6
Morningstar Analyst Rating
04-29-14
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
47.46
46.69
35.65
31.30
31.57
27.45
21.80
35.36
34.09
30.00
28.77
25.99
Total Return %
2.09
33.52
16.38
1.08
17.26
28.83
-36.99
5.57
15.63
6.09
12.61
31.42
+/-S&P 500
-0.47
1.13
0.38
-1.03
2.20
2.37
0.01
0.08
-0.16
1.18
1.73
2.74
+/-Russ 1000
-0.44
0.41
-0.04
-0.42
1.16
0.40
0.61
-0.20
0.17
-0.18
1.21
1.53
Income Return %
0.44
2.30
2.45
1.91
2.06
2.50
1.73
1.86
1.87
1.76
1.81
1.69
Capital Return %
1.65
31.22
13.93
-0.83
15.20
26.33
-38.72
3.71
13.76
4.33
10.80
29.73
Total Rtn % Rank Cat
50
31
27
31
12
39
37
47
24
44
17
11
Income $
0.21
0.81
0.76
0.60
0.56
0.54
0.61
0.63
0.56
0.50
0.47
0.34
Capital Gains $
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Expense Ratio %
.
0.05
0.05
0.05
0.06
0.07
0.08
0.07
0.09
0.09
0.10
0.15
Income Ratio %
.
1.96
2.23
1.91
1.96
2.33
2.12
1.79
1.76
1.72
1.79
1.54
Turnover Rate %
.
4
3
5
5
5
5
4
4
12
. .
Net Assets $mil
90,940
86,541
59,771
49,496
47,190
27,762
18,781
27,895
26,853
20,347
10,856
7,969
Performance
04-30-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
6.03 -11.30 11.64 11.68 17.26
6.36 -0.02 -15.23 12.14
1.08
12.91 -3.15
6.24 0.18 16.38
11.02 2.79
6.27 10.10 33.52
2.03
. . . .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
1000
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
5.37 -0.86
-0.54
64 10,537
7.83 -0.53
-0.42
42 10,783
20.73 0.29
-0.08
32 12,073
13.55 -0.28
-0.25
26 14,641
19.65 0.51
0.13
13 24,522
8.28 0.61
0.23
16 22,156
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
13.02
16
0.47
36
19.17
10
0.40
37
7.90
9
0.35
14
Potential Capital Gain Exposure: 32% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
20.73
3 Yr
13.55
+Avg
Avg
5 Yr
19.65
+Avg
Avg
10 Yr
8.28
+Avg
Avg
Incept
5.32
Other Measures
Standard Index
Best Fit Index
S&P 500
R3000
Alpha
-0.8
0.0
Beta
1.04
1.00
R-Squared
99
100
Standard Deviation
13.03
Mean
13.55
Sharpe Ratio
1.04
Morningstar’s Take
by Michael Rawson 04-29-14
With rock-bottom costs and complete market coverage,
this is the quintessential core stock fund.
Vanguard Total Stock Market Index Fund covers
virtually the entire U.S. stock market, holding more
than 3,600 securities. Investors could use this fund
exclusively for exposure to U.S stocks, or pair it with
individual stocks or with active mutual funds. The
fund’s low cost, broad diversification, and excellent
index tracking record warrant a Morningstar Analyst
rating of Gold.
The index this fund tracks represents
the dollar-weighted average of all investors’ U.S. stock
holdings. Therefore, its performance should be similar
to the average investor’s, before fees. However, its
0.05% expense ratio gives it a nearly 1% expense ratio
edge over the average large-blend fund. It is difficult
for most managers to overcome this hurdle. In fact, this
fund has beaten 84% of large-blend funds over the
past 10 years.
Total stock market indexes funds cover nearly all
listed stocks, so they are more comprehensive than the
S&P 500 Index, which focus primarily on large-cap
stocks. However, because both indexes use a
market-cap-weighting approach, they tend to be highly
correlated and have a lot of overlap. Part of the fund’s
superior performance relative to its peers over the
past decade is due to its small- and mid-cap holdings,
which have outperformed large-cap stocks during that
period. While these stocks may not continue to
outperform, the fund’s broad diversification should
serve investors well over the long run.
