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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1answer
58 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
100 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 ...
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4answers
146 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 ...
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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 ...
2
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4answers
161 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
72 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
26 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 ...
1
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1answer
25 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
383 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
30 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
50 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
43 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
66 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 ...
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2answers
81 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
51 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
vote
3answers
109 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? ...
1
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1answer
25 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
votes
2answers
124 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
votes
1answer
43 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 ...
1
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1answer
177 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
votes
5answers
934 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
204 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 ...
1
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1answer
50 views

Is it possible to use an ETF's/index's price near market close to time my investments in its corresponding mutual fund?

I want to make monthly purchases of an S&P 500 index mutual fund. Most of the time (according to the numbers I looked at), if the index closes down for the day, the mutual fund's NAV will decrease ...
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2answers
380 views

When to start investing in an index fund? Wait for a bear market, use dollar cost-averaging, or another approach?

I think index funds are one of the best investment tools for the defensive investor. Still, when should one start investing money in an index fund? It could result in a loss to get in at the top of a ...
2
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2answers
178 views

Who determines, and how, the composition of the S&P 500 index?

I thought S&P 500 would contain the top 500 U.S. companies by market cap, but apparently that is not the case? e.g., Facebook (FB) was only recently added and has market cap of $100B whereas ...
2
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1answer
60 views

Fees aside, what factors could account for performance differences between U.S. large-cap index ETFs?

I'm regardful of the effects of Expense Ratios, but they range from 0.07% to 1.00% for the stocks therein. What other factors/reasons might explain and account for the prodigious difference in rates ...
7
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3answers
210 views

I am a 23 yr old looking to open a Roth IRA. Should the fund I choose track the S&P?

Not sure what particular funds should be examined, including funds that track the S&P. Is it smart for me at a young age to choose a fund tracking the S&P?
6
votes
1answer
187 views

Mutual fund net expense ratio greater than gross expense ratio

I'm looking at some funds to invest my 401k into. I noticed that a couple appeared to have a higher "Net Operating Expense Ratio" (0.56%) than the "Total Operating Expense Ratio" (0.50%). If it ...
3
votes
2answers
484 views

Is a “total stock market” index fund diverse enough alone?

I'm just getting into investing (currently small amounts, to increase dramatically when I finish off my moderate interest student loans). From what I've read, index funds are the way to go, and I like ...
0
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0answers
174 views

Calculating P/E5 (price to 5 years average earnings) from P/E ratio and 5 year average earnings growth rate

Vanguard only provides the 5 year price to earnings growth rate and single-year P/E ratio for its mutual funds and ETFs. Is it possible to extrapolate the P/E5 (price divided by 5 years of average ...
4
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0answers
321 views

Where can I find P/E and CAPE data for different sectors, countries and market capitalizations

I've been searching for high-quality data on CAPEs (cyclically adjusted price to earnings ratios) for different sectors, countries and market capitalizations. Shiller's Irrational Exuberance website ...
3
votes
1answer
119 views

What are stock indexed funds and how do they lower taxes?

I have read the Wikipedia page but I still don't get the concept. Who maintains the "index of a specific financial market"? For example, one index fund could invest in companies in the S&P 500, ...
7
votes
1answer
353 views

How can one relatively easily show that low expense ratio funds outperform high expense ratio funds?

Almost everybody these days says that passively managed, low expense ratio funds outperform actively managed, high expense ratio funds. I believe it, and have been investing accordingly, but I would ...
10
votes
4answers
470 views

How should one structure a portfolio given the possibility that a Total Stock Market Index might decline and not recover for a long time?

It's a common financial advice to buy an index and hold it forever. Particularly, John Bogle endorsed buying an S&P 500 index and just hold it / buy more of it during bear markets so you get ...
3
votes
2answers
241 views

Why are taxes on actively managed funds higher than those on index funds?

