The Vanguard Total Stock Market Index fund is now king when it comes to size! Thanks to the appreciation in equities this year over bonds, this fund now has more assets than any other fund. It has surpassed the previous winner who held this title for the past 5 years, the PIMCO Total Return fund. This WSJ article highlights this.
Fund flows which show the direction of where money is moving have been favoring equity funds over bond funds for awhile now. This Vanguard fund had $287 billion in assets as of the end of October compared to only $247 billion for the PIMCO fund. Clearly there is a shift taking place with more money going into stocks than bonds right now.
More and more investors are favoring a low cost passive approach to investing and Vanguard has always been the leader in this space. It will be interesting to see how these fund flows shift when we get the next recessionary period!