24 important things you should know about VFIAX mutual fund before you buy it

Milan Kovacevic July 28, 2019

Are you evaluating VFIAX mutual fund as a potential investment? Are you looking to get the full scoop on this fund, as well as learn about alternatives to investing in it? If so, you came to the right place.

In this VFIAX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • The Basics: VFIAX performance, returns, expense ratio, holdings and dividend yield;
  • The Analysis: the pros and cons of investing in VFIAX mutual fund;
  • The Alternatives: other ETFs and mutual funds you should consider as alternatives to VFIAX.

And here is the list of questions we’ll answer:

  1. Describe Vanguard Index Funds: Vanguard 500 Index Fund; Admiral Shares (VFIAX).
  2. What are VFIAX holdings?
  3. How did VFIAX perform historically? What were the historical returns?
  4. How many up and down years did VFIAX have historically?
  5. What is VFIAX dividend yield?
  6. What is VFIAX minimum initial investment amount?
  7. What is VFIAX expense ratio?
  8. Does VFIAX have any sales loads or 12b-1 distribution expenses?
  9. What is VFIAX tax efficiency (tax-cost ratio)?
  10. What is VFIAX beta? How would you assess VFIAX risk?
  11. What is VFIAX Sharpe ratio?
  12. What are the pros of investing in VFIAX? What are VFIAX positives?
  13. What are the cons of investing in VFIAX? What are VFIAX negatives?
  14. Compare and contrast: VFIAX vs VOO.
  15. Compare and contrast: VFIAX vs VTSAX.
  16. Compare and contrast: VFIAX vs FXAIX.
  17. Compare and contrast: VFIAX vs VTI.
  18. Compare and contrast: VFIAX vs SPY.
  19. Compare and contrast: VFIAX vs VIGAX.
  20. Compare and contrast: VFIAX vs SWPPX.
  21. Compare and contrast: VFIAX vs VINIX.
  22. Compare and contrast: VFIAX vs VFINX.
  23. Compare and contrast: VFIAX vs IVV.
  24. Compare and contrast: VFIAX vs VTSMX.

So let’s start. Scroll down to the question that interests you the most.

The Basics

1. Describe Vanguard Index Funds: Vanguard 500 Index Fund; Admiral Shares (VFIAX).

The Fund seeks to track the performance of its benchmark index, the S&P 500. The Fund employs an indexing investment approach. The Fund attempts to replicate the target index by investing all of its assets in the stocks that make up the Index with the same approximate weightings as the Index.

2. What are VFIAX top holdings?

VFIAX has 506 stock holdings and 0 bond holdings.

The top 10 holdings represent 21.19% of total assets. Here are the top holdings:

Name

Symbol

% Assets

Microsoft Corp

MSFT

3.81%

Apple Inc

AAPL

3.59%

Amazon.com Inc

AMZN

3.10%

Facebook Inc A

FB

1.68%

Berkshire Hathaway Inc B

BRK.B

1.59%

Johnson & Johnson

JNJ

1.57%

Alphabet Inc Class C

GOOG

1.52%

Alphabet Inc A

GOOGL

1.49%

Exxon Mobil Corp

XOM

1.44%

JPMorgan Chase & Co

JPM

1.40%

3. How did VFIAX perform historically? What were the historical returns?

VFIAX has generated the following returns:

  • 1-month return is 6.54%;
  • 3-month return is 2.18%;
  • 1-year return is 3.61%;
  • 3-year return is 16.49%;
  • 5-year return is 10.81%;
  • 10-year return is 15.26%;
  • 15-year return is 8.27%.

4. How many up and down years did VFIAX have historically?

In the last 10 years, VFIAX had 9 up years and 1 down year.

5. What is VFIAX dividend yield?

VFIAX yield is 1.9%.

6. What is VFIAX minimum initial investment amount?

VFIAX minimum initial investment amount is $10000.

7. What is VFIAX expense ratio?

VFIAX expense ratio is 0.04%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does VFIAX have any sales loads or 12b-1 distribution expenses?

No.  VFIAX 12b-1 distribution fee is 0. VFIAX front-end sales load is 0. VFIAX back-end sales load is 0.

