Vanguard Institutional Product Summary Seeks to track the performance of the Standard & Poor s 500. U.S. large-cap equity diversified across growth and value styles. Passively managed, full-replication approach. remains fully invested. Low expenses minimize net tracking error. Vanguard Style View : Large Blend portfolio of large-capitalization U.S. stocks diversified across investment styles. Market capitalization Large Mid Small Investment style Value Blend Growth Central tendency Expected range of fund holdings Quarterly Commentary For the quarter ended December 31, the returned 6.64%. Global stock markets were resilient during the fourth quarter, with emerging markets outperforming their developed-market counterparts (a trend that characterized much of 2017). In the United States, stocks hit record highs as investors welcomed tax reform legislation, strong corporate profits, low unemployment, and decent economic growth. The Federal Reserve also acknowledged the health of the economy, raising rates for a third time in December. Although expansionary monetary policies outside the United States supported bond prices during the year, central bank actions suggested a bias toward less accommodation in 2018. Information technology (+9.0%), financials (+8.6%), and consumer discretionary (+9.8%) were the top contributors to the index. The sector with the smallest gain was utilities (+0.2%). For the 12 months ended December 31, the index returned 21.83%. The five largest-weighted sectors all boosted results. Information technology (+38.8%), health care (+22.0%), and financials (+22.2%) added the most. Energy ( 1.0%) and telecommunication services ( 1.1%) detracted. People and Process Vanguard Institutional seeks to track the investment performance of the Standard & Poor s 500, an unmanaged benchmark representing U.S. large-capitalization stocks. Using full replication, the portfolio holds all stocks in the same capitalization weighting as the index. The experience and stability of Vanguard s Equity Group have permitted continuous refinement of techniques for reducing tracking error. The group uses proprietary software to implement trading decisions that accommodate cash flow 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 Group Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world s largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard s Equity, Quantitative Equity, and Fixed Income Groups. Joseph Brennan, CFA, Principal and global head of Vanguard's Equity Group, is responsible for all equity index funds. The Equity Group manages indexed 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 Institutional since 1990. Investment Manager Biographies Donald M. Butler, CFA, Principal. Portfolio manager. Advised the fund since 2000. Worked in investment management since 1997. B.S.B.A., Shippensburg University. Michelle Louie, CFA. Portfolio manager. Advised the fund since 2017. Worked in investment management since 2011. B.S., The American University. M.B.A., Georgia Institute of Technology. For institutional use only. Not for distribution to retail investors.
Vanguard Institutional Total Returns Quarter Year to Date 1 Year 3 Years 5 Years 10 Years Institutional Institutional Shares (7/31/1990) 6.63% 21.79% 21.79% 11.38% 15.76% 8.50% Institutional Plus Shares (7/7/1997) 6.64 21.82 21.82 11.41 15.78 8.52 6.64 21.83 21.83 11.41 15.79 8.50 The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month end, visit our website at vanguard.com/performance. Figures for periods of less than one year are cumulative returns. All other figures represent average annual returns. Performance figures include the reinvestment of all dividends and any capital gains distributions. All returns are net of expenses. Note: Institutional class shareholders are required to maintain a minimum balance of $5 million. Institutional Plus class shareholders are required to maintain a minimum balance of $200 million.
Vanguard Institutional Quarterly Returns: Institutional Shares Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year-End Assets (Millions) 2017 6.05% 3.08% 4.48% 6.63% $140,591 2016 1.34 2.45 3.85 3.82 11.93% 11.96% 120,014 2015 0.94 0.28-6.45 7.05 1.37 1.38 104,705 2014 1.79 5.23 1.12 4.93 13.65 13.69 102,114 2013 10.60 2.91 5.23 10.50 32.35 32.39 87,843 2012 12.58-2.75 6.35-0.39 15.98 16.00 68,055 2011 5.91 0.10-13.87 11.81 2.09 2.11 58,399 2010 5.39-11.43 11.29 10.75 15.05 15.06 54,686 2009-10.98 16.01 15.61 6.06 26.63 26.46 44,401 2008-9.45-2.73-8.34-21.91-36.95-37.00 31,543 2007 0.63 6.27 2.05-3.34 5.47 5.49 45,847 Quarterly Returns: Institutional Plus Shares Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year-End Assets (Millions) 2017 6.06% 3.08% 4.48% 6.64% $91,567 2016 1.34 2.45 3.85 3.82 11.95% 11.96% 91,481 2015 0.95 0.28-6.44 7.05 1.39 1.38 90,042 2014 1.80 5.23 1.13 4.93 13.68 13.69 85,611 2013 10.60 2.91 5.24 10.51 32.37 32.39 74,915 2012 12.58-2.75 6.35-0.37 16.00 16.00 49,286 2011 5.92 0.10-13.87 11.83 2.12 2.11 35,141 2010 5.40-11.43 11.30 10.75 15.07 15.06 33,643 2009-10.97 16.01 15.63 6.06 26.66 26.46 24,767 2008-9.44-2.73-8.33-21.90-36.94-37.00 17,643 2007 0.64 6.27 2.05-3.34 5.50 5.49 25,776 Volatility Measures R-Squared Beta 1.00 1.00 DJ US Total Stock Mkt Float Adj Idx 0.99 0.98 R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark.
Vanguard Institutional Facts Institutional Shares Institutional Plus Shares Number 0094 0854 Ticker VINIX VIIIX Newspaper Listing InstIdx InstPlus CUSIP Number 922040100 922040209 Assets (millions) (Total $232,158) $140,591 $91,567 Inception 7/31/1990 7/7/1997 Expense Ratio (as of 11/2017) 0.035% 0.02% Equity Characteristics Top 10 Largest Holdings % of Total Net Assets Apple Inc. 3.8% Microsoft Corp. 2.9 Alphabet Inc. 2.7 Amazon.com Inc. 2.0 Facebook Inc. 1.8 Berkshire Hathaway Inc. 1.7 Johnson & Johnson 1.6 JPMorgan Chase & Co. 1.6 Exxon Mobil Corp. 1.5 Bank of America Corp. 1.2 Total 20.8% The holdings listed exclude any temporary cash investments and equity index products. Number of stocks 505 505 Median market cap $94.4 Billion $94.4 Billion Average market cap $196.6 Billion $196.7 Billion Price/earnings ratio 23.2x 23.2x Price/book ratio 3.2x 3.2x Return on equity 16.0% 16.0% Earnings growth rate 9.6% 9.6% Equity yield (dividend) 1.8% 1.8% Foreign holdings 0.1% 0.0% Short-term reserves 0.1% Turnover rate (fiscal year end) 4.8% Sector Diversification (% of Stocks) Overweight/ Underweight Consumer Discretionary 12.2% 12.2% 0.0 Consumer Staples 8.2 8.2 0.0 Energy 6.1 6.1 0.0 Financials 14.8 14.8 0.0 Health Care 13.8 13.8 0.0 Industrials 10.2 10.2 0.0 Information Technology 23.8 23.8 0.0 Materials 3.0 3.0 0.0 Other 0.0 0.0 0.0 Real Estate 2.9 2.9 0.0 Telecommunication Services 2.1 2.1 0.0 Utilities 2.9 2.9 0.0 Total 100.0% 100.0% Sector categories are based on the Global Industry Classification Standard (GICS), except for the Other category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.
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