Major stock markets continued to advance in the first quarter of 2024, with a number of indexes reaching record highs. In the U.S., inflation readings came in higher than expected, but consumer spending remained strong, and the economy showed continued vigor.
Global stocks returned just shy of 8% for the quarter, as measured by the FTSE Global All Cap Index. U.S. equities led the way, while those in emerging markets lagged but still finished in positive territory. Inflation readings stayed above target in many developed economies, but labor markets remained on solid footing. Given this backdrop, a number of major central banks, including the U.S. Federal Reserve, European Central Bank, and Bank of England, left interest rates unchanged.
With rate cuts looking less imminent, bond yields generally rose and prices declined. The yield of the bellwether 10-year U.S. Treasury note, for example, ended the quarter higher at 4.20%. The broad U.S. investment-grade bond market returned –0.72% (as measured by the Bloomberg U.S. Aggregate Float Adjusted Index). Within bond sectors, corporates were in negative territory but held up better than Treasuries and mortgage-backed securities.
U.S. bond market
• For the quarter, the Bloomberg U.S. Corporate Bond Index returned –0.40%, compared with –0.96% for the Bloomberg U.S. Treasury Index and –1.04% for the Bloomberg U.S. Mortgage-Backed Securities Index. Within the corporate sector, bonds of financial institutions (+0.35) outperformed those of industrials (–0.77%) and utilities (–0.77%).
• During this period, the Federal Reserve held the federal funds rate target at 5.25%–5.50%.
U.S. stock market
• For the quarter, the broad-market Russell 3000 Index returned 10.02%. Large-capitalization stocks outpaced small-caps, and growth stocks outperformed value stocks.
• For the 12 months ended March 31, the Russell 3000 Index returned 29.29%, with technology, consumer discretionary, and financials contributing the most to performance.
Money Market
• Money market yields remained about the same during the quarter. As of March 31, the 7-day SEC yield on Vanguard Federal Money Market Fund was about 5.30%, with a weighted average life of 49 days. The fund maintained its high-quality portfolio and continued to benefit from broad diversification and low fees.
International stock market
• For the quarter, Asia-Pacific stocks (+5.60%) outperformed those from Europe (+4.90%) and emerging markets (+2.04), as measured by the FTSE Developed Asia Pacific All Cap Index, FTSE Developed Europe All Cap Index, and FTSE Emerging Markets All Cap China A Inclusion Index, respectively.
• For the 12 months, stocks outside the United States returned 13.81%, as measured by the FTSE All-World ex US Index. Financials, technology, and industrials contributed the most to performance.
Footnotes
- Expense ratios are current as of 03/31/2024.
- Expense ratios are assessed by the Vanguard mutual funds/exchange-traded funds (ETFs) and vary based on allocation; Vanguard Charitable does not itself charge investment fees. While they may be invested in mutual funds or ETFs, the investment options are not themselves mutual funds, nor are they publicly traded. They are not available for investment by any individual or organization apart from Vanguard Charitable. As such, prospectuses only exist for the underlying mutual funds, and not for the Vanguard Charitable investment options.
- Account expense ratios utilize the Institutional Plus or Institutional Select share class of the underlying Vanguard mutual funds where applicable.
- Funds underlying Vanguard Charitable investment options may change without notice so long as the new underlying fund has similar characteristics and goals as the previous underlying fund.
- Income benchmark: 80% Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index, 14% Spliced Total Stock Market Index, 6% Spliced Total International Stock Market Index. Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index: Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009; Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter. Spliced Total Stock Market Index: Dow Jones Wilshire 5000 Index through April 22, 2005; MSCI US Broad Market Index through June 2, 2013; and CRSP US Total Market Index thereafter. Spliced Total International Stock Market Index: Total International Composite Index through August 31, 2006; MSCI EAFE + Emerging Markets Index through December 15, 2010; MSCI ACWI ex US IMI Index through June 2, 2013; and FTSE Global All Cap ex US Index thereafter.
