The Vanguard LifeStrategy Growth Fund Four major holdings

When it comes to index funds, Vanguard has been a leader since the beginning. In 1976, it created the first index mutual fund, the Vanguard 500 Index Fund (VFIAX). Ten years later, the group launched Vanguard Total Bond Market Index Fund (VBTLX).

In order to innovate, Vanguard launched “Index Funds of Index Funds” and its LifeStrategy Funds. These funds are a series of widely diversified low-cost funds, based on total index funds, creating different portfolio allocations based on risk objectives. The four basic mutual funds include the Vanguard LifeStrategy Growth Fund (VASGX). As of April 27, 2021, the fund has $19.4 billion in assets and an expense ratio of 0.14%.

Key points

  • Vanguard is one of the leaders of index funds, including index funds of index funds.
  • Vanguard launched the Vanguard LifeStrategy Growth Fund (VASGX) in 1994, investing in four index funds.
  • VASGX invests heavily in stocks, of which more than 80% is invested in two stock funds and 20% is invested in bond funds.

1. Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)

As of April 2021, Vanguard Total Stock Market Index Fund topped the list with a weight of 48.6%. VTSAX holds 3,745 assets with an asset management scale of US$240.4 billion to track the performance of the CRSP US Total Market Index, which is composed of nearly 100% of the US stock market’s total market value.

The fund tends to be large-cap stocks, but it includes the weight of all capital based on the weight of the underlying index. As of the first quarter of 2021, the fund has had an average annual return of approximately 8.3% since its establishment on April 27, 1992, and an average annual return of 14.2% over the past 10 years.

2. Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)

As of the first quarter of 2021, the weight of Vanguard Total International Stock Index Fund in LifeStrategy Fund is 32.30%. VTIAX was launched in 1996 and has USD 45.3 billion in assets invested in 7,443 stocks that only track the FTSE Global All-Cap Index (except the United States). The index hopes to gain exposure to stocks from developed and emerging markets.

The largest holdings of the fund include Alibaba Group (BABA), Tencent Holdings (TCEHY) and Taiwan Semiconductor Manufacturing (TSM). As of April 2021, the average annualized return of the fund for the past 10 years was 5.25%, and the average annualized return since its establishment on April 29, 1996 was 6.41%.

3. Vanguard Total Bond Market Index Fund Investor Shares (VBTLX)

As of the first quarter of 2021, the weight of the Vanguard Total Bond Market Index Fund is 13.6%. The fund’s assets invested in bonds amounted to US$73.5 billion.

The fund aims to track the performance and yield of the Bloomberg Barclays U.S. Composite Floating Adjusted Index. As of April 2021, its average annual rate of return for the past 10 years was 3.39%, and its average annual rate of return since its establishment on December 11, 1986 was 4.18%.

4. Vanguard Total International Bond Index Fund Investor Shares (VTABX)

As of the 12th quarter of 2021, the weight of Vanguard Total International Bond Index Fund Investor Shares is 5.5%. The fund provides investors with a low-cost way to gain exposure to international bonds. The fund’s US$40.8 billion in assets was invested in tracking the performance of the Bloomberg Barclays Global Consolidated RIC Cap Index after the adjustment of the US dollar float.

The fund invests heavily in government bonds and government-related bonds in developed countries, but it also has exposure to some emerging markets. The fund was launched on May 31, 2013 and has an average annual return of 3.75% since its inception. As of April 2021.

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