This fund may be an appealing holding for taxable
accounts. Because it covers the full market-cap range,
it is not forced to trade as stocks move across
market-cap segments. Its market-cap weighting
approach also helps reduce turnover because changes
in the market value of each holding mirror changes to
their weights in the portfolio. This helps reduce the
incidence of large capital gains distributions. As a
result, this fund has been among the most
tax-efficient in the large-blend category.
Address:
Vanguard Index Funds
Valley Forge, PA 19482
800-662-7447
Web Address:
Inception:
11-13-00
Advisor:
Vanguard Group, Inc.
Subadvisor:
None
NTF Plans:
Vanguard NTF
Minimum Purchase:
$10000
Add: $100 IRA: $0
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load
Management Fee:
0.03%
Actual Fees:
Mgt:0.03% Dist:
.
Expense Projections:
3Yr:$16
5Yr:$28 10Yr:$64
Income Distribution:
Quarterly
Data through April 30, 2014
Vanguard Total Stock Mkt Idx Adm
Ticker
Status Yield Total Assets
Mstar Category
VTSAX Open
1.8% $328,278 mil
Large Blend
99% 99% 99% 100% 100% 93% 100% 100% 100%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 04-14
Historical Profile
Return
Risk
Rating
Above Avg
Average
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
14.0
18.0
22.0
26.0
Portfolio Analysis
03-31-14
Share change since 02-14 Total Stocks:3692Sector
PE Tot Ret% % Assets
Apple Inc
Technology 14.7 5.73 2.29
Exxon Mobil Corporation
Energy
13.9 1.82 2.02
Google Inc Class A
Technology 29.2 -4.64 1.49
Microsoft Corporation
Technology 15.2 8.74 1.46
Johnson & Johnson
Hlth care 21.1 11.31 1.33
Wells Fargo & Co
Finan Svs 12.8 10.00 1.25
General Electric Co
Industrl
18.3 -3.28 1.24
JPMorgan Chase & Co
Finan Svs 12.9 -2.98 1.10
Chevron Corp
Energy
11.3 1.29 1.08
Procter & Gamble Co
Cnsmr Def 22.0 2.93 1.04
Berkshire Hathaway Inc C
Finan Svs 15.5 8.68 1.04
Pfizer Inc
Hlth care 19.0 2.97 0.98
International Business M Technology 13.4 5.25 0.96
Verizon Communications I
Comm Svs 10.4 -2.75 0.94
AT&T Inc
Comm Svs 10.5 4.15 0.87
Bank of America Corporat
Finan Svs 20.3 -2.70 0.87
Merck & Co Inc
Hlth care 39.8 17.88 0.80
Coca-Cola Co
Cnsmr Def 21.7 -0.52 0.73
Oracle Corporation
Technology 17.1 7.48 0.66
Citigroup Inc
Finan Svs 11.3 -8.04 0.66
Current Investment Style
Market Cap %
Giant
40.8
Large
31.0
Mid
19.3
Small
6.4
Micro
2.5
Avg $mil:
37,211
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
17.07
2.26
1.53
7.43
2.17
1.19
1.11
1.21
1.05
1.00
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
10.38
3.94
-10.84
5.86
4.88
1.00
0.74
NMF
0.86
0.27
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
18.69
7.13
13.17
0.97
0.92
1.04
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 33.35 1.16
BasicMat 3.70 1.21 4 3
CnsmrCyc11.54 1.34 12 10
FinanSvs 14.72 0.94 15 12
Real Est 3.39 2.32 4 3
Sensitive 41.95 0.96
CommSrvs 3.57 0.89 4 3
Energy 9.27 0.87 10 9
Industrl 12.29 1.08 13 11
Technlgy 16.82 0.96 20 16
Defensive24.70 0.90
CnsmrDef 8.85 0.73 11 9
Hlthcare 12.77 1.08 13 11
Utilities 3.08 0.85 4 2
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
0.6
Stocks 99.4
Bonds 0.0
Other
0.0
Foreign 1.7
©
2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor
timely. Pastperformance is no guarantee of future results.Access updated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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