A Great Complement to an S&P 500 Fund
Vanguard Extended Market can be used to round out a large-cap portfolio, but mind its quirks.
Vanguard Extended Market ETF (VXF) is a great complement to an S&P 500 fund. The S&P Completion Index this fund follows is an amalgamation of two groups of stocks: All of the large-cap U.S. stocks that do not meet the inclusion rules of the S&P 500 and all of the mid-, small-, and micro-cap stocks that are too small for that index. In other words, it holds nearly all U.S. stocks except for constituents of the S&P 500, resulting in roughly 3,300 holdings.
Michael Rawson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.