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.

learn more… | top users | synonyms

3
votes
1answer
32 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
vote
1answer
135 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
488 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
votes
2answers
188 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
vote
1answer
44 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 ...
0
votes
2answers
211 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
votes
2answers
86 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
votes
1answer
56 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
votes
3answers
181 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
160 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
327 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
votes
0answers
135 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
votes
0answers
266 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 ...
2
votes
1answer
116 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
313 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 ...
9
votes
4answers
419 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
235 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 ...
6
votes
1answer
343 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
161 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
495 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 ...
2
votes
1answer
330 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
204 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 ...
1
vote
2answers
57 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
246 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
113 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
166 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
votes
2answers
51 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
votes
2answers
326 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
484 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 ...
11
votes
1answer
366 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
223 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 ...
2
votes
1answer
51 views

Conversion factor between tracker value and index value?

Where can I find what the conversion factor is between the value of a tracker and the underlying index, other than just computing it myself of course? Is it also explained how these conversion ...
2
votes
1answer
66 views

Long term bond index prices before 2000?

When comparing TLT (Barclays 20 year bond index) with the S&P 500 (e.g. VFINX) it looks too good to be true - almost perfect negative correlation. When the stock market crashes, TLT skyrockets in ...
0
votes
3answers
208 views

Index funds options for European Union citizens

U.S citizens can easily purchase Vanguard etfs to invest in indexed stocks or bonds. Are there any similar options for EU citizens, and which?
3
votes
2answers
704 views

What are short-term fairly liquid investments with attractive yields?

I am looking for fixed-income investments or investment strategy that offer quarterly liquidity and attractive annual effective yields and low risk (i.e. holding the security for a a quarter should ...
4
votes
1answer
87 views

Foreign tax credit carryover w/o having filed previously?

I owned VGTSX for years now but only in year 2011 was it a requirement for me to file taxes. Can I claim foreign tax credit carryovers for past years even though I didn't file taxes during those ...
0
votes
1answer
228 views

Where to find historical quotes for the Dow Jones Global Total Stock Market Index?

Where can I find a year (or more) of historical quotes for the Dow Jones Global Total Stock Market Index? Preferably, with an interval of an hour. However, a daily interval is also acceptable. I ...
1
vote
1answer
113 views

Emerging markets index fund (VDMIX) for an inexperienced investor

I am a novice investor, 28 years old. I am interested in learning more, and also taking some financial risk with a small percentage of my discretionary income. I already have a "solid", medium-risk ...
1
vote
1answer
131 views

US or UK based ETF Index funds for UK investor?

I would like to invest in ETF Index funds. Vanguard funds have cheapest MER, around 0.2% and it was my initial choice, but then I've learned about some tax complications which I still don't ...
3
votes
3answers
154 views

How can a U.K.-based investor easily buy stock index fund shares?

Totally basic question, but I'm clueless :(. How do I buy stocks (I'm based in UK)? I want to buy shares of index funds. Vanguard in the U.K. offers following options: Invest directly - minimum ...
10
votes
5answers
157 views

What to sell when your financial needs change, stocks or bonds?

Say I have a portfolio composed of 80% index funds, and 20% bonds. This portfolio was created under the assumption I would have a relatively large income, and wouldn't need to withdraw any funds for a ...
6
votes
2answers
284 views

Stocks vs. High-yield Bonds: Risk-Reward, Taxes?

Assuming one is looking for a fairly high-risk, high-reward investment, what are the advantages and disadvantages of a diversified stock portfolio (e.g. an S&P 500 index fund) vs. a diversifed ...
7
votes
3answers
649 views

Is there a widely recognized bond index?

S&P 500 is a widely recognized stock index, that many people benchmark performance against, and you can find 'passive management' funds that compete to replicate it at as low a fee as possible. ...
5
votes
2answers
181 views

Analysis of Valuation-Informed Indexing?

My question. I've been reading about Valuation-Informed Indexing (VII). What is your reaction? Would you recommend this strategy? What are its potential strengths/weaknesses? Background. For those ...
5
votes
3answers
91 views

Do you micro-manage index fund purchases to a particular day of the month?

I have setup automatic withdrawal with my brokerage to purchase shares of an S&P500 Index fund the 8th of every month. When I first caught wind of the USA credit downgrade Saturday morning, I ...
4
votes
3answers
2k views

What is the easiest way to back-test index funds and ETFs?

Some authors are irritating such as Stein, more here, they keep throwing people all kind of new "investing" strategies and different ideas after their last ideas stopped working. I feel such authors ...
2
votes
1answer
176 views

Which online services offer logarithmic charts for equities such as index funds and ETFs?

The way Google Finance does the logarithmic representation is more a cry to absurdism, rather than logarithmic. So which services offer the logarithmic valuations, not just a bit axis moving? And it ...
3
votes
3answers
96 views

How is the index fund related to the underlying index?

An index fund tracks the underlying index. So if one invests 100 $ in an index fund tracking S&P 500, and the index grows 8 % in a year, will the 100 $ grow to 108 $? If not, how can the investor ...
2
votes
4answers
387 views

When are equal-weighted index funds / ETFs preferable to market-cap-weighted funds?

Many stock index funds and ETFs are traditionally offered as market-capitalization weighted, because the constituent indexes are composed like that. I understand the capitalization weighting reduces ...