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What Is Vanguard 500 Index's Achilles Heel?

Market-cap-weighted indexes' greatest strength is arguably also their biggest weakness.

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The following is our latest Fund Analyst Report for Vanguard 500 Index Fund (VFINX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

Vanguard 500 Index offers broadly representative and well-diversified exposure to U.S. large-cap stocks. This fund’s fee and a soundly constructed and reasonably representative portfolio leave it well-positioned to continue its long streak of generating attractive risk-adjusted returns relative to its peers over the long haul. It earns a Morningstar Analyst Rating of Gold.

Adam McCullough has a position in the following securities mentioned above: AMZN, AAPL. Find out about Morningstar’s editorial policies.