Vanguard achieves world's first trillion-dollar fund

The fund is the world's first $1trn product

The fund is the world’s first $1trn product

Vanguard has made history as one of its equity index funds becomes the first ever to hold more than $1trn in assets under management (AUM), according to reports.

The Vanguard Total Stock Market Index fund surpassed the milestone, holding $1,035,112,935,440 in assets as of 30 November, a far cry from its year-end total of $512m in 1992, the year it was launched.

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It provides investors access to the entirety of the US stockmarket, with more than 3,500 securities at the end of October, for a fee of 0.03% in the ETF share class of the combined fund, which also contains a mutual fund, available for 0.14%, although this is closed to new investors.

The ETF share class of the fund was the most popular ETF globally this year, receiving $30.8bn of net inflows year-to-date, while Vanguard also takes the crown of top issuer for ETF inflows.

America’s ETF industry passed $5trn in AUM only last month, of which Vanguard, the region’s top issuer by inflows in 2020, controls 28%.

Technology comprises the largest portion of the fund, with a 26.2% weighting, according to Vanguard’s website, while the top ten holdings represent 23.1% of total net assets.

These include Apple, Microsoft, Amazon, Alphabet and Facebook, alongside new entrant to the S&P 500 Tesla, and more traditional players Berkshire Hathaway, Johnson & Johnson, JPMorgan Chase & Co and Visa.


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