On this page I've found the following statement: Taxes on actively managed funds can be considerably higher than those on index funds. Why is that the case? Since both fund types consist of ...
7
votes
1answer
586 views

How do euro hedged index funds work?

I was trying to find a S&P 500 tracking fund and came across this one. db x-trackers S&P 500 Euro Hedged Index UCITS ETF. Can anyone explain what the Euro hedging means and how it is supposed ...
0
votes
1answer
193 views

Best S&P 500 index tracker available in EU countries?

When I was living in the US I've started investing into the Vanguard 500 Index Fund. However, now I'm back in Europe and are looking for similar index funds that are tracking S&P 500. Does anyone ...
10
votes
1answer
570 views

Index mutual fund “minimum initial investment” inside a Roth IRA?

When a fund says its minimum initial investment amount is $2500, does that mean I need $2500 in my Roth IRA account to trade that fund? If so, would I need $7500 total in my Roth IRA account to trade ...
1
vote
1answer
373 views

401k Option - Lifecycle or S&P Index - what are pros and cons?

When I set up a 401k a few years ago, my options were pretty limited, so I simply went with a lifecycle target retirement date fund (exp ratio of 0.12%). However, I now see I can choose a passively ...
3
votes
1answer
233 views

Investment Portfolio Setup for beginner

I am new to investing but want to start soon, after being able to save some money and doing some research for the past few days. Here are some basic info about myself and my goals: Mid twenties ...
2
votes
2answers
70 views

How does an index rearrange its major holdings

At this link they show the major holdings for the technology index fund (XLK): http://ca.finance.yahoo.com/q/hl?s=XLK Now let us say the major holding AAPL keeps going down. At what point would the ...
2
votes
1answer
284 views

Bid/ask spreads for index funds

Let's assume for simplicity that each company in the S&P 500 has the same market capitalization, and has a share price of 1$. Further, assume the fund allocates 1% for operation costs. So when I ...
0
votes
2answers
130 views

How to calculate the total managing/transaction/etc costs of an index ETF and an index mutual funds?

I am considering to passively invest my savings, and I am deciding between an S&P 500 ETF or S&P 500 mutual fund. Yet, I am not sure what to look for in each option and how to calculate the ...
2
votes
2answers
180 views

Mutual Funds Definition and Role

So mutual funds are funds which have exposure to a variety of assets to reduce the risk. But there are mutual fund companies (like BlackRock) in which people can invest into, and they determine a ...
0
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2answers
53 views

How do I get a list of the top performing funds between two given dates?

Between dates X and Y return a list of the top performing funds, indexes, ETFs, etc for that date range. i.e. if a lump sum had been invested at date X, a list of which funds had the top performance ...
8
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2answers
357 views

Growth of unrealized gains in tax-managed index funds

Tax-managed index funds defer capital-gains distributions by, among other things, offsetting capital gains with losses and deviating from their underlying indexes to avoid having to sell appreciated ...
8
votes
1answer
567 views

First time investor wanting to invest in index funds especially Vanguard

I am a first time investor. I would like to invest small and gradually build up depending on how I fare in the stock market. I've been following the stock market for a couple of years and have read up ...
4
votes
1answer
2k views

Where can I find historic performance data on Barclays Aggregate Canadian Bond Index?

I'm looking at the Vanguard Canadian Aggregate Bond Index ETF (VAB), and it says it replicates the "Barclays Capital Global Aggregate Canadian Float Adjusted Bond Index". Unfortunately VAB is less ...
12
votes
1answer
533 views

Will the popularity of index funds cause a pricing bubble in the stocks that make up an index?

I can't help but notice the popularity of index mutual funds over actively managed funds. I think all the arguments are sound, but I have one worry: Index funds are run by buying the stocks listed ...
6
votes
3answers
236 views

How do I calculate the current risk involved with US Bond Index Funds?

For months I have been trying to wrap my head around the concept of risk involved with the US Bond Index Funds in my portfolio. My initial conclusion is that the risk of long-term damage to my ...