to be used for any questions related to Index funds. The question should clearly state the Index in question [Nasdaq,LSE] or the fund house in question. If the question is generic with the intention to understand how the funds work, then a specific example should be quoted to get a better answer.

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50 views

Index ETF or Index mutual fund - standard brokerage account

If I plan to hold an asset for 10 years, the asset is offered as a mutual fund and an etf, with the same 0.25% fee, and quarterly dividends of 100.00, from a tax and reinvestment standpoint, which ...
2
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2answers
80 views

Should I move out of my actively managed IRA at Fidelity and put it all in index funds?

I have an IRA at Fidelity. It is where I have rolled old 401k plans into. Currently, I am paying Fidelity to actively manage the account. It is currently invested is many mutual funds, bonds and ...
5
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2answers
517 views

Is Buying American Shares in Canada a Good Idea?

I am looking at buying some American based shares such as SPY (the S&P 500 Index ETF), but I am in Canada. I am wondering if buying something like this will have any consequences (e.g. I have to ...
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1answer
54 views

Passive vs. active investing past performance comparison/data?

I am looking for past statistical data how on average active investment (managed by fund manager) compares to passive investment (index) in 10 or 20 past years. I intend to compare the average gains ...
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1answer
52 views

What's the difference between “Index” and “Accumulation” tracker funds?

Here are two trackers running on the same index: http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000OOAW http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000OOAV ...
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1answer
99 views

What are Some Good Low Cost Index Funds to Invest in for the Long Term?

I am 19 years old (in Canada) and have heard that "Low Cost" index funds are a safe and highly profitable way to invest small amounts of money each month. My aim is to invest every month until I am ...
10
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3answers
1k views

Invest in (say, index funds) vs spending all money on home?

We are looking to buy our first home, and are evaluating how much of our savings to put towards the down payment of the property (or how much home to buy in general). When one has a choice, are there ...
2
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1answer
43 views

How do market indices translate to dollar values?

I saw an article a few weeks ago about the Nikkei closing at a 15-year high. If I understand correctly that might mean something like: Feb. 15, 2000 close: 9000 Feb. 15, 2015 close: 8999 (the ...
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1answer
39 views

How to view performance history if we invested in the past?

I want to look at a scenario to see how the Getty Trust with $1.2 billion in 1982 would have performed had it stayed with just an index fund such as S&P 500. Bonus, if there is a way to take out ...
5
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1answer
88 views

How some mutual funds pay such high dividends

There are some funds where the dividend yields are pretty much off the charts: http://www.nasdaq.com/dividend-stocks/ How do these funds pay these astronomical dividends? What is the catch that is ...
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3answers
403 views

Basic mutual fund investment questions

I am a complete newbie to investment and have already gone through a lot of reading materials. I now have some basic idea about terminology etc. but still have a couple of questions for which I ...
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2answers
55 views

Investments beyond RRSP and TFSA, in non-registered accounts?

I am Canadian, with income just below marginal higher rate. My RRSP contributions were always filled, and the rest went to extra mortgage payments. I just finished paying off the mortgage and will ...
2
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1answer
234 views

If I can invest $100 a month, is it better to choose Vanguard S&P 500 ETF or Betterment

If I can invest $100 a month, is it better to choose Vanguard S&P 500 ETF or Betterment? I can put down a max initial investment of $1000, and may pull out the investments when the market looks ...
5
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5answers
1k views

Can I make my savings keep in check with or beat inflation over a long time period via index funds?

Context: €13000 banked on a 1% savings account. €1700 banked on a payment account. €1450 monthly income (after taxes). ~€400 monthly costs, and probably another €200-400 in incidental expenditures ...
3
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1answer
70 views

What prevents an ETF from performing differently than the sum of its holdings?

A mutual fund by definition performs as well as the sum of its holdings [minus various fees, at least based on my understanding of how mutual funds work]. However, an exchange traded fund (ETF) ...
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1answer
110 views

Why would a passive investor buy anything other than the market portfolio + risk free assets?

