Questions tagged [index-fund]
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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How to construct the safe part of a buy and hold portfolio as resident of a developing country?
For a globally diversified buy and hold portfolio for retirement, it is often advised to invest a percentage (such as 30 %) of the overall portfolio in safe assets to lower the volatility associated ...
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Would investing in an index tracking S&P500 increase my unsystematic risk?
While learning about investing, I came across the term systematic and unsystematic risk. From this website, unsystematic risk is defined as "Unsystematic Risk, or “idiosyncratic risk”, refers to ...
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Why does the range of annual returns of common stock reduce over larger time periods?
I am reading the book, "A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition)", to better understand investing.
Chapter 14., section 2. has the ...
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What are the pros and cons of the classic portfolio by Wealthfront?
I am working on structuring my index investments exactly as provided by Wealthfront. They have the following index funds -
US stocks
Vanguard Total Stock Market ETF (VTI)
45%
Municipal bonds
Vanguard ...
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What is a realistic growth for a world index fund?
I had a meeting with a financial adviser recently.
I told him I was investing in various index funds and I was assuming a growth rate of 7% (minus inflation at 2.6% and fees at 0.4%) so 4% in real ...
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What are some good financial metrics to use while purchasing index funds?
I am a beginner to investing. I was wondering if someone could list the important financial metrics to understand to analyze index funds? I checked Yahoo Finance, and I see some metrics such as YTD ...
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Do S&P 500 funds run by different investment companies have different performance based on the buying / selling speed of the company?
Three major investment companies that I can think of are Vanguard, Schwab, and Fidelity. Each of those have their own version of funds that track the S&P 500
https://investor.vanguard.com/...
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Why are ETFs so bad at tracking Japanese indices?
ETFs that track American indices are generally very succesful at doing so. An example is Spy5, which has followed S&P 500 very closely since its inception in 2012.
However, any ETF I have found ...
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Options to invest after maxing IRA
My company offers a Simple IRA where they match 3% to what I put. I can only put in a max of $16,000 per year.
The good problem that I have now, is that I have way much more money still left even ...
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Is it better, financially, to invest in a property or in ETFs?
I need a bit of a help deciding if it's better to invest in a property or ETFs. I have currently saved up a decent sum of money and I'm looking to invest it wisely. I'm 27, if that matters.
Option 1: ...
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Can one get a liquidity premium as a retail investor?
Is it possible to get a liquidity premium as a retail investor? That is, between the following two options, I would expect there to be a theoretical extra return to doing (2):
Hold an index fund for ...
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Contributing over the 401(k) limit vs investing in an index fund?
I find myself in a lucky position. I have a stable, high-paying job that allows me to achieve nearly all my financial goals, including:
Maxing out the yearly contributions to my 401(k), including ...
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Why waste money buying index funds when you can can buy all the stocks on index on your own?
I've got a question. As we know that index funds puts money on all the stocks of a particular index(say Dow index) - on all 30 stocks present in the Dow index. My question is if I have enough capital ...
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Which of my tax-advantaged accounts should I hold my bond market index funds in?
I have traditional, Roth and SIMPLE IRAs. I'd like to get some total bond market index funds (VBTLX).
In terms of taxes, gains, dividends, etc. is there any difference between holding the fund in a ...
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index rebalancing question
When the S&P 500 adds or removes companies, my intuition is that the companies added have a higher market cap than the companies removed. To what extent does this difference drive the growth of ...
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Is investing in S&P 500 a wise choice if you plan to purchase a house in 10-15 years?
My total compensation is $168k/year ($285k gross) and my goal is to purchase a house in the range of $1M to $2M. I plan to invest my savings in the S&P500 for about 10-15 years, hopefully, to make ...
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Stock prices rise due to index (SP500) inclusion means I should not buy index funds?
When a stock rises (either temporarily or permanently) before its inclusion into an index, that means index funds need to be purchasing the stock at inflated prices.
Doesn't that mean when you ...
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How does mutual funds confiscate the stock dividends?
I'm reading The Little Book of Common Sense Investing by Bogle John, the founder of Vanguard index funds.
In Chapter Six: Dividends Are the Investor’s (Best?) Friend: But Mutual Funds Confiscate Too ...
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Understanding the weight of stocks in S&P 500 indexes
I'm reading about S&P 500 stock list here,
https://www.slickcharts.com/sp500
It looks like each stock has a different weight, e.g MSFT has 7% but V has 1%, why is that? What's the problem of being ...
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Question to do with ETF price changes during the day
In my learnings I was told the nav price of an etf is calculated at the end of the trading day,So the next day trading resumes at that price but then fluctuates due to supply and demand for the etf ...
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Cheap indices in Europe
I have currently started investing and have access to the following markets:
Xetra, BCPP, RMS
I see many good indices like the DAX, but I have no more than 500eur allocated. I saw that there are ETFs ...
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What kind of investment strategies are typically employed when investing at the industry level?
I know economic sectors such as industries represented by SIC codes or GiCS codes are often covered in depth by analysts and some specialize at the industry level rather than stock level. At least ...
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How does the definition of expense ratio and gross return fit into the net return on investment equation?
I am currently reading an investopedia article about expense ratios in funds. This article uses the following numerical example about expense ratios and returns.
A fund has a gross return of 10% and ...
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Can ETFs be broken down into the stocks composing them without paying capital gains tax?
I own some bad index funds. I would like to decompose them into their stocks, and just hold these (maybe doing further alchemy and replacing some of them with other index funds).
Is this possible ...
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How can an index fund experience price variations different than those of the index it tracks?
From 22/03/2022 to 24/03/2023, these are the S&P total market index and the Vanguard U.S. Equity Index Fund:
S&P total market index:
Price on 24/03/2022: $4619.20
Price on 24/03/2023: $3974....
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What's an Index Interest Strategy Charge Rate in a long-term care (LTC) insurance plan?
I'm looking