9. What is VFIAX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0.53%;
  • 3-year ax cost ratio is 0.58%.

10. What is VFIAX beta? How would you assess VFIAX risk?

  • 3-year beta is 1.00;
  • 5-year beta is 1.00;
  • 10-year beta is 1.00;
  • 15-year beta is 1.00.

11. What is VFIAX Sharpe ratio?

  • 3-year Sharpe ratio is 1.11;
  • 5-year Sharpe ratio is 0.91;
  • 10-year Sharpe ratio is 1.20;
  • 15-year Sharpe ratio is 0.57.

The Analysis

12. What are the pros of investing in VFIAX? What are VFIAX positives?

The following are VFIAX strengths from our perspective:

  • VFIAX net assets are $249.11 billion. This fund is a popular choice with retail and institutional investors.
  • VFIAX 3-year return is 16.49%, which is in line with the 3-year return of the benchmark index (S&P 500 TR USD), 16.54%.
  • VFIAX 5-year return is 10.81%, which is in line with the 5-year return of the benchmark index (S&P 500 TR USD), 10.84%.
  • VFIAX 10-year return is 15.26%, which is in line with the 10-year return of the benchmark index (S&P 500 TR USD), 15.28%.
  • VFIAX 15-year return is 8.27%, which is in line with the 15-year return of the benchmark index (S&P 500 TR USD), 8.29%.
  • This fund not have 12b1, front-end or back-end sales fees.
  • VFIAX expense ratio is 0.04%, which is considered low. Nice job picking a low-cost fund.

13. What are the cons of investing in VFIAX? What are VFIAX negatives?

There are no visible red flags.

The Alternatives

14. Compare and contrast: VFIAX vs VOO.

VFIAX is a mutual fund, whereas VOO is an ETF. VFIAX has a lower 5-year return than VOO (10.81% vs 11%). VFIAX has a higher expense ratio than VOO (0.04% vs 0.03%). Below is the comparison between VFIAX and VOO.


VFIAX

VOO

Segment

U.S. Equity: Large Blend

Equity: U.S. - Large Cap

Net Assets

$249.11B

$110.69B

Expense Ratio

0.04%

0.03%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

S&P 500

YTD Return

11.01%

14.91%

1-Year Return

3.61%

7.24%

3-Year Return

16.49%

14.03%

5-Year Return

10.81%

11%

10-Year Return

15.26%

14.8%

Dividend Yield

1.9%

1.97%

VOO profile: The Fund seeks to track the performance of its benchmark index, the S&P 500. The Fund employs an indexing investment approach. The Fund attempts to replicate the target index by investing all of its assets in the stocks that make up the Index with the same approximate weightings as the Index.

15. Compare and contrast: VFIAX vs VTSAX.

Both VFIAX and VTSAX are mutual funds. VFIAX has a higher 5-year return than VTSAX (10.81% vs 10.37%). VFIAX and VTSAX have the same expense ratio (0.04%). Below is the comparison between VFIAX and VTSAX.


VFIAX

VTSAX

Segment

U.S. Equity: Large Blend

U.S. Equity: Large Blend

Net Assets

$249.11B

$202.15B

Expense Ratio

0.04%

0.04%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

CRSP US Total Market Index

YTD Return

11.01%

11.92%

1-Year Return

3.61%

3.89%

3-Year Return

16.49%

17%

5-Year Return

10.81%

10.37%

10-Year Return

15.26%

15.46%

Dividend Yield

1.9%

1.87%

VTSAX profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of the overall stock market. The Fund employs an indexing investment approach to track the performance of the CRSP US Total Market Index. The Fund invests by holding a collection of securities that approximates the Index.

16. Compare and contrast: VFIAX vs FXAIX.

Both VFIAX and FXAIX are mutual funds. VFIAX has a higher 5-year return than FXAIX (10.81% vs 10.59%). VFIAX has a higher expense ratio than FXAIX (0.04% vs 0.02%). Below is the comparison between VFIAX and FXAIX.


