Vanguard Institutional Total Stock Market Plus (VITPX) offers potential for investors seeking large-cap blend funds with low costs and moderate performance.
VITPX focuses on large companies, typically those worth over $10 billion. This can provide more stability, making it a good fit for investors who prefer a “buy and hold” strategy. It blends established companies, giving you a mix of value and growth.
Managed by Vanguard Group since its launch in May 2001, VITPX has attracted over $27.30 billion in assets. Walter Nejman has been at the helm since April 2016, guiding the fund through various market conditions.
When it comes to performance, VITPX has a 5-year annualized return of 13.84%, placing it in the middle of its peers. For a shorter view, its 3-year return is 7.9%, also in the middle range. Just keep in mind that these returns might not include all expenses, which could lower your actual gains.
Volatility is another thing to watch. VITPX has a standard deviation of 17.68% over the past three years, which is higher than the category average. This means it can be more volatile than some of its competitors.
Risk is also a factor. VITPX has a beta of 1.03, indicating it’s likely to be as volatile as the market. Its negative alpha of -0.85 suggests that the fund has struggled to outperform the S&P 500 over the past five years.
On the cost side, VITPX is a no-load fund with an expense ratio of just 0.02%, significantly lower than the category average of 0.85%. However, keep in mind that the minimum initial investment is a hefty $100 million, with subsequent investments needing to be at least $1.
For those diving into large-cap blend funds, there’s plenty more to explore. Check out Zacks.com for more insights and comparisons. If stocks are more your style, Zacks has tools for both novice and seasoned investors to help you navigate the market.
