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
5answers
2k views

Pros/cons of borrowing money using a mortgage loan and investing it in a low-fee index fund?

I'm wondering if this investment strategy would work: I get a mortgage loan for $300K at a 3% rate (realistic for current 5-year fixed mortgage rates here in Canada). I invest the proceeds in a ...
0
votes
1answer
71 views

How can I compare the performance of a high dividend funds with other funds and or an index

I've been trying to do some investment due diligence. I'm looking at funds for a family member that needs some dividend income. Some of the high dividend funds that were recommended to me seem to have ...
1
vote
1answer
61 views

Does investing in index funds on a monthly basis involve brokerage fees?

Let's say i want to invest in some index funds, and i know which ones to go for. Let's say i can also make the initial required minimum investment. My question is, will an automatic investment plan ...
2
votes
1answer
218 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
2answers
164 views

Is it a good idea to put everything in the S&P500?

I've maxed out my IRA, have a three-month emergency fund, and have paid off all my debts. I have some remaining money to invest and don't have any short-term goals to spend it on. While my priorities ...
2
votes
1answer
63 views

How is the return rate on index funds calculated?

For example, i was viewing this mid-cap index fund: http://www.bloomberg.com/quote/VMGRX:US It says the annual return is 16.41%. How is that calculated? The index has not risen enough in price over ...
1
vote
5answers
206 views

Investing in 401(k) 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 ...
11
votes
3answers
6k views

Where can I find open source portfolio management software? [closed]

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 ...
1
vote
3answers
302 views

Does longterm investment in index funds still make sense in a reality of massive algotrading?

More and more teams around the world are starting to compete against each other with sophisticated trading algorithms (both high and low frequency trading). For a private investor, if this trend ...
0
votes
0answers
65 views

Lower-cost index funds vs. managed (higher-cost) tax-advantaged IRAs?

If having to choose between a non-retirement lower cost index fund and a managed higher cost IRA (both traditional and Roth), which is less impeded and likely to grow more long-term? Put another way, ...
2
votes
1answer
196 views

Why buy SPY when there is S&P500?

I don't quite understand the purpose of SPY (SPDR S&P 500 ETF Trust) and other S&P500 ETF. If SPY is designed to track the performance of S&P500, why not just buy S&P500(like index ...
3
votes
2answers
280 views

Why isn't index fund investing (Bogleheads school) more commonplace? [duplicate]

I started investing recently, but I've been searching for information for over a year now. My main sources (listed below) favour the strategy of Jack Bogle. i.e. Choosing an index fund with good ...
2
votes
1answer
112 views

How long took a person to get the break even investing since 2000 in MSCI WORLD INDEX?

I read in another forum that a person who invest before the Dot-com bubble (2000) took 15 years to get the break-even. Basically only in 2014 or 2015 he starts to gain money. This seems wrong, but i ...
0
votes
1answer
85 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 ...
6
votes
2answers
630 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 ...
2
votes
2answers
188 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 ...
-1
votes
1answer
80 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 ...
2
votes
1answer
106 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 ...
4
votes
4answers
603 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 ...
1
vote
1answer
151 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
votes
3answers
2k 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
votes
1answer
44 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 ...
4
votes
1answer
4k 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 ...
1
vote
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
votes
1answer
110 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 ...
8
votes
3answers
463 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 ...
8
votes
4answers
546 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 ...
6
votes
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 ...
2
votes
2answers
79 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
votes
1answer
340 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 ...
3
votes
1answer
74 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) ...
0
votes
1answer
130 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 ...
1
vote
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 ...
0
votes
2answers
61 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 ...
2
votes
1answer
309 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 ...
6
votes
1answer
786 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 ...
7
votes
2answers
383 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 ...
1
vote
1answer
100 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 ...
1
vote
1answer
40 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) ...
1
vote
3answers
93 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, ...
5
votes
2answers
467 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. ...
6
votes
1answer
93 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
votes
2answers
157 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 ...
2
votes
2answers
161 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
votes
1answer
84 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. ...
2
votes
4answers
454 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 ...
7
votes
5answers
4k 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 ...
5
votes
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
votes
2answers
722 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 ...
3
votes
1answer
111 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 ...