It's frequently said that you should buy a "high-risk" portfolio with lots of stocks when you are young, and then move into "low-risk" portfolio with lots of bonds when you are older, essentially ...
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0answers
31 views

Why not to invest in an index fund at the end of the year? [duplicate]

I have seen the advice of not to invest in an index / mutual fund at the end of the year. The reason seems to be that this is when these funds pay out dividends which is taxable. However, Capital ...
2
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1answer
171 views

Straight Index Fund vs IRA + Index Fund

I am about to open a traditional IRA and put my money in an Index Fund (to be decided). Which has the advantage that taxes are deferred until withdrawal. It also seems that I have the advantage of ...
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1answer
83 views

Does VSMAX invest in smaller companies than FSEVX?

Does VSMAX invest in smaller companies than FSEVX? VSMAX seeks to track the performance of a benchmark index that measures the investment return of small-capitalization stocks. The fund employs an ...
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2answers
56 views

Different avenues of tangible returns from index funds and bond funds

I am a beginner investor and I've been out of school at this point having saved enough to seriously look at where I am investing my money. I have decided to start off with a portfolio that is ...
7
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2answers
341 views

How (or is it necessary) to rebalance a 401k with only one index fund?

I put 100% of my 401k into an S&P index fund. Do I need to rebalance that, or is rebalancing only necessary when you have multiple asset allocations such as 80% in stock, and 20% in bonds and ...
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1answer
37 views

Trade options on index or the ETF that tracks the index

What is the criteria one should use before deciding on an underlying to trade options on: 1.Options on SPX (Cash settled, European style) 2.Options on SPY ( Settled in SPY shares, American style) ...
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3answers
72 views

How to evaluate my mutual fund performance?

What is the way to calculate the annual return of my mutual fund investment? At any moment I can see the current market value of my investment, but this number comprises 3 things: market fluctuation, ...
8
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4answers
517 views

Why are some funds only recommended for investors starting out?

I am 23 years old and have been in industry for a couple years and my savings have grown to an amount whereby GIC's are no longer good enough. Since I bank with TD Canada Trust, there seems to be a ...
5
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2answers
386 views

What factors should I consider when evaluating index funds?

Thanks to the people who answered in this question, I've decided to educate myself with index funds and to engage my mortgage preparation funds in them. There are several choices for index funds. ...
2
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2answers
136 views

Pros and cons of opening joint portfolio

From a tax perspective, what are the pros and cons of opening a joint investment account? To be more specific, I have a portfolio made up of Vanguard index funds. My girlfriend would like to start ...
5
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1answer
82 views

How does ISA allowance cumulate over time?

I don't understand how the ISA allowance cumulate (if it does) over time. Suppose I use the entire allowance for 2014. So I will have in the ISA 15k £. What happens in 2015? Suppose no P&L was ...
2
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2answers
155 views

Parking money for a few months or a year

We are planning to get our kitchen remodeled, so we've allowed a big balance to accumulate in our bank account. We're not making very rapid progress on soliciting quotes on the remodel, due to our own ...
0
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1answer
76 views

Are index trackers subject to insolvency risk?

If I invest my money in a bank account, the bank could go bankrupt and I could lose all my money - well, at least I could have in the distant past, before government deposit insurance was invented. ...
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5answers
153 views

Investing in 401k and a Roth IRA

I am a senior in college and I have $3,000 dollars from my summer internship that I want to invest. I was thinking of investing it in a Roth IRA in an index mutual fund. However I am questioning my ...
2
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4answers
304 views

Why invest in IRA while a low-cost index fund is much simpler?

I'm currently investing in a low-cost index fund and wonder what's the point of opening an IRA (either Roth or traditional). The big con of IRA is that you can't withdraw before retirement age ...
5
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4answers
1k views

Senior in College, need advice on my investing plan

I am a rising senior in college and saved up $3,000 dollars from my summer internship. I have done a lot of research online about investment options for my age and I decided that opening a Roth IRA ...
3
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4answers
348 views

Investing in low cost index fund — does the timing matter?

I'm a young person with some money to start investing. I do believe in the superiority of low cost index fund over actively managed fund. But I still freeze up a bit about the timing of when to start ...
3
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1answer
96 views

What is the denominator in the expense ratio?

