Financials Index Fund Admiral Shares (VFAIX)

Also available in 

more share classes

, including an 

ETF

.

Indexed to MSCI US IMI Financials 25/50

  Fact sheet (03/31/2014)

Characteristics

Stylebox

Vanguard style view is not available. This fund is not accurately defined by style, either because of the fund's investment mandate, or asset class.

Market capitalization
as of 03/31/2014

  VFAIX Benchmark

MSCI US Investable Market Financials 25/50 Index

+/- Weight
Large 30.9% 30.9% 0.0%
Medium/Large 26.2% 26.2% 0.0%
Medium 18.6% 18.6% 0.0%
Medium/Small 13.7% 13.7% 0.0%
Small 10.6% 10.6% 0.0%
Total 100.0% 100.0%  

More information about market capitalization  


Fundamentals
as of 03/31/2014

  VFAIX Benchmark

MSCI US Investable Market Financials 25/50 Index

+/- Weight
Number of stocks 522 549 – 27
Median market cap $29.4 billion $29.4 billion $0.0 billion
  VFAIX Benchmark

MSCI US Investable Market Financials 25/50 Index

Earnings growth rate 18.9% 18.9%
Short-term reserves 0.01% N/A
P/E ratio 16.9x 16.9x
P/B ratio 1.4x 1.4x
Turnover rate (Fiscal year-end 08/31/2013) 8.5% N/A
Return on equity 9.4% 9.4%
Foreign holdings N/A

Composition

Subsector weightings
as of 03/31/2014

  Subindustry
 
 VFAIX
 
Benchmark

Spliced U.S. Investable Market Financials 25/50 Index

 
+/- Weight
 
Diversified Banks 24.9% 24.9% 0.0%
Regional Banks 10.0% 10.0% 0.0%
Asset Management & Custody Banks 7.9% 7.9% 0.0%
Property & Casualty Insurance 6.2% 6.2% 0.0%
Consumer Finance 5.1% 5.1% 0.0%
Investment Banking & Brokerage 5.1% 5.1% 0.0%
Life & Health Insurance 5.0% 5.0% 0.0%
Multi-Sector Holdings 4.1% 4.1% 0.0%
Retail REIT's 4.0% 4.0% 0.0%
Specialized REIT's 3.8% 3.8% 0.0%
Multi-line Insurance 3.5% 3.5% 0.0%
Specialized Finance 2.8% 2.8% 0.0%
Residential REIT's 2.5% 2.5% 0.0%
Office REIT's 2.1% 2.1% 0.0%
Health Care REITs 2.0% 2.0% 0.0%
Insurance Brokers 2.0% 2.0% 0.0%
Mortgage REIT's 1.8% 1.8% 0.0%
Diversified REIT's 1.7% 1.7% 0.0%
Thrifts & Mortgage Finance 1.3% 1.3% 0.0%
Hotel & Resort REITs 1.2% 1.2% 0.0%
Reinsurance 1.2% 1.2% 0.0%
Industrial REIT's 0.8% 0.8% 0.0%
Real Estate Services 0.6% 0.6% 0.0%
Diversified Real Estate Activities 0.1% 0.1% 0.0%
Other Diversified Financial Services 0.1% 0.1% 0.0%
Real Estate Development 0.1% 0.1% 0.0%
Real Estate Operating Companies 0.1% 0.1% 0.0%
0%
25%
Total 100.0% 100.0%  

Sector categories are based on the Global Industry Classification Standard system.

People and process

Firms

Vanguard Equity Investment Group

Product management

Vanguard Financials Index Fund seeks to track the investment performance of the MSCI US Investable Market Financials 25/50 Index, a benchmark of large-, mid-, and small-cap U.S. stocks in the financials sector, as classified under the Global Industry Classification Standard (GICS). This GICS sector is made up of companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investment, and real estate (including REITs). Whenever possible, the fund attempts to fully replicate the target index, holding each stock in approximately the same proportion as its weighting in the index. However, the fund will use a sampling strategy if regulatory constraints or other considerations prevent it from replicating the index. Vanguard’s Equity Investment Group uses proprietary software to implement trading decisions that accommodate cash flows and maintain close correlation with index characteristics. Vanguard’s refined indexing process, combined with low management fees and efficient trading, has provided tight tracking net of expenses.

Vanguard Equity Investment Group

Firm description

Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world’s largest equity and fixed income managers. As chief investment officer and managing director, Mortimer J. Buckley oversees Vanguard’s Equity Investment and Fixed Income Groups. Joseph Brennan, CFA, Principal of Vanguard and head of Vanguard’s Equity Index Group, has oversight responsibility for all equity index funds managed by the Equity Investment Group. John Ameriks, Ph.D., Principal of Vanguard and head of Vanguard’s Active Equity Group, has oversight responsibility for all active equity funds managed by the Equity Investment Group. The Equity Investment Group manages indexed and structured equity portfolios covering U.S. and international markets. It has developed sophisticated portfolio construction methodologies and efficient trading strategies that seek to deliver returns that are highly correlated with target portfolio benchmarks. The group has advised Vanguard Financials Index Fund since 2004.

Investment Manager Biography

Jeffrey D. Miller

  • Portfolio manager.
  • Advised the fund since 2010.
  • Worked in investment management since 2007.
  • B.A., Pennsylvania State University.
  • M.B.A., Drexel University.

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