decade.

VTSAX was launched in April 1992 and is part of Vanguard, the largest mutual fund provider in the U.S. Vanguard is renowned for its low-cost index products and also offers actively managed funds, attracting significant assets due to its cost-effective approach.

VTSAX investment strategy

The VTSAX investment strategy centers on replicating the performance of the complete U.S. stock market. This fund aims to mirror the overall market’s ups and downs without active stock selection.

VTSAX role in portfolio

VTSAX plays a crucial role as a core large-cap holding within a portfolio. This fund is designed to track the performance of the entire U.S. stock market by including a wide range of companies across various sectors and industries.

By investing in VTSAX, investors gain exposure to a diversified selection of large-cap stocks, which can help spread risk and capture the overall growth potential of the market. Its inclusion in a portfolio aims to provide a foundation of stability and potential long-term returns, making it an essential component for those seeking a balanced and well-rounded investment strategy.

VTSAX management

Gerard O’Reilly and Walter Nejman have been overseeing the management of VTSAX since 1994 and 2016, respectively. They are experienced fund managers with a history of managing various funds for Vanguard. O’Reilly and Nejman’s tenure reflects their expertise and contributions to the fund’s performance over the years.

VTSAX performance

The performance of VTSAX, a fund managed by Vanguard, has demonstrated consistent growth over various time periods. Over the last year, it yielded a return of 2.00 percent. Looking at a broader scope, its returns were 12.12 percent over the past three years, 9.98 percent over the past five years, and an average of 11.40 percent over the past decade. This indicates a positive trend in its performance, reflecting its ability to generate favorable returns for investors over different timeframes.

VTSAX risk

The risk associated with Vanguard Total Stock Market Index Fund (VTSAX) is closely linked to the performance of the U.S. stock market. Since this fund primarily invests in equities, it’s susceptible to potential declines in value due to a variety of factors. These factors can lead to losses in the fund’s value, a characteristic that applies to VTSAX as well.

Is VTSAX a good investment?

VTSAX is an excellent investment option, particularly for those aiming for financial independence and early retirement. This fund is well-suited for individuals seeking to optimize their investment for early retirement due to several key factors.

Firstly, VTSAX offers diversification, which means it invests in a broad range of stocks from various sectors and industries. This diversification helps mitigate the risk associated with individual stock fluctuations and market volatility.

Secondly, VTSAX has a strong history of returns. Over time, it has shown consistent growth and performance, making it a reliable choice for investors looking to build wealth over the long term.

Furthermore, the fund provides dividends that can be reinvested. This means that instead of receiving dividends in cash, you have the option to automatically reinvest them by purchasing additional shares. This process, known as dividend reinvestment, allows for compounding returns, potentially accelerating your wealth accumulation.

Overall, VTSAX’s combination of diversification, historical performance, and dividend reinvestment option makes it a compelling choice for individuals aiming to achieve financial independence and retire early. However, as with any investment, it’s crucial to conduct thorough research, consider your individual financial goals and risk tolerance, and possibly consult a financial advisor before making any investment decisions.

How to Invest in VTSAX

Investing in VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) is a straightforward process. Here’s a step-by-step guide:

Step 1: Start by visiting the Vanguard homepage. From there, navigate to the “Buy Funds” page and log in to your Vanguard account.

Step 2: On the page that appears after logging in, scroll down if necessary to find your account. Select the specific account you want to use for the investment and click “Continue.”

Step 3: Look for the checkbox labeled “Add another Vanguard mutual fund” and select it.

Step 4: In the drop-down box, type “VTSAX” to search for the Vanguard Total Stock Market Index Fund Admiral Shares.

Step 5: The auto-populated information should display “VTSAX.” Enter the dollar amount you wish to invest in this fund and then click “Continue.”

Step 6: Find the drop-down menu in the top right-hand corner of the screen. Use this menu to select the account you want to use to fund your purchase.

Step 7: Before proceeding, ensure that all the information on the submission screen is accurate. Once you’re confident, click “Submit.”

Step 8: Once your submission is complete, you will be directed to a confirmation page. Congratulations! You have successfully invested in VTSAX, one of the top-performing mutual funds available.