- Conservative Growth benchmark: 60% Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index, 30% Spliced Total Stock Market Index, and 10% Spliced Total International Stock Index. Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index: Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009; Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter. Spliced Total Stock Market Index: Dow Jones Wilshire 5000 Index through April 22, 2005; MSCI US Broad Market Index through June 2, 2013; and CRSP US Total Market Index thereafter. Spliced Total International Stock Market Index:Total International Composite Index through August 31, 2006; MSCI EAFE + Emerging Markets Index through December 15, 2010; MSCI ACWI ex US IMI Index through June 2, 2013; and FTSE Global All Cap ex US Index thereafter.
- Moderate Growth benchmark: 60% Wilshire 5000 Index and 40% Lehman Aggregate Bond Index through December 31, 2009; 45% Balanced Composite Index, 45% Wellington Composite Index, and 10% Spliced Total International Stock Index thereafter. Balanced Composite Index: Made up of two unmanaged benchmarks, weighted 60% Dow Jones Wilshire 5000 Index and 40% Lehman Aggregate Bond Index through May 31, 2005; 60% MSCI US Broad Market Index and 40% Bloomberg Barclays Capital Aggregate Bond Index through January 14, 2013; and 60% CRSP US Total Market Index and 40% Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter. Wellington Composite Index: 65% S&P 500 Index and 35% Lehman Long Credit AA or Better Index through February 29, 2000; 65% S&P 500 Index and 35% Bloomberg Barclays Capital Credit A or Better Index thereafter. Spliced Total International Stock Market Index: Total International Composite Index through August 31, 2006; MSCI EAFE + Emerging Markets Index through December 15, 2010; MSCI ACWI ex US IMI Index through June 2, 2013; and FTSE Global All Cap ex US Index thereafter. *On Thursday, April 13, 2023, the underlying funds of the Moderate Growth investment changed to 42% Vanguard Total Stock Market Index Fund (VSMPX), 40% Vanguard Total Bond Market Index Fund (VBMPX), and 18% Vanguard Total International Stock Index Fund (VTPSX). Previously, the composition had been 45% Vanguard Balanced Index Fund (VBAIX), 45% Vanguard WellingtonTM Fund (VWENX), and 10% Vanguard Total International Stock Index Fund (VTPSX). The investment performance report for the first quarter of 2023 reports the underlying funds as of 03/31/2023. The web page lists the current underlying funds as of 04/13/2023.*
- Growth benchmark: 80% Wilshire 5000 Index and 20% Lehman Aggregate Bond Index through December 31, 2009; 55% Spliced Total Stock Market Index, 20% Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index, and 25% Spliced Total International Stock Market Index thereafter. Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index: Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009; Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter. Spliced Total Stock Market Index: Dow Jones Wilshire 5000 Index through April 22, 2005; MSCI US Broad Market Index through June 2, 2013; and CRSP US Total Market Index thereafter. Spliced Total International Stock Market Index: Total International Composite Index through August 31, 2006; MSCI EAFE + Emerging Markets Index through December 15, 2010; MSCI ACWI ex US IMI Index through June 2, 2013; and FTSE Global All Cap ex US Index thereafter.
- The underlying fund for the Money Market investment pool has been updated to Vanguard’s Cash Reserves Federal Money Market Fund, reducing the expense ratio to 0.10% as of October 27, 2022. To learn more, read our investment lineup update.
- Short-Term Treasury Inflation-Protected Securities (Short-Term TIPS) benchmark: Bloomberg U.S. 0-5 YearTreasury Inflation Protected Securities Index.
- Total Bond benchmark: Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index reflects the performance of the Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009; Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter.
- Total International Bond benchmark: Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged: Includes government, government agency, corporate, and securitized non-U.S. investment grade fixed-income investments, all issued in currencies other than the U.S. dollar and with maturities of more than one year.
- Total Equity benchmark: 55% S&P 500 Index, 15% S&P Completion Index, and 30% Spliced Total International Stock Market Index. Spliced Total International Stock Market Index: Total International Composite Index through August 31, 2006; MSCI EAFE + Emerging Markets Index through December 15, 2010; MSCI ACWI ex US IMI Index through June 2, 2013; and FTSE Global All Cap ex US Index thereafter.
