Benzinga | Aug 23, 2021 09:21AM EDT

This Day In Market History: Vanguard Launches First Index Investment Trust

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened? In 1976, The Vanguard Group launched the First Index Investment Trust, the first retail index fund. Now known as the Vanguard 500 Index Fund (NYSE:VOO), it is one of the biggest mutual funds in the world.

Where Was The Market? The Dow Jones Industrial Average traded at around 1,004.65 and the S&P 500 traded at 101.96.

Redefining The Industry The Vanguard 500 Index Fund was the first index designed for individual investors and it has gained popularity within the market since. The index is best known for its vast diversification and exposure to the largest U.S. companies, as well as its attractively low costs.

This index fund has remained a top choice for many industry experts like Warren Buffett, as it charges a mere 0.04% expense ratio while investing in the 500 companies within the S&P 500 index.

The Vanguard 500 Index Fund traded at $407.61 at the time of publication.

Related Link: Vanguard Is The New Beast In The Commission-Free Space