Anyone know how to open a VTSAX??
How much do I need to invest in VTSAX?
If you decide to invest in VTSAX, you may wonder how to buy your first shares from Vanguard. Currently, the minimum amount needed to invest in VTSAX is $3,000.
If this is your first time investing in the stock market, congratulations! Owning stocks is one of those financial behaviors that often demonstrates the
difference between wealthy and “rich.”
If you don’t have $3,000 to start investing in VTSAX now, Vanguard also offers an ETF fund (VTI) composed of the same portfolio. You can invest in VTI starting at the price of just one share (just over $140 at the time of this writing).
What is VTSAX?
VTSAX is an acronym that stands for “Vanguard Total Stock Market Index Fund Admiral Shares.” VTSAX is an index fund designed to track the performance of the entire United States stock market.
For a little more detail, let’s take a look at a summary of the
VTSAX fund from Vanguard themselves:
Created in 1992, Vanguard Total Stock Market Index Fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks. The fund’s key attributes are its low costs, broad diversification, and the potential for tax efficiency. Investors looking for a low-cost way to gain broad exposure to the U.S. stock market who are willing to accept the volatility that comes with stock market investing may wish to consider this fund as either a core equity holding or your only domestic stock fund.
What type of fund is VTSAX?
To fully understand VTSAX, it may be helpful to have definitions for both mutual funds and index funds.
A
mutual fund is a portfolio of many different stocks you can purchase together.
An
index fund is a mutual fund that’s created to reflect a larger market.
VTSAX is both a mutual fund and an index fund. Or put another way, VTSAX is a collection of many stocks (more on that later) that track the American stock market as a whole.
A Profile of the Vanguard Total Stock Market Index Fund
VTSAX is one of the largest index funds in the world. If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. It’s a popular choice likely owned by everyone from the new investor to those with
generational wealth.
That being said, it’s important to learn more about the composition and historical performance before making your own personal decision.
How many stocks does VTSAX hold?
As of April 2019, VTSAX held 3607 stocks.
What stocks are held in the VTSAX fund?
The top 10 holdings in VTSAX are all generally considered to be household names. These companies make up nearly 20% of the fund’s total worth and include:
- Microsoft
- Apple
- Amazon
- Alphabet (Google)
- Facebook
- Berkshire Hathaway
- JP Morgan Chase
- Johnson & Johnson
- Exxon Mobil
- Visa
While the VTSAX provides a diversified portfolio over picking single stocks, there are a few industries that are most heavily present (you can probably guess which industries by using the list above). They are Technology (20.9%), Financial (19.5%), Consumer Services (13.7%) and Industrial (13.5%).