So I recently looked at Vanguard Total market Index fund, which has an expense ratio of 0.05%. How is this number calculated? The numerator is various operating expenses of the fund, but no source ...
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0answers
46 views

What's Deal with “Pure Style” ETFs/Funds?

I was initially going to find one large-cap growth ETF but then changed my mind to split evenly between a large-cap growth and a large-cap value fund. As I studied returns of various ETFs, my eyes lit ...
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1answer
76 views

How to Compare Two ETFs, Accounting for Expense Ratio?

I'm attempting to compare ETFs but am not understanding how to account for expense ratios. (I'm assuming that the annual returns do not account for expense ratios already -- is this correct?) For ...
4
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4answers
475 views

How much of each stock do index funds hold?

An S&P500 index fund will hold each of the 500 stocks that are in the S&P 500. Does it target holding an equal number of shares of each stock? An equal dollar amount? Does this vary based on ...
3
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1answer
42 views

Index Fund Tracking Error acceptable value

I'm looking at a variety of index funds. I know that tracking error, loosely speaking, is the deviation of a fund's performance from that of the underlying index. I know lower is better, but I can't ...
2
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2answers
63 views

Physical replication ETFs that do not pay out dividends

I am searching for physical replication ETFs that do not pay out dividends at all. I am interest in ETFs that tracks major indices for example , S&P 500, DJIA, REIT, banking, Emerging market, or ...
2
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1answer
66 views

Same fund in ETF and investor share, different expense ratio?

I'm looking at Vanguard 500 Index fund. There are three different options. Admiral share (VFIAX) for people who has $10,000+, and the expense ratio is 0.05%. Investor share (VFINX) with minimal ...
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2answers
202 views

Online broker available in Europe - to buy index funds or ETF with small investments

So i am trying to start investing periodically some small amounts. I am particularly interested in index funds or ETF. I would like to be able buy, track, sell them, and etc online. There are a lot ...
0
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2answers
93 views

Green index funds?

I'm looking to shift my IRA into index funds, but I don't want to invest in fossil fuels or other ecologically damaging companies (for example Coca Cola, which is privatizing water throughout the ...
2
votes
1answer
66 views

In the face of currency exchange rate, pay off loan or not?

We have a student loan in the US, which is at low percentage rate. We live in Canada, and the CAD <-> USD conversion rate is getting worse. We have several stock and fund positions held in USD. ...
1
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3answers
130 views

Avoiding timing traps with long term index investing

Question 1) What are the risks pertaining to timing on long term index investments? 2) How large are these risks? 3) In case I feel not prepared to take these risks, how can I avoid them? ...
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1answer
32 views

Switch between funds - Standard Life pension scheme

I have a pension scheme with Standard Life UK where my employer contributes monthly. Currently money is invested in a BlackRock fund. It is an equity fund. I was wondering how does the switch ...
4
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2answers
226 views

What are the lowest-expense index funds available to an EU citizen?

I see people talking about 0.05% expense ratios, presumably meaning the Vanguard S&P 500 fund. Vanguard advertises an average expense ratio of 0.19%. Sounds great. But the index funds from ...
3
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1answer
53 views

How are mutual/index fund MERs fees charged?

Let's say I spend $1000 = 100 units at $10/unit on a no-commission, no-load index or mutual fund with an MER of 1%. Let's say any distributions are deposited as cash. In one year's time, the fund has ...
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1answer
237 views

How to dollar-cost-average with a large amount of money in a savings account?

A risk-neutral person, intending to not reach the IRA retirement age, earning approx, $30,000 per year, in his late 20's has $100,000 in a savings account and wants to end up with: 80% Stock (of ...
7
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5answers
3k views

What should I do with my $25k to invest as a 20 years old?

I have been fortunate enough to learn the skills necessary for a decent paying job at a fairly young age in computer engineering. I have $25k in my checking account, and I need a sensible means of ...
8
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2answers
235 views

Assessing the value of an ETF

I recently read through Graham's The Intelligent Investor and am looking at what index ETFs or Index Mutual Funds it makes sense for me to invest in. As I was considering this I realized that, at ...