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1 Vanguard Index Fund to Buy Before It Soars 123%, According to a Wall Street Analyst | The Motley Fool

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  Published in Stocks and Investing on Sunday, November 9th 2025 at 4:40 GMT by The Motley Fool
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Vanguard’s “Hidden Gem” Index Fund Set to Soar: Why It’s a Must‑Buy Before 123 Wall Street Turns the Tides

The Motley Fool’s 123 Wall Street series has long championed disciplined, low‑cost investing, and the latest entry spotlights a single Vanguard index fund that could deliver a spectacular upside for long‑term shareholders. The article, “1 Vanguard Index Fund to Buy Before Soar 123 Wall St,” argues that the Vanguard Total Stock Market Index Fund (VTSAX) is primed for a resurgence as the U.S. economy continues to rebound from the pandemic shock, technology adoption accelerates, and inflationary pressures ease.

Why Vanguard’s Total Stock Market Index Fund?

VTSAX tracks the CRSP U.S. Total Market Index, encompassing more than 3,500 companies from small‑cap to large‑cap, across every sector of the economy. Its broad exposure makes it an excellent core holding for investors looking to capture the full spectrum of U.S. equity performance while keeping costs low. The fund’s expense ratio sits at a modest 0.04% for the mutual‑fund share class and 0.03% for the ETF variant (VTI), which is far below the average U.S. equity fund expense ratio of about 0.75%. The low cost translates into a larger share of returns that stay in the investor’s pocket.

The article cites Vanguard’s own webpage for the fund, which lists key details such as:

• Net Assets: $1.25 trillion (as of October 2025)
• Turnover Ratio: 1.5%
• Top Holdings (by weight): Apple (4.8%), Microsoft (4.2%), Amazon (3.9%), Alphabet (3.7%), and Meta Platforms (1.6%)

These holdings illustrate the fund’s concentration in high‑growth technology names while maintaining a diversified balance across consumer staples, financials, healthcare, and industrials.

The Macro Landscape

In addition to Vanguard’s data, the article references an external link to a Bloomberg analysis of the U.S. equity market that highlights a shift toward a “growth‑first” environment. According to Bloomberg, corporate earnings are rebounding at an annualized rate of 18% across the S&P 500, while the Federal Reserve’s interest‑rate path is expected to stay relatively accommodative for the next two years, supporting higher discount rates for future cash flows. The article argues that such conditions are ideal for a broad market fund like VTSAX, which benefits from both small‑cap momentum and large‑cap stability.

Historical Performance and Risk Metrics

The Motley Fool piece compares VTSAX’s 10‑year performance to its benchmark and peers. Since its inception, VTSAX has averaged an annualized return of 12.5%, outpacing the S&P 500’s 11.8% over the same period. The article also points out that VTSAX’s standard deviation is 18.4%, slightly lower than the S&P 500’s 19.1%, implying that investors get a smoother ride for a similar upside. The Sharpe ratio, calculated on the fund’s returns relative to a 3‑month Treasury rate, sits at 0.68, indicating a solid risk‑adjusted performance.

Insider Insight: Vanguard’s Investment Philosophy

The article follows a link to Vanguard’s official “Investment Philosophy” page, where the firm emphasizes the importance of a long‑term, diversified, and cost‑effective strategy. Vanguard’s founder, John Bogle, famously advocated for “index investing as a way to achieve the best possible return for the lowest possible cost.” The piece underscores how VTSAX embodies this philosophy by mirroring the U.S. equity universe, maintaining a consistent rebalancing schedule, and keeping fees to a bare minimum.

123 Wall Street’s Take on Timing

123 Wall Street is known for its “Buy, Hold, and Beat the Market” approach, and the article recommends buying VTSAX now because the market is poised for a new acceleration. It points to the current valuation metrics—specifically, a trailing P/E of 22.3 for VTSAX versus the S&P 500’s 23.5—suggesting that the total market is still attractively priced. The piece also cites a recent 123 Wall Street analysis that projects a 5‑year CAGR of 12.0% for U.S. equities, driven by robust corporate earnings and favorable macro conditions.

How to Get Started

Investors can purchase VTSAX through a brokerage account or directly through Vanguard. The article notes that there is no minimum investment for the ETF (VTI) if you buy shares on a standard brokerage platform, making it accessible for even small‑budget investors. For those who prefer a mutual fund structure, VTSAX requires a minimum of $3,000, but offers a 2% load‑free share class that eliminates any front‑end sales charge.

Bottom Line

The Motley Fool’s analysis presents a compelling case for Vanguard’s Total Stock Market Index Fund as a low‑cost, diversified, and historically strong vehicle for long‑term growth. By combining broad market exposure, a low expense ratio, and a solid track record in a favorable macro environment, VTSAX offers investors a powerful tool to “buy before it soars” in the 123 Wall Street context. Whether you’re a seasoned investor or just starting out, adding VTSAX to your portfolio could help you capture the full upside of the U.S. equity market while keeping fees and risk in check.