uploads///Portfolio Breakdown of the VIGRX

Understanding the Portfolio Changes in the Vanguard Growth Index Fund in 2016

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Fund overview

The Vanguard Growth Index Fund Investor Shares (VIGRX) is an index fund, which means that it passively tracks an index and is not actively managed. The fund is “designed to track the performance of the CRSP US Large Cap Growth Index, a broadly diversified index predominantly made up of growth stocks of large US companies…The fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same.”

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As of the end of June, VIGRX was invested in 330 stocks, managing assets worth $50.1 billion. As of the June portfolio, its equity holdings included Walt Disney (DIS), McDonald’s (MCD), AbbVie (ABBV), QUALCOMM (QCOM) and Walgreens Boots Alliance (WBA), which make up a combined 5.6% of the fund’s equity holdings.

Portfolio changes

Investors should always remember that VRGIX is an index tracking fund. So when we talk about its portfolio details, we’re essentially discussing the underlying index.

Information technology, consumer discretionary and heathcare are the main sectors of the fund, making up a combined 67% of the fund’s assets. Financials and consumer discretionary stocks make up a little less than 10% of the portfolio apiece.

Three years ago, one-quarter of the portfolio was invested in tech stocks, but subsequent index rebalancing has resulted in the sector forming 30% of assets. While the consumer discretionary sector has more or less maintained its share of the portfolio pie over the past three years, consumer staples have seen their share decline and then rise during the period. The information technology and healthcare sectors have also seen their respective portfolio weights rise in the period.

Because this fund’s performance can be considered as a surrogate benchmark for US large-cap mutual funds, let’s see how the fund has fared year-to-date in 2016.

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