Remember that VTSAX has a $3,000 minimum balance requirement. If this initial investment is too high for you, you can consider investing in VTI (Vanguard Total Stock Market ETF), which is a similar fund to VTSAX but is traded like a stock and has no minimum investment requirement. VTSAX also boasts a low expense ratio of 0.04%, making it a cost-effective option for long-term investors.

This step-by-step guide should help you navigate the process of investing in VTSAX through your Vanguard account with clarity and ease.

What is the 10 year return on VTSAX?

The 10-year return on VTSAX, as of August 8, 2023, is +11.75% on an average annual basis. This means that over the past 10 years, the Vanguard Total Stock Market Index Fund (VTSAX) has yielded an average annual growth of approximately 11.75%. Please note that these figures are based on historical data and are subject to change in the future.

Is VTSAX a buy or sell?

Assuming a 90-day horizon and above-average risk tolerance, we recommend a ‘Strong Buy’ stance for VANGUARD TOTAL STOCK (VTSAX). This implies that, based on the current market conditions and your risk appetite, acquiring shares of VTSAX is advisable. Please note that investment decisions should be made in consideration of your personal financial goals and circumstances.

What is the minimum deposit for VTSAX?

The Vanguard Total Stock Market Index Fund (VTSAX) requires a minimum initial investment of $3,000. While its expense ratio is not as low as some other index fund competitors, the fund’s admiral shares version offers a lower expense ratio of 0.04 percent.

However, to access this lower expense ratio, a minimum investment of $10,000 is required. This structure aims to balance accessibility for investors with varying budgets while incentivizing larger investments through reduced expenses for those who can meet the higher minimum investment threshold.

VTSAX vs VTI: Difference in fees

When deciding between VTI and VTSAX, it’s important to consider the difference in fees. Both VTSAX and VTI are known for their extremely low expense ratios, which are among the lowest in the industry.

While VTSAX is technically slightly more expensive than VTI by just 0.01%, this difference is exceedingly small and has minimal impact on your overall returns. In practical terms, the fee disparity between these two funds is almost negligible.

What is the fidelity equivalent of VTSAX?

FSKAX, which stands for the Fidelity Total Market Index Fund, serves as Fidelity’s counterpart to VTSAX (Vanguard Total Stock Market Index Fund). Both FSKAX and VTSAX are index funds that aim to track the performance of the entire U.S. stock market. They provide investors with exposure to a broad range of U.S. stocks, offering a diversified and cost-effective way to invest in the domestic stock market. Just like VTSAX is associated with Vanguard, FSKAX is managed by Fidelity and offers a similar level of market coverage and potential returns.

Read Also:  What are credit references on a rental application?

What companies does VTSAX own?

The Vanguard Total Stock Market Index Fund (VTSAX) holds various companies in its portfolio. Some of its top holdings include:

  1. Apple Inc (AAPL) – 6.25% of net assets
  2. Microsoft Corp (MSFT) – 5.61% of net assets
  3. Inc (AMZN) – 2.25% of net assets
  4. NVIDIA Corp (NVDA) – 1.59% of net assets
  5. Alphabet Inc Class A (GOOGL) – 1.57% of net assets
  6. Berkshire Hathaway Inc Class B (BRK.B) – 1.41% of net assets
  7. Alphabet Inc Class C (GOOG) – 1.34% of net assets
  8. Meta Platforms Inc Class A (META) – 1.31% of net assets
  9. Exxon Mobil Corp (XOM) – 1.18% of net assets
  10. UnitedHealth Group Inc (UNH) – 1.13% of net assets

These percentages represent the portion of VTSAX’s total assets that are invested in each of these companies. VTSAX is a diversified index fund that aims to track the performance of the entire U.S. stock market by investing in a wide range of companies across various sectors and industries.

Is Tesla in VTSAX?

Tesla Inc. (TSLA) is one of the top 10 holdings in the Vanguard Total Stock Market Index Fund (VTSAX). Tesla accounts for approximately 1.62% of the total net assets of the fund. VTSAX is a passively managed index fund that aims to replicate the performance of the entire U.S. stock market, and it includes a diversified portfolio of stocks from various sectors. Tesla’s presence in the top holdings of VTSAX indicates its significance in the overall U.S. stock market landscape based on its market capitalization and performance.

Is VTSAX good for retirees?

