Vanguard US Equity Index A

Tracks the S&P Total Market index, which includes large, medium, small, and micro-cap companies listed on the NYSE and NASDAQ.

  • 56885.10p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 66982.41p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.10%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.10%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 1.20%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 09 April 2021, fund data last updated 02 November 2015

The Vanguard US Equity Index Fund seeks to track the performance of the S&P Total Market Index. The Index is a market-capitalisation weighted index representing the US stock market, offering broad exposure to large, mid, small, and micro-cap companies regularly traded on the New York Stock Exchange and the NASDAQ markets. The Fund aims to achieve a result consistent with the replication of the Index by investing in a representative sample of securities that make up the Index.

Fund summary

Sector North America
Structure OEIC
Launched June, 2009
Size £9,963m
Yield 1.20%
Charging basis Income
Dividends paid 31 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.10%
Ongoing charges figure 0.10%

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Investment process

Vanguard is one of the largest asset managers in the US and is a leading provider of passive strategies globally. It is structured as a 'mutual' (client-owned) which allows it to return profits to fund shareholders in the form of lower expenses. The fund employs an indexing investment strategy designed to achieve a result consistent with the replication of the Index by investing in a representative sample of the securities that make up the Index, holding each stock in approximate proportion to its weighting in the Index. To track the Index as closely as possible, the fund attempts to remain fully invested in stocks. However, for efficient portfolio management or hedging purposes and to reduce transaction costs, the fund may invest in derivatives, including index futures and forward currency exchange contracts. For UK fund investors the valuation point is 9pm (London time) and cut-off time for dealing is 12 noon. The fund engages in limited securities lending - a maximum of 3% of the underlying securities may be lent out.

The fund's low charges means this is an attractive alternative to actively managed funds for general US equity exposure. It aims to track the S&P Total Market Index, which consists over over 3,900 large, medium and small sized companies listed in the US. This is a broader index than the S&P500, which only covers the 500 largest US-listed companies.

Manager research

Average monthly relative returns

  • 16/17 -0.07%
  • 17/18 -0.01%
  • 18/19 -0.13%
  • 19/20 -0.12%
  • 20/21 -0.08%

Bestinvest MRI

  • 3 years -0.11%
  • 5 years -0.08%
  • Career -0.08%
  • 3 years 0.60%
  • 5 years 0.50%
  • Career 0.50%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Vanguard Group

The Group launched an initial line up of index funds in the UK in June 2009 and has a range of other more diverse investment products. Chief Investment Officer (CIO) Tim Buckley oversees all investment activity at Vanguard. Vanguard Equity Investment Group oversees all passive and active equity portfolios, and alternatives strategies, managed by Vanguard. The group’s headquarters is at Vanguard’s campus in Malvern, Pennsylvania, United States.

Track record

Vanguard Group has 9.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.08%. During the worst period of relative performance (from July 2011 - October 2020) there was a decline of 10% relative to the index. The worst absolute loss has been 16%.

Periods of worst performance

Absolute -16.00% (December 2019 - March 2020)
Relative -10.00% (July 2011 - October 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

5.3638% Apple Inc
4.816% Microsoft Corp
4.1074% Amazon.com Inc
2.7266% Alphabet Inc. Class A
1.8897% Facebook Inc
1.1882% Johnson & Johnson
1.1786% Berkshire Hathaway Inc
1.0065% Procter & Gamble Co
.9953% Visa Inc
.9118% Jpmorgan Chase & Co
Source: Trustnet

Sector breakdown

Information Technology 27.00%
Health Care 15.00%
Consumer Discretionary 12.00%
Financials 10.00%
Communications 10.00%
Industrials 8.00%
Consumer Staples 6.00%
Real Estate 4.00%
Utilities 3.00%
Materials 3.00%

Portfolio

As at 30/09/15: 3,622 stocks (index: 3,986 stocks).

Key Investor Information - Income

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Key Investor Information - Accumulation

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