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WorksheetsIndex Fund
Total questions: 11
Worksheet time: 8mins
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
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.
Use what you learned from analyzing the Vanguard 500 Index Fund Admiral Shares to answer this question.
Using information from the fact sheet, explain why this index fund is a good investment choice.
