7 Best Vanguard Funds for the Return of Volatility

The best time to begin planning for volatility is when the market is calm. Start with this list of stalwart Vanguard funds.

    View All  

Best Vanguard Funds for a Volatile Market: Vanguard Total Stock Market Index (VTSMX)

total stock market
Source: Shutterstock

Expenses: 0.15%
Minimum Initial Investment: $3,000

If you’re looking for broad diversification to spread out risk, one of the best mutual funds on the market today is Vanguard Total Stock Market Index (MUTF:VTSMX).

VTSMX provides exposure to more than 3,500 stocks spread across a broad range of equity sectors and market caps. And the rock-bottom expense ratio of 0.15% is a cheap way to capture the performance of the total U.S. stock market while keeping market risk to reasonable levels.

Although most of the top holdings in VTSMX are large-caps like Microsoft, JPM and Chevron, the fund’s exposure to mid- and small caps makes it a bit higher in market risk compared to pure large-cap index like the S&P 500. However, as investors learned the hard way in the 2008 market meltdown, bear markets can hit the big boys harder than their smaller brethren.

As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities. His No. 1 holding is his privately held investment advisory firm. Under no circumstances does this information represent a recommendation to buy or sell securities.


Article printed from InvestorPlace Media, http://investorplace.com/2017/05/7-best-vanguard-funds-for-market-volatility/.

©2017 InvestorPlace Media, LLC