Fund of the Week: Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX)

Welcome to MutualFunds.com. Please help us personalize your experience.

Select the one that best describes you

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission, we hope you enjoy your experience

Channels

Find the latest content and information here about the 2019 Charles Schwab Impact Conference.

Advisors

Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.

Content focused on helping financial advisors build successful client relationships and grow their business.

Content geared towards helping financial advisors build better client portfolios.

Get insights on the industry trends and investment news from leading fund managers and experts.

blue stock chart

News

Fund of the Week: Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX)

Jun 18, 2015

Recent market volatility and the acceleration of emerging-market outflows helped in deciding the fund of the week. The Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX) is a vanilla large-cap equity blend that is passively managed. With $178 billion in assets under management, the primary focus of the fund is to track the S&P 500 and its constituents. Weightings in the fund are accordingly adjusted based on movements in the index.

Inside the Fund

Type of Fund

This fund only accepts institutional investors with a minimum investment of $200 million.

Manager Profile

Donald Butler is the manager of the fund and his qualifications extend to a CFA accreditation and a BSBA degree from Shippensburg University. He has been with Vanguard since 1992 and has been managing the fund since 2009.

Historical Performance

VIIIX Performance Chart
The fund’s year-to-date performance is a conservative 2.1%, which puts it in the 3rd quintile for the category. This is a fall from the previous year’s performance numbers when the fund sat in the 1st quintile. The S&P 500 in 2014 returned 11.39% (excluding dividends).

Dividend Analysis

The fund has a dividend yield of 3.6% with a quarterly payment frequency. Payment months are March, June, September and December.

Portfolio Sector Weightings

VIIIX Sector Weightings
Technology, health care and financial services sector weightings put the fund in the 1st quartile. Recent weakness in the energy and mining sectors have seen the weightings fall to 7.94% and 3.03% respectively.

Top 10 Holdings

The top holdings for the fund match that of the S&P 500, however the weightings are slightly different. According to the May S&P 500 constituent list, Microsoft is second only to Apple, and Procter and Gamble rounds out the top 10 in last position.


The Bottom Line

The VIIIX, although relatively vanilla in its portfolio breakdown, is an effective yield play and offers a base of consistency from a performance perspective. The management fees and expense ratio are also quite low at 0.04% (of AUM), which puts the fund in the top quartile.

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Please Enter Your Email
Please Select Your Advisor Type

Popular Articles

Download Our Free Report

Why 30 trillion is invested in mutual funds book