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Faltering Techs Pull Down Vanguard S&P 500 Funds

Honestly, things could have been worse for these Vanguard funds.

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It may be of little consolation to their shareholders, but things could have been worse for Vanguard 500 Index (VFINX) and Vanguard Institutional Index (VINIX).

Although the tech wreck has not spared these S&P 500 index funds, they are still holding up better than most of their peers. To be sure, when the broad market stumbles, these portfolios will fall, too, as they have in early 2001. A handful of tech stocks have taken a particularly big toll here, including Cisco Systems (CSCO) and EMC (EMC). But these funds have not suffered disproportionately. Although they have lost more than 12% for the year to date through March 16, 2001, that return is still better than nearly two thirds of their large-blend peers'.

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Scott Cooley has a position in the following securities mentioned above: VINIX. Find out about Morningstar’s editorial policies.

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