VFIAX

FXAIX

Segment

U.S. Equity: Large Blend

U.S. Equity: Large Blend

Net Assets

$249.11B

$32.19B

Expense Ratio

0.04%

0.02%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

S&P 500

YTD Return

11.01%

9.82%

1-Year Return

3.61%

3.78%

3-Year Return

16.49%

16.1%

5-Year Return

10.81%

10.59%

10-Year Return

15.26%

15.14%

Dividend Yield

1.9%

1.78%

FXAIX profile: The Fund seeks a total return which corresponds to that of the S&P 500 Index. The Fund invests at least 80% of its assets in common stocks included in the Index. The Fund may lend securities to earn income and uses statistical sampling techniques in stock selection.

17. Compare and contrast: VFIAX vs VTI.

VFIAX is a mutual fund, whereas VTI is an ETF. VFIAX has a higher 5-year return than VTI (10.81% vs 10.64%). VFIAX has a higher expense ratio than VTI (0.04% vs 0.03%). Below is the comparison between VFIAX and VTI.


VFIAX

VTI

Segment

U.S. Equity: Large Blend

Equity: U.S. - Total Market

Net Assets

$249.11B

$112.34B

Expense Ratio

0.04%

0.03%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

CRSP US Total Market Index

YTD Return

11.01%

15.2%

1-Year Return

3.61%

6.22%

3-Year Return

16.49%

14.05%

5-Year Return

10.81%

10.64%

10-Year Return

15.26%

14.92%

Dividend Yield

1.9%

1.94%

VTI profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of the overall stock market. The Fund employs an indexing investment approach to track the performance of the CRSP US Total Market Index. The Fund invests by holding a collection of securities that approximates the Index.

18. Compare and contrast: VFIAX vs SPY.

VFIAX is a mutual fund, whereas SPY is an ETF. VFIAX has a lower 5-year return than SPY (10.81% vs 10.92%). VFIAX has a lower expense ratio than SPY (0.04% vs 0.09%). Below is the comparison between VFIAX and SPY.


VFIAX

SPY

Segment

U.S. Equity: Large Blend

Equity: U.S. - Large Cap

Net Assets

$249.11B

$277.52B

Expense Ratio

0.04%

0.09%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

S&P 500

YTD Return

11.01%

14.87%

1-Year Return

3.61%

7.13%

3-Year Return

16.49%

13.95%

5-Year Return

10.81%

10.92%

10-Year Return

15.26%

14.7%

Dividend Yield

1.9%

1.86%

SPY profile: The Trust seeks investment results that, before expenses, generally correspond to the price and yield performance of the component common stocks of the S&P 500 Index.

19. Compare and contrast: VFIAX vs VIGAX.

Both VFIAX and VIGAX are mutual funds. VFIAX has a lower 5-year return than VIGAX (10.81% vs 11.41%). VFIAX has a lower expense ratio than VIGAX (0.04% vs 0.05%). Below is the comparison between VFIAX and VIGAX.


VFIAX

VIGAX

Segment

U.S. Equity: Large Blend

U.S. Equity: Large Growth

Net Assets

$249.11B

$28.18B

Expense Ratio

0.04%

0.05%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

MSCI US Prime Market Growth Index

YTD Return

11.01%

12.62%

1-Year Return

3.61%

4.65%

3-Year Return

16.49%

18.17%

5-Year Return

10.81%

11.41%

10-Year Return

15.26%

16.14%

Dividend Yield

1.9%

1.2%

VIGAX profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization growth stocks. The Fund employs a "passive management"--or indexing--investment approach designed to track the performance of the MSCI US Prime Market Growth Index.

20. Compare and contrast: VFIAX vs SWPPX.

Both VFIAX and SWPPX are mutual funds. VFIAX has a lower 5-year return than SWPPX (10.81% vs 10.95%). VFIAX has a higher expense ratio than SWPPX (0.04% vs 0.03%). Below is the comparison between VFIAX and SWPPX.


VFIAX

SWPPX

Segment

U.S. Equity: Large Blend

U.S. Equity: Large Blend

Net Assets

$249.11B

$34.91B

Expense Ratio

0.04%

0.03%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

S&P 500

YTD Return

11.01%

14.96%

1-Year Return

3.61%

7.2%

3-Year Return

16.49%

14.01%

5-Year Return

10.81%

10.95%

10-Year Return

15.26%

14.75%

Dividend Yield

1.9%

2.04%

SWPPX profile: The Fund seeks to track the price and dividend performance (total return) of common stocks of United States companies, as represented by the S&P 500.

