The AI (ChatGPT) ESG Stock Investing Guide: Vanguard FTSE Social Index Fund Admiral Shares (VFTAX)

Here is the response from ChatGPT for the prompt discuss Vanguard FTSE Social Index Fund Admiral Shares (VFTAX) stocks held 500 words entered on May 2, 2023.

The Vanguard FTSE Social Index Fund Admiral Shares (VFTAX) is a mutual fund that seeks to track the performance of companies with strong environmental, social, and governance (ESG) practices. This fund is designed for investors who are interested in aligning their investments with their personal values while still seeking long-term returns.

The fund tracks the performance of the FTSE4Good US Select Index, which includes approximately 380 companies that have been screened for their ESG practices. The screening process includes assessments of each company's performance in areas such as climate change, labor standards, human rights, and corporate governance. The companies that pass these assessments are included in the index.

The fund is managed by Vanguard, one of the world's largest investment companies with over $7.2 trillion in assets under management as of 2021. Vanguard is known for its low-cost, passively managed funds, which aim to provide investors with broad market exposure while keeping fees to a minimum.

As of March 31, 2023, the fund held investments in 422 different stocks. The fund's largest holdings were in technology companies, including Apple Inc. (6.1%), Microsoft Corporation (5.8%), and Alphabet Inc. (4.0%). These three companies alone made up more than 15% of the fund's total holdings.

Other sectors that the VFTAX fund held significant investments in included healthcare (13.9%), financials (13.3%), and consumer discretionary (12.5%). The fund also held smaller positions in a number of other sectors, including industrials, consumer staples, and communication services.

Investors in the Vanguard FTSE Social Index Fund Admiral Shares can benefit from exposure to a diversified portfolio of US companies that have strong ESG practices. These companies tend to be more resilient in the face of environmental and social risks, as well as more likely to adopt sustainable business practices that can lead to long-term growth.

One of the advantages of the Admiral Shares version of this fund is that it has a lower expense ratio compared to the regular Investor Shares version (VFTSX). As of 2021, the expense ratio for VFTAX is 0.14%, while the expense ratio for VFTSX is 0.20%. This means that investors in VFTAX pay lower fees, which can help to increase their overall returns.

Furthermore, by investing in companies that prioritize ESG factors, investors can signal their support for sustainability and responsible business practices. This can create positive change in the business world, as companies that prioritize ESG issues are more likely to attract investment and improve their practices over time.

However, it is important to note that the Vanguard FTSE Social Index Fund Admiral Shares is not without its limitations. Firstly, the fund only includes US companies, which means that investors looking for global exposure will need to look elsewhere. Additionally, the screening process used by the fund may not capture all aspects of a company's ESG performance, and some investors may have different views on what constitutes a strong ESG practice.

Overall, the Vanguard FTSE Social Index Fund Admiral Shares is a useful investment vehicle for investors who are interested in aligning their investments with their values. By investing in companies with strong ESG practices, investors can potentially benefit from long-term growth while supporting sustainable and responsible business practices. The lower expense ratio of VFTAX compared to VFTSX is an added benefit for investors. However, as with any investment, it is important to do your own research and consider your own investment goals and risk tolerance before investing.

Table and Chart of VFTAX Performance (From buyupside.com. Not from chatGPT.)

See what a $1,000 investment in Vanguard FTSE Social Index Fund Admiral Shares (VFTAX) is worth today.

Values are based on monthly closes adjusted for splits and dividends from Alpha Vantage.

VFTAX Returns
Start DateMar-29-2019
Start Price$24.51
End DateMar-26-2024
End Price$49.37
# Prices61
Min DateMar-31-2020
Min Price$23.09
Max DateMar-26-2024
Max Price$49.37
Total Return101.44%
Annualized Return14.77%
Current Value of $1,000 Purchase$2,014
Number Returns1,830
Average Return23.97%
Number Profitable Returns1,501
Percent Profitable Returns82.02%
Number Unprofitable Returns329
Percent Unprofitable Returns17.98%
Profitable to Unprofitable Returns Ratio4.56
Dividend Chart





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