Vanguard Total Stock Market Admiral Shares Investment Overview and Insights

The Vanguard Total Stock Market Admiral Shares fund is a popular choice for investors seeking broad diversification and low costs.

This fund tracks the CRSP US Total Market Index, which includes nearly 3,000 stocks representing the entire US stock market.

With an expense ratio of 0.04%, it's one of the cheapest ways to invest in the US stock market.

This low cost is a major advantage for long-term investors, as it allows them to keep more of their returns.

Take a look at this: Types of Investors in Stock Market

The fund for Vanguard Total Stock Market Admiral Shares is VTSAX, and you can find more information about it on their website www.vanguard.com.

The institutional shares for Vanguard Large-Cap Index Fund are referred to as VLISX.

This fund, VTSAX, is also known as Vanguard Total Stock Market Index Fund - Admiral Shares.

The Vanguard Total Stock Market Index Fund Admiral Shares has been a solid investment choice for many years. As of the latest data, the fund has an annualized return of 12.66% over the past 10 years, outperforming the S&P 500 benchmark with an annualized return of 11.23%.

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The fund's performance chart shows a steady growth, with a return of 23.74% in 2024, making it a great year for investors. In contrast, 2022 was a challenging year, with a return of -19.52%.

Here are the monthly returns for the fund in 2024:

The fund's performance has been ranked among its category, with a 50.58% rank in the YTD period, a 37.00% rank in the 1 YR period, and a 25.54% rank in the 10 YR period.

Vanguard Total Stock Market Index Fund Admiral Shares has a long history of dividend payments, with a current yield of 1.27%. The fund has been increasing its distributions for 4 consecutive years.

The annual payout has been steadily rising, from $1.14 per share in 2017 to $1.78 per share in 2024.

Here's a breakdown of the dividend payments over the past 12 years:

The dividend yield has ranged from 0.00% to 2.04% over the past 12 years, with a current yield of 1.27%.

Vanguard Total Stock Market Index Fund Admiral Shares has a risk-adjusted performance rank of 90, placing it among the top 10% of mutual funds.

This means it's doing a great job of balancing risk and reward. The fund's volatility is 4.81%, which is the average percentage change in its value over the past month.

A Sharpe ratio of 1.76 indicates that the fund has provided relatively high returns compared to its level of risk over the past year.

The Sharpe ratio is a key metric for evaluating an investment's risk-adjusted returns. It takes into account price changes and dividends, and is calculated based on the past 1 year of trading data.

The current Vanguard Total Stock Market Index Fund Admiral Shares Sharpe ratio is 1.76, which is a relatively high value. This suggests that the fund has generated significant returns relative to its level of risk.

A Sharpe ratio of 1.76 is a strong indicator of the fund's ability to balance risk and reward. To put this into perspective, a higher Sharpe ratio generally indicates better performance in terms of risk-adjusted returns.

Here's a simple way to think about it: a Sharpe ratio of 1.76 means that for every unit of risk taken, the fund has generated 1.76 units of return. This is a great ratio to have, especially in today's market where volatility is high.

The chart below compares the Sharpe ratio of Vanguard Total Stock Market Index Fund Admiral Shares with the selected benchmark, providing insights into the investment's historical performance. By examining this chart, you can get a better sense of how the fund's Sharpe ratio has changed over time.

The chart shows the growth of an initial investment of $10,000 in Vanguard Total Stock Market Index Fund Admiral Shares, comparing it to the performance of the S&P 500 index. This visual representation can help you understand how the fund's Sharpe ratio has impacted its overall performance.

To summarize, a Sharpe ratio of 1.76 is a strong indicator of the Vanguard Total Stock Market Index Fund Admiral Shares' ability to balance risk and reward. This, combined with its overall rank of 90 and its top 10% performance in risk-adjusted returns, makes it a compelling investment option.

Expand your knowledge: Stock Market Performance History

The Volatility Chart is a valuable tool for understanding the ups and downs of your investments. The current Vanguard Total Stock Market Index Fund Admiral Shares volatility is 4.81%, representing the average percentage change in the investment's value, either up or down over the past month.

This chart shows the rolling one-month volatility, giving you a clear picture of how the market has been performing. It's essential to keep an eye on this chart to make informed decisions about your investments.

The 4.81% volatility might seem high, but it's essential to remember that some level of volatility is normal in the stock market.

Additional reading: Alternative Investments to Stock Market

Risk and Volatility can be mitigated by investing in mutual funds with a negative correlation to the market. This means that when the market goes down, these funds go up, and vice versa.

One way to find these funds is to look at their correlation to the market. According to the data, the PowerShares Short S&P500 fund (SH) has a correlation of -98.6% to VTSAX.

Here are some other funds that have a negative correlation to VTSAX:

These funds can be a useful tool for investors looking to hedge their bets and reduce their risk.