Finance

Vanguard US Equity Index Fund: Important Things To Know Before Investing

Vanguard US Equity Index Fund

The Vanguard US Equity Index is a passive fund and it’s also among the best Vanguard funds available today. The Fund’s goal is to track the performance of Standard and Poor’s (S&P) Total Market Index (also known as the “Index”).

The S&P Index consists of US stocks of micro, small, mid and large-sized companies.

The Vanguard US Equity Index Fund has two chief goals:

  1. Tracking the performance of the S&P Index by making an investment in a representative sample of Index Constituent shares. 
  2. Remaining completely invested and holding small amounts of cash, except in extraordinary market and political situations. In such situations, the Fund might follow a different policy from the usual.

American Large-Cap Blend Equity funds represent the overall American market very well, especially when it comes to size, growth rates, and price. Equities that make up the top 70% of the US Equity market’s capitalization are known as large-cap. The blend style is given to funds where neither growth nor value characteristics predominate. These funds invest at least 75% of their total assets in equities. The nature of the fund makes it inappropriate for short-term investment. Income from the fund gets reinvested and is reflected in the price of the shares in the fund. Portfolio transaction costs are also bound to have an impact on the fund’s performance. The shares of this fund are eligible for buying and selling on a daily basis.

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Vanguard US Equity Index: Important Information

Name: Vanguard US Equity Index Acc

Manager: Vanguard Investments UK, Limited

Type: Open Ended Investment Company

ISIN: GB00B5B71Q71

Sector: North America

Launched: 23/06/2009

OCF: 0.1 %

Risk Rating: 4

3 Year Sharpe: 0.69

3 Year Alpha: -1.09

Yield: 1.4 %

Benchmark: S&P Total Market TR GBP

This fund’s low ongoing charges allow you to keep more of your returns, speeding your progress towards your goals. In real life, your returns are likely to fluctuate. You should also remember that the value of investments can go up or down and you might get back less than you invested. Transaction costs also apply and are incurred when the fund buys or sells holdings.

Vanguard US Equity Index: Practical Information

Depositary: The Vanguard Investments Funds ICVC (“VIF”) depositary is State Street Trustees Limited.

Documents, prices of shares, and further information: You can obtain copies of the prospectus and the latest annual and semi-annual report and accounts for VIF, along with the latest published prices of shares and other information on the Fund, from the Vanguard website.

Sub-funds: VIF is an umbrella fund with segregated liability between sub-funds. This means that the assets of the Fund are maintained separately under law from the assets of the other sub-funds of VIF, and each sub-fund is insulated from any liabilities or claims associated with the other sub-funds. 

Prices: The last published prices of units in the Fund can be found on the Vanguard website.

Tax: Your country’s tax legislation may have an impact on your personal tax position. You are recommended to consult your professional tax adviser. 

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