A sound investment process and strong management team underpin Vanguard Russell 1000 ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy merits a High Process Pillar rating. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm a High Parent Pillar rating. People, Process and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Microsoft

Apple

NVIDIA

Amazon

Alphabet

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Eli Lilly

JPMorgan Chase & Co

The fund fully replicates the Russell 1000, which selects the largest 1,000 US companies that pass its liquidity and investability screens. Eligible stocks must have at least 5% of their total shares publicly available and a minimum market cap of $30 million to be considered for inclusion. The index rebalances quarterly and reconstitutes annually.

Market-cap-weighting harnesses the market's collective wisdom on a stock’s relative value and helps reduce turnover and associated trading costs. The index also implements buffers along the lower band of the market-cap breakpoint for current constituents to reduce unnecessary turnover during reconstitution. Constituents can stay in the index if their market caps are within 2.5% of the market-cap breakpoint. 

The end portfolio approximates the contours of the large- and mid-cap market. Its sector composition is in line with that of the Morningstar US Large-Mid Cap Index, with no sector deviating by more than 1%, as of January 2024. Its value-growth bias also falls in line with the Morningstar bogy. 

Market-cap-weighting consistently guides the index into the largest and most established names. As of January 2024, 86% of the strategy's assets were companies with wide or narrow Morningstar Economic Moat Ratings, showcasing the portfolio's durability.  

This portfolio tends to diversify away stock-specific risk. As of January 2024, its top 10 holdings represented 29% of the portfolio, generally lower than its average peer. However, the share of assets in this fund’s largest holdings steadily climbed in 2023, reflecting the market's narrow rally. The recent outperformance of a few technology companies, such as Apple AAPL, Microsoft MSFT, Amazon.com AMZN, Nvidia NVDA, Alphabet GOOGL, Tesla TSLA, and Meta Platforms META, commonly known as the "Magnificent Seven," ballooned the top 10 holdings to its highest percentage over the past 40 years. The index may become less concentrated if the market rally broadens. 

The portfolio managers use derivatives to equitize cash to keep pace with the benchmark. They also engage in securities lending to generate additional income, which may partially offset fees. But the income is limited since holdings are mostly widely available for borrowing and don’t generate much lending revenue.

Note: The Process Pillar rating and analysis are indirectly assigned by an analyst. When an analyst covers a passively managed vehicle that tracks a particular index, Morningstar associates the Process Pillar rating assigned to that vehicle with the index concerned. Morningstar then maps the Process Pillar associated with a given index to any other uncovered passive strategies that track the same index. This ensures that the analyst’s view is leveraged whenever available and promotes consistency when analyzing passive vehicles associated with a given index.

High

Process

Vanguard’s equity team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are two managers listed on the fund: Nick Birkett, Aurélie Denis. The team is largely unproven, as its members only average two years of portfolio management experience. Together, they manage a total of three strategies, with a Gold asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

The Vanguard Group retains a High Parent rating. 

Mutual ownership, low costs, and a direct-to-investor playbook have helped spur Vanguard's leadership within the United States. Client service missteps notwithstanding, Vanguard over the past decade has grown its market share of U.S. open-end and exchange-traded fund assets at about a 5% annualized clip. At that rate, Vanguard's portion of the U.S. industry will cross 50% around 2035.

True, some competitors can now match or even undercut Vanguard on fees for broad market exposure. But Vanguard's burgeoning advice business could help it keep or even extend that lead. Through Digital Advisor and Personal Advisor Services, Vanguard has built an increasingly compelling ecosystem of advice for investors with simple to complex needs.

Vanguard is also using its advice business to expand overseas, but that's a work in progress. Of Vanguard's USD 7.6 trillion in global assets under management in March 2023, non-U.S. investors owned less than 10%, a figure that has changed little in recent years. Strategic shifts in China and other markets account for the slow pace, including returning money to institutions that had been layering on fees. Vanguard hopes to recoup that money and more by focusing on individual investors and the advisors who serve them. Provided Vanguard sticks to its playbook, its advantages should translate into success abroad, too.

Parent

Vanguard Russell 1000 ETF

VONE tracks a market-cap-weighted index of the 1000 largest US companies.

The fund tracks a market-cap-weighted index of the 1000 largest US companies.

Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Vanguard Russell 1000 ETF (VONE), a passively managed exchange traded fund launched on 09/22/2010.

Should Vanguard Russell 1000 ETF (VONE) Be on Your Investing Radar?

Vanguard Total Bond Market ETF

SPDR Dow Jones Industrial Average ETF

SPDR Gold Trust

Vanguard Mega Cap ETF

Vanguard Mega Cap Growth ETF

Vanguard Mega Cap Value ETF

SPDR Russell 1000 Yield Focus ETF

Invesco PureBeta MSCI USA ETF

Invesco QQQ

SPDR Portfolio S&P 500 ETF

SPDR Portfolio Total Stock Market ETF

SPDR S&P 500 ETF Trust

SPDR Portfolio S&P 500 High Dividend ETF

SPDR Portfolio S&P 500 Growth ETF

SPDR Portfolio S&P 500 Value ETF

Vanguard Russell 1000 Growth ETF

Vanguard Russell 1000 Value ETF

Vanguard S&P 500 Growth ETF

Vanguard S&P 500 Value ETF

Vanguard Value ETF

Vanguard Large-Cap ETF

SPDR S&P Health Care Services ETF

Communication Services Select Sector SPDR Fund

Energy Select Sector SPDR Fund

This ETF trading model uses the Conference Board Leading Economic Index to determine “Risk-On” periods for equities. A universe is defined from the SPDR, Vanguard, and PowerShares ETF providers for the sectors healthcare, energy, communication, technology, and general multi-sector funds, holding large-mega cap stocks from the United States.

Timing The Stock Market With The Conference Board Leading Economic Index

Vanguard ESG US Stock ETF

Biggest mutual fund provider running test to let clients weigh in on shareholder matters.

Vanguard ETFs Chosen for Proxy Vote Test

iShares Russell 1000 ETF

iShares Russell 1000 Value ETF

iShares Russell 1000 Growth ETF

iShares Russell 2000 ETF

iShares Russell 3000 ETF

Direxion Daily Small Cap Bull 3x Shares

Vanguard Russell 3000 ETF

Vanguard Russell 2000 ETF

Russell's annual reconstitution event has a significant impact on $364 billion in ETF assets.

How Russell Rebalance Impacts ETFs

Investors in the US equity market seem to gravitate to ETFs based on the various indices developed by Standard and Poor's, such as the widely popular S&P 500 index.

Vanguard's Russell 1000 ETF Provides Investors With Both Large-Cap And Mid-Cap Exposure In One ETF

Schwab 1000 Index ETF

If you need to add stability to your portfolio, these index funds can help.

5 Large-Cap Index Funds That Don't Track the S&P 500

For the Vanguard Russell 1000 ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $149.91 per unit.

Analysts Anticipate The Vanguard Russell 1000 ETF To Hit $150

For the Vanguard Russell 1000 ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $146.38 per unit.

Implied Vanguard Russell 1000 ETF Analyst Target Price: $146

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself.

Analysts Anticipate The Vanguard Russell 1000 ETF Will Reach $147

For the Vanguard Russell 1000 ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $146.70 per unit.

News for Vanguard Russell 1000 ETF ETF (VONE)