VTSAX is a suitable option for retirees seeking index funds. This fund is designed to mirror the performance of the entire U.S. stock market, encompassing a diverse range of large-, mid-, and small-cap stocks. This broad exposure can potentially offer retirees a balanced and comprehensive approach to investing.

What is the 5 year forecast for VTSAX?

The 5-year forecast for VTSAX, the Vanguard Total Stock Market Index Admiral fund, is optimistic. As of August 16, 2023, the fund’s price stands at 108.500 USD. According to our projections, we anticipate a steady upward trend over the long term. By August 9, 2028, the predicted price for the fund is 149.030 USD. If you were to invest over this 5-year period, the expected return could be approximately +37.35%.

Which is better Vfiax or VTSAX?

When comparing VTSAX and VFIAX, it’s important to note that neither is inherently better than the other; they simply have different characteristics. VTSAX encompasses the entire stock market, whereas VFIAX exclusively includes companies within the S&P 500.

In terms of performance, the distinction between the two funds is minimal. Ultimately, the choice between them depends on your preference for a broader market representation with VTSAX or a focus on the S&P 500 with VFIAX.

Can I transfer my Vanguard funds to Fidelity?

To transfer Vanguard funds to Fidelity:

  1. Initiate Transfer Request: You start by submitting a transfer request to Fidelity. This request includes details about the funds you want to transfer and your current account information.
  2. Contacting Current Firm: Upon receiving your transfer request, Fidelity contacts your current investment firm (Vanguard in this case). This contact serves to inform Vanguard about the upcoming transfer and request the necessary account assets.
  3. Processing Request: Vanguard processes the request from Fidelity. This involves verifying the authenticity of the transfer and preparing the assets for transfer.
  4. Transferring Account Assets: After processing, Vanguard transfers the assets from your current Vanguard account to Fidelity. This can include various types of investments such as stocks, bonds, and mutual funds.
  5. Asset Deposit: Fidelity receives the assets from Vanguard and proceeds to deposit these assets into your selected Fidelity account. This can include a new or existing investment account with Fidelity.

Overall, the process usually takes around 5 to 7 business days to complete, although this timeline may vary based on the specific circumstances and the responsiveness of the involved institutions.

How much does Vanguard charge to withdraw money?

Vanguard charges $0 for withdrawal. The withdrawal procedure generally takes around 2 days. It’s important to note that Vanguard is a reputable broker, subject to regulation by at least one leading regulatory authority. It’s essential to remember that you can solely withdraw funds to accounts bearing your name.

Is Vanguard good for first time investors?

Vanguard is suitable for first-time investors due to its accessibility to funds that can prevent newcomers from making expensive errors with individual stock selections. According to Sophoan Prak, a certified financial planner and advisor at Vanguard, mutual funds and ETFs provide an excellent method to attain diverse exposure across a range of securities.

Which is better VTI or VTSAX?

When comparing VTI and VTSAX, specifically focusing on their performance and dividends, an analysis of their annual dividend payouts over the past decade reveals a noteworthy distinction. On average, VTI has exhibited a substantially higher dividend payout, surpassing VTSAX by 107%. This divergence in dividend payouts stands out as one of the most significant dissimilarities between these two funds – VTSAX and VTI.

What Vanguard fund has the highest yield?

The Vanguard High-Yield Corporate Fund stands out as Vanguard’s top-performing bond fund in the preceding decade, up until June 30, 2023. This fund is recognized for its remarkable performance and features a portfolio focused on intermediate-term fixed income with a high-yield characteristic.

How much does Vanguard Total Stock Market Index Fund charge?

The expense ratio for the Vanguard Total Stock Market Index Fund is 0.04 percent. This ratio represents the annual fee charged by the fund for managing and operating expenses. It is a relatively low fee, which means that investors in this fund can expect to pay $0.04 for every $100 they have invested, making it a cost-effective option for gaining exposure to the total stock market.

Can I use Vanguard if I live abroad?

Vanguard is a suitable option for individuals living abroad. This is because Vanguard provides an accessible online platform that enables investors to conveniently purchase and oversee their investments, regardless of their geographical location. This feature allows individuals to effectively manage their investment portfolios from anywhere in the world.

How long does it take to get money out of a Vanguard account?

