Investing in Diversified Multi-Cap Opportunities

Written By Michael Gary Scott

Mutual funds provide investors with diversification, allowing them to invest in multiple stocks simultaneously. They offer liquidity, making it convenient to buy and sell. Today, the focus is on a multi-cap fund, VSMPX, with the potential to earn over 10% appreciation in the next twelve months.

Exploring Vanguard Total Stock Market Index Fund Institutional Plus Shares

The VSMPX fund provides exposure to the entire U.S. stock market, including growth and value stocks of small, mid, and large-cap companies. Noteworthy is its exceptionally low expense ratio of 0.02% and broad diversification. Currently, VSMPX holds 3,794 holdings with total assets of $1.31 trillion.

On TipRanks, VSMPX has a Moderate Buy consensus rating. This is based on 2,322 stocks with a Buy rating, 1,364 stocks with a Hold rating, and 108 stocks with a Sell recommendation. The average VSMPX mutual fund price target of $243.65 implies 11.22% upside potential from the current levels.


VSMPX has delivered a return of about 18% over the past year. Moreover, its top three holdings include technology giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN).

Potential for Growth and Value Investors

Investors seeking exposure to multi-cap growth and value stocks could consider VSMPX. Analysts’ average price target suggests that VSMPX provides an upside potential of about 11% over the next 12 months.

Disclosure


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