Tagged Questions

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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8
votes
1answer
592 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
578 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
238 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
52 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 ...
3
votes
1answer
84 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 ...
1
vote
3answers
276 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?
5
votes
2answers
822 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
90 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
264 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
121 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
152 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
170 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 ...
11
votes
5answers
169 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
296 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
789 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
203 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
98 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
187 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
101 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
436 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 ...
6
votes
2answers
116 views

What is the role of a manager in a passively managed index fund?

For example, what do the portfolio managers for the TD Canadian Index Fund (TD Asset Management) actually do? There should not be any need for portfolio managers, because no trading is involved. ...
1
vote
2answers
44 views

How to hedge against specific asset classes at low cost

I only do passive investment on index ETFs etc. I'm quite happy with that, but sometimes I want to hedge against specific asset classes in the mix. For example, let's say I do want to keep buying ...
7
votes
2answers
309 views

Are there index tracking funds that avoid the “buy high - sell low” problem?

An index tracking fund is a fund that buys direct stocks with a view to directly matching a particular index (e.g. the S&P500 or Russell 2000). One way to allocate assets in such a fund is to ...
10
votes
6answers
301 views

Entering the stock market in a poor economy

I'm sitting on a reasonable pile of cash, earning negligible interest in a bank savings account. After determining that I can live without this money for 5-10 years, I decided it would be best put ...
8
votes
2answers
262 views

Invest in low cost small cap index funds when saving towards retirement?

This is a question about "Personal investing and asset allocation". About me: I earn more than I spend I may retire in 15 or 20 years, and I have savings to be invested in something or managed ...
13
votes
5answers
412 views

Is there any benefit to investing in an index fund?

Does an index fund comprise of stocks that mimic the index? So when the index is altered to include new players/exclude old ones, the fund also adjusts? But how can this be, since index funds are not ...
4
votes
4answers
223 views

Why are typical 401(k) plan fund choices so awful?

I don't expect a huge number of funds to choose from in a 401k plan, but all the plans I've ever seen are loaded with funds that have outrageously high management expense ratios (MERs) and they ...
2
votes
1answer
239 views

Is there such a thing as “over diversification”?

I went to an investment advisor today, and asked him his opinion about splitting my foreign (non NIS/Israei) investments between VTI and VEU. He said that he thinks it's "too diversified", and ...
9
votes
2answers
5k views

Where can I find open source portfolio management software?

I am looking for open source code that allows me to do something like Morningstar, but with full export facility, not partial like here, and only for low-cost index funds. I don't want to create a ...
10
votes
1answer
548 views

Understanding differences between S&P500 index-tracking ETFs

I'm trying to understand the difference between S&P 500 trackers. Example: SPY IVV VOO They all have different prices (IVV being $1 more, on average than SPY, and VOO being about 50% ...
10
votes
4answers
636 views

Is an index fund a good choice for a starter investment?

As an individual that is willing to consistently invest ~100-150 dollars monthly into an investment, willing to devote an average of an hour a day to educate himself / monitor investments, what kinds ...
3
votes
1answer
65 views

What's a cost effective way to invest in foreign stocks/funds in Israel?

I would like to diversify, and not have all my investments tied to the NIS, and so I would like to purchase some foreign index funds. I just checked with my bank, and if I understood them correctly, ...
7
votes
6answers
527 views

Are stock index fund likely to keep being a reliable long-term investment option?

As I understand it, stocked-based index fund have been a reliable long term investment option in the last X years. Specifically, during "most" 10-year intervals in the examined history, the yield on ...
7
votes
5answers
452 views

More money towards down payment versus long-term investments

Background: I am married with no kids (but anticipating them at some point) and no debt at all. My spouse and I have an emergency fund, both fully fund our retirement accounts, and are also keenly ...
7
votes
3answers
507 views

Where are Bogleheadian World ETFs or Index funds?

The term bogleheadian is a bit ambiguous term but its simplification means low-cost, diversified, tax-efficient -- solutions. The slant is ETFs or index funds. William Bernstein wrote in some of his ...
18
votes
3answers
550 views

What differentiates index funds and ETFs?

Many companies offer index funds and ETFs. If two funds or ETFs track the same fund, what differentiates the two? Is it common for one index fund to outperform another? How can this happen if the ...
6
votes
7answers
823 views

Are there any Social Responsibility Index funds or ETFs?

Are there any Index Funds or ETFs that focus on Socially Responsible Investing, or will I have to choose my own basket of stocks?
7
votes
7answers
738 views

Is Bogleheadism (index fund investing) dead?

I've always been a believer in index funds, and lately have been reading books such as The Coffee House Investor and The Lazy Person's Guide to Investing. It all makes sense to me except that the ...
8
votes
1answer
164 views

Why are index funds called index funds?

Why are index funds called index funds?