When you decide to withdraw money from a Vanguard account after selling off your investments, the brokerage typically requires a period of time to make the funds accessible for your withdrawal. This waiting period is usually around 2 days at Vanguard. During this span, the brokerage works to process the necessary transactions and ensure that the funds are properly prepared for withdrawal, before they become available for you to access and transfer.

Does Vanguard have international funds?

Vanguard offers international mutual funds that provide investors with the opportunity to invest in a diverse range of international securities through a single fund. One such fund is the Vanguard Total International Stock Index Fund.

This fund holds over 5,500 non-U.S. stocks, allowing investors to gain exposure to international markets without the need to manage multiple individual securities. These international funds simplify the investment process and provide access to a broad array of global investment opportunities.

Can I wire money from my Vanguard account?

You can transfer funds from your Vanguard account in two ways: wire transfer and electronic bank transfer (EBT). A wire transfer involves sending money directly from your Vanguard account to your bank account using a secure electronic process.

On the other hand, an electronic bank transfer (EBT) also moves funds from your Vanguard account to your bank account, but it’s typically processed through the Automated Clearing House (ACH) network, which might take a bit longer than a wire transfer. Both options provide you with the flexibility to move your money as needed.

Should I buy both VTSAX and VOO?

When considering whether to invest in both VTSAX and VOO, it’s important to recognize that both funds offer solid options for building a diversified portfolio. VTSAX provides broader exposure by encompassing the entire U.S. stock market, including small-cap securities. This can potentially offer more growth opportunities but also comes with increased market variability.

On the other hand, VOO specifically tracks the S&P 500 index, which comprises the largest 500 publicly traded companies in the U.S. This focuses on established giants and may provide stability but with a narrower scope compared to VTSAX.

The decision boils down to your risk tolerance, investment goals, and preference for either a more comprehensive market coverage (VTSAX) or a concentration on major companies (VOO). Combining both could provide a blend of these approaches, but it’s essential to align your choices with your financial strategy.

Why do people invest in VTI?

People invest in VTI (Vanguard Total Stock Market ETF) for several reasons:

  1. Strong Performance: VTI has a history of delivering solid performance by tracking the overall U.S. stock market. This appeals to investors seeking long-term growth potential.
  2. Comprehensive Portfolio: VTI offers exposure to a wide range of companies across different sectors and market capitalizations. This diversification can help reduce risk and enhance potential returns.
  3. Low Fees: One of VTI’s main attractions is its remarkably low expense ratio of 0.03%. This means investors pay minimal fees to invest in a diversified portfolio, increasing their overall returns over time.
  4. Passive Investment: VTI is a passively managed ETF, meaning it aims to replicate the performance of a specific market index rather than relying on active stock picking. This approach often leads to lower costs and can be less volatile.
  5. Ease of Access: VTI is traded on stock exchanges, making it easily accessible to individual investors. It can be bought and sold like a stock, providing liquidity and flexibility.
  6. Tax Efficiency: ETFs like VTI are structured in a way that can lead to greater tax efficiency compared to traditional mutual funds, making them attractive to investors concerned about tax implications.
  7. Long-Term Strategy: Many investors view VTI as a long-term investment strategy due to its focus on broad market exposure, which aligns with the philosophy of holding investments for extended periods to benefit from compounding returns.
  8. Vanguard’s Reputation: VTI is managed by Vanguard, a well-respected investment management company known for its client-first approach and commitment to keeping costs low.

In summary, people invest in VTI for its strong historical performance, comprehensive portfolio, extremely low fees, passive investment approach, accessibility, tax efficiency, long-term potential, and the credibility of Vanguard as the managing company.

How does VTSAX work?

VTSAX, or Vanguard’s Total Stock Market Index Fund Admiral Shares, operates by aiming to replicate the performance of its benchmark index, the CRSP US Total Market Index. This fund invests in a diversified selection of stocks, including those from large, mid-sized, and small companies.

The portfolio comprises a blend of growth-oriented stocks that have the potential for higher-than-average returns and value-oriented stocks that might be considered undervalued. By holding a wide array of stocks across various market segments, VTSAX intends to offer investors broad exposure to the entire United States stock market. This approach is designed to provide long-term growth potential while minimizing the risk associated with individual company performance.