The Vanguard Total Stock Market Index Fund has become the first to eclipse $1 trillion in assets, evidence of the rise in index-based investors over the past thirty years. This according to a recent article in Yahoo Finance.
The fund, launched in 1992, reached $1.04 trillion as of November 30th according to Vanguard Group data.
The article cites comments from investment adviser Nate Geraci of the ETF Store: “Given that Vanguard birthed index investing, it seems only fitting that one of their flagship funds would be the first to reach this historic mark.”
The article noted, “While soaring U.S. stocks are fueling the fund, it’s also being bolstered by falling fees, a trend stoked by Vanguard, a pioneer in low-cost passive investing.”
According to Geraci, “Investors have become much more educated on the importance of fund fees and the serial underperformance of active management,” adding that those factors could fuel the fund’s growth for decades.