- Total U.S. Stock benchmark: Total U.S. Stock benchmark: Spliced Total Stock Market Index reflects the performance of the Dow Jones Wilshire 5000 Index through April 22, 2005; MSCI US Broad Market Index through June 2, 2013; and CRSP US Total Market Index thereafter.
- S&P 500 benchmark: Standard & Poor’s 500 Index.
- Large-Cap Value benchmark: CRSP US Large Cap Value Index.
- Large-Cap Growth benchmark: CRSP US Large Cap Growth Index.
- Total International Stock benchmark: Spliced Total International Stock Market Index reflects the performance of the Total International Composite Index through August 31, 2006; MSCI EAFE + Emerging Markets Index through December 15, 2010; MSCI ACWI ex US IMI Index through June 2, 2013; and FTSE Global All Cap ex US Index thereafter.
- Extended Market benchmark: S&P Completion Index.
- Real Estate benchmark: MSCI U.S. Investable Market Real Estate 25/50 Index.
- Ultra-Short-Term Bond benchmark: Bloomberg U.S. Treasury Bellwethers: 1 Year Index.
- Core Bond benchmark: Bloomberg U.S. Aggregate Float Adjusted Index.
- Windsor II benchmark: Russell 1000 Value Index.
- U.S. Growth benchmark: Russell 1000 Growth Index.
- International Core Stock benchmark: MSCI All Country World Index ex USA Net.
- High-Yield Corporate benchmark: High-Yield Corporate Composite Index.
- Dividend Growth benchmark: S&P U.S. Dividend Growers Index Total Return.
- Explorer benchmark: Russell 2500 Growth Index.
- Commodity Strategy benchmark: Bloomberg Commodity Index Total Return.
- Balanced Index benchmark: Balanced Composite Index: Weighted 60% Dow Jones U.S. Total Stock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) and 40% Lehman Brothers U.S. Aggregate Bond Index through May 31, 2005; 60% MSCI US Broad Market Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index through December 31, 2009; 60% MSCI US Broad Market Index and 40% Bloomberg Barclays U.S. Aggregate Float Adjusted Index through January 14, 2013; and 60% CRSP US Total Market Index and 40% Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter.
- Wellington benchmark: Wellington Composite Index: 65% S&P 500 Index and 35% Lehman U.S. Long Credit AA or Better Bond Index through February 29, 2000; 65% S&P 500 Index and 35% Bloomberg Barclays U.S. Credit A or Better Bond Index thereafter.
- European Stock benchmark: Spliced European Stock Index reflects performance of the MSCI Europe Index through March 26, 2013; FTSE Developed Europe Index through September 30, 2015; and FTSE Developed Europe All Cap Index thereafter.
- Pacific Stock benchmark: Spliced Pacific Stock Index reflects performance of the MSCI Pacific Index through March 26, 2013; FTSE Developed Asia Pacific Index through September 30, 2015; and FTSE Developed Asia Pacific All Cap Index thereafter.
- Emerging Markets benchmark: Spliced Emerging Markets Index reflects performance of the Select Emerging Markets Index through August 23, 2006; the MSCI Emerging Markets Index through January 9, 2013; the FTSE Emerging Transition Index through June 27, 2013; the FTSE Emerging Index through November 1, 2015; the FTSE Emerging Markets All Cap China A Transition Index through September 18, 2016; and the FTSE Emerging Markets All Cap China A Inclusion Index thereafter.
- Underlying funds for the Values-Driven Investment options are Vanguard exchange-traded funds. However, all Vanguard Charitable investment options are traded once daily and pricing is based on the NAV.
- ESG U.S. Stock benchmark: FTSE U.S. All Cap Choice Index
- ESG International Stock benchmark: FTSE Global All Cap ex U.S. Choice Index
- ESG Global Stock Pool Benchmark: Weighted 70% FTSE U.S. All Cap Choice Index and 30% FTSE Global All Cap ex U.S. Choice Index.
- Baillie Gifford Global Positive Impact Stock Fund benchmark: MSCI All Country World Index Net.
- The potential for risk in Vanguard funds can be categorized in levels from 1 to 5. Learn more in our FAQs.
- Any Portfolio Solutions option can be combined with other Solutions, Portfolio Builders, and Values-Driven Investment options.
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