Index Fund

How would you describe the Vanguard 500 Fund Admiral Shares?

• It invests in the bonds of the largest companies in the United States.

• It invests in the stocks of the largest companies internationally.

• It invests in the stocks of the largest companies in the United States.

• It invests in the bonds of the largest companies internationally.

What percentage of the fund’s assets are used for administrative and operating costs (i.e. fee charged to investors annually that is a percentage of the assets they have in the fund)?

• 0.04%

• 1.65%

• 1.86%

• 29.1%

Vanguard admiral shares offer lower fees compared to standard Vanguard shares, but require investors to have a minimum investment. What is the minimum investment for the Vanguard 500 Index Fund Admiral Shares?

• $314

• $3,000

• $10,000

• $37,000

The SEC Yield measures the expected return over the coming year. If you invested $3,000 in this fund, approximately how much would you expect to earn in dividends every year?

• $0. This fund doesn't pay dividends.

• $50

• $60

• $7

Which statement best describes the performance of the Vanguard 500 Index Fund Admiral Shares compared to the benchmark of the S&P 500 Index?

• The Vanguard 500 Index Fund Admiral Shares has underperformed the benchmark since it has to account for fees while the S&P 500 benchmark does not.

• Over every time frame (1, 3, 5, and 10 years), the Vanguard 500 Index Fund Admiral Shares has outperformed its benchmark.

• Since the Vanguard 500 Index Fund Admiral Shares mirror the S&P 500, the performance is always exactly the same.

• The Vanguard 500 Index Fund Admiral Shares consistently has average annual returns over 10%, while the S&P 500 benchmark has average annual returns below 5%.

If you invested $10,000  in VFIAX in 2010, approximately how much would it be worth in September 2020?

• $6,000

• $10,000

• $23,000

• $37,000

Which industry makes up the largest percentage of this fund’s holdings?

• Financials

• Consumer Discretionary

• Information Technology

• Communication Services

How many stocks comprise the Vanguard 500 Index Fund (VFIAX)?

• 1

• 5

• 500

• 508

Answer explanation

Why 508 companies? Some companies have different classes of stock, for example the company you know as Google has two different share classes (one has voting rights while the other doesn’t).

The top ten stocks constitute what percentage of the overall fund?

• 10.8%

• 12.6%

• 29.1%

• 36.4%

Which statement INCORRECTLY describes the Vanguard 500 Index Fund Admiral Shares?

• This fund owns stock in Microsoft and Facebook among its holdings.

• This fund will always outperform “the market.”

• This fund is diversified.

• This fund is low cost.