Want to see which funds hold a specific stock?
AAPL & MSFT & SBUX, oh my
Consider Apple (AAPL). As of December 31, 2018, 31 Vanguard ETFs® and mutual funds held AAPL. So, for example, if you own shares of Vanguard 500 Index Fund, Vanguard Windsor™ II Fund, and Vanguard Growth and Income Fund, you’d indirectly own Apple shares in 3 separate fund accounts.
And this is hardly unusual. You can find shares of both Microsoft and Johnson & Johnson in more than 30 Vanguard fund products. Walmart and Starbucks are in 28 each.
Cause for concern? Maybe not.
So what can you do? Well, for starters, don’t overreact. A little duplication isn’t necessarily a bad thing.
Because funds can invest in hundreds or even thousands of different securities, your chances of being affected by overexposure to any 1 particular stock or bond are small.
The real problem is that you might have a long list—not just 1 or 2—of duplicate stocks or bonds lurking amid multiple funds, which can reduce your diversification and increase your exposure to risk.
That’s why it’s important to know what you own. Fortunately, vanguard.com makes it easy.
Let’s say you own shares of Vanguard Total Stock Market Index Fund. As of February 28, 2019, the fund had more than 3,500 separate holdings. A quick look at its Portfolio & Management page shows you the fund’s 10 largest positions as of the most recent month-end. Or you can go deeper and view a complete list of everything in the fund. With a few simple calculations, you can gauge your personal exposure to a particular stock.
An all-in-one option
An easy way to reduce your odds of duplicating assets is to invest in just one fund.
It may seem counterintuitive to “put all your eggs in one basket.” But we think a single-fund approach can be a very effective way to invest. We offer a number of all-in-one funds that hold carefully chosen, diversified selections of existing Vanguard index funds—all tailored for particular investment goals and types of investors.
Consider our Target Retirement Funds series. It’s designed to help you build savings over the long term while helping to keep your risk exposure contained. Each of the Target Retirement Funds gives you access to thousands of U.S. and international stocks and bonds, including exposure to the major market sectors and segments.
As you get closer to retirement, the funds’ managers gradually shift each fund’s asset allocation away from stocks and toward bonds, making the fund more conservative over time. This frees you from having to manually rebalance your portfolio.
All of our Target Retirement Funds have an initial minimum investment of just $1,000, and their expense ratios are a fraction of the cost of their peers.**
Need some guidance?
Maybe a single-fund option isn’t right for you or you don’t feel comfortable changing your holdings on your own. If you’d prefer hands-on portfolio assistance, we can help.
Our investment professionals are here for you—whether you plan on managing your assets on your own, need a little professional advice from time to time, or want to build an ongoing partnership with a financial advisor.
When you work with Vanguard Personal Advisor Services®, you’ll get straightforward advice from professionals who don’t receive commissions and have only your interests in mind. Our advisors will also help you implement disciplined strategies rooted in Vanguard’s commonsense approach: diversification, low costs, and long-term investing.
You can learn more about our advisory services or call us at 877-279-1709 for more information.
*Please note, the holdings search tool is on our website for financial advisors. Please do not try to log on to your individual Vanguard accounts on the advisor website.
**Vanguard Target Retirement Funds average expense ratio: 0.12%. Industry average expense ratio for comparable target-date funds: 0.63%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2018.
All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
Diversification does not ensure a profit or protect against a loss.
Advice services are provided by Vanguard Advisers, Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited-purpose trust company.
Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.