5 Best Index Funds to Invest In 2022

Page 1 of 5

In this article, we discuss the 5 best index funds to invest in 2022. If you want to read our detailed analysis of these ETFs, go directly to the 10 Best Index Funds to Invest In 2022.

5. Vanguard Total Stock Market Index Fund Admiral Shares (NASDAQ:VTSAX)

Vanguard Total Stock Market Index Fund Admiral Shares (NASDAQ:VTSAX) is an index fund that tracks the performance of the CRSP US Total Market Index. The index aims to measure returns of the overall stock market. It includes large, mid, small, and micro cap firms. It tracks stocks that trade on the NYSE and NASDAQ exchanges. 

A premier holding of the Vanguard Total Stock Market Index Fund Admiral Shares (NASDAQ:VTSAX) is NVIDIA Corporation (NASDAQ:NVDA), a visual computing company. At the end of the third quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $10 billion in NVIDIA Corporation (NASDAQ:NVDA), compared to 86 in the preceding quarter worth $9 billion.

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:

“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”

Page 1 of 5