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Analysis of the Vanguard 500 Index Admiral Fund (VFIAX)

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Objective and strategy

The Vanguard 500 Index Admiral Shares (VFIAX) invests in 500 of the largest companies that span many industries and account for ~75% of the US stock market value. As of July 31, 2015, the Vanguard 500 Index Admiral Shares (VFIAX) was managing net assets of $215.4 billion, with holdings in 507 stocks comprising primarily large-cap US equities.

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Performance analysis

The Vanguard 500 Index Admiral Shares (VFIAX) returned -6.04% in the month of August. In the three-month period ended August 31, 2015, it returned -5.92% due to a fall in the US stock market. For reference, the monthly return of the S&P 500 was -6.42% in August, primarily driven by the meltdown in the Chinese stock market.

The Vanguard 500 Index Admiral Shares (VFIAX) generated positive returns of 0.47% for the one year ended August 31, 2015. During the previous five years, VFIAX generated returns of 15.83%.

Sectoral allocation

According to the portfolio data available as of July 2015, nearly 20% of the Vanguard 500 Index Admiral Fund (VFIAX) is invested in Information Technology (19.8%). The financial and healthcare sectors comprise 16.8% and 15.6% exposure, respectively.

The top ten stocks of the Vanguard 500 Index Admiral Fund (VFIAX) make up 17.9% of the total net assets as of August 31, 2015. Although the fund has not provided individual stock weights, the top holdings of VFIAX include Apple (AAPL), Microsoft (MSFT), Google (GOOGL), and Exxon Mobil (XOM).

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