21. Compare and contrast: VFIAX vs VINIX.

Both VFIAX and VINIX are mutual funds. VFIAX and VINIX have the same 5-year return (10.81%). VFIAX and VINIX have the same expense ratio (0.04%). Below is the comparison between VFIAX and VINIX.


VFIAX

VINIX

Segment

U.S. Equity: Large Blend

U.S. Equity: Large Blend

Net Assets

$249.11B

$111.45B

Expense Ratio

0.04%

0.04%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

S&P 500

YTD Return

11.01%

11.02%

1-Year Return

3.61%

3.61%

3-Year Return

16.49%

16.5%

5-Year Return

10.81%

10.81%

10-Year Return

15.26%

15.27%

Dividend Yield

1.9%

1.97%

VINIX profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. The Fund employs an indexing investment approach designed to track the performance of the Standard & Poors 500 Index by investing all of its assets in the stocks that make up the Index.

22. Compare and contrast: VFIAX vs VFINX.

Both VFIAX and VFINX are mutual funds. VFIAX has a higher 5-year return than VFINX (10.81% vs 10.69%). VFIAX has a lower expense ratio than VFINX (0.04% vs 0.14%). Below is the comparison between VFIAX and VFINX.


VFIAX

VFINX

Segment

U.S. Equity: Large Blend

U.S. Equity: Large Blend

Net Assets

$249.11B

$24.75B

Expense Ratio

0.04%

0.14%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

S&P 500

YTD Return

11.01%

11%

1-Year Return

3.61%

3.5%

3-Year Return

16.49%

16.38%

5-Year Return

10.81%

10.69%

10-Year Return

15.26%

15.13%

Dividend Yield

1.9%

1.8%

VFINX profile: The Fund seeks to track the performance of its benchmark index, the S&P 500. The Fund employs an indexing investment approach. The Fund attempts to replicate the target index by investing all of its assets in the stocks that make up the Index with the same approximate weightings as the Index.

23. Compare and contrast: VFIAX vs IVV.

VFIAX is a mutual fund, whereas IVV is an ETF. VFIAX has a lower 5-year return than IVV (10.81% vs 10.99%). VFIAX and IVV have the same expense ratio (0.04%). Below is the comparison between VFIAX and IVV.


VFIAX

IVV

Segment

U.S. Equity: Large Blend

Equity: U.S. - Large Cap

Net Assets

$249.11B

$175.25B

Expense Ratio

0.04%

0.04%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

S&P 500

YTD Return

11.01%

14.88%

1-Year Return

3.61%

7.24%

3-Year Return

16.49%

14.02%

5-Year Return

10.81%

10.99%

10-Year Return

15.26%

14.76%

Dividend Yield

1.9%

1.92%

IVV profile: The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500 Index. Uses a replication strategy to try to track the Index, which includes approximately 77% of the market capitalization of all publicly traded US equity securities.

24. Compare and contrast: VFIAX vs VTSMX.

Both VFIAX and VTSMX are mutual funds. VFIAX has a higher 5-year return than VTSMX (10.81% vs 10.02%). VFIAX has a lower expense ratio than VTSMX (0.04% vs 0.14%). Below is the comparison between VFIAX and VTSMX.


VFIAX

VTSMX

Segment

U.S. Equity: Large Blend

U.S. Equity: Large Blend

Net Assets

$249.11B

$129.42B

Expense Ratio

0.04%

0.14%

Management Style

passive (index-based)

passive (index-based)

Underlying Index

S&P 500

CRSP US Total Market Index

YTD Return

11.01%

12.39%

1-Year Return

3.61%

5.02%

3-Year Return

16.49%

15.44%

5-Year Return

10.81%

10.02%

10-Year Return

15.26%

16.73%

Dividend Yield

1.9%

1.77%

VTSMX profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of the overall stock market. The Fund employs an indexing investment approach to track the performance of the CRSP US Total Market Index. The Fund invests by holding a collection of securities that approximates the Index.

We hope this review was helpful to you and taught you the basics of investing in VFIAX (return, performance, yield, expense ratio, and holdings), the pros and cons of, and the alternatives to investing in VFIAX.

If you’d like to leave any comments, feel free to do so below.

Powered by Froala Editor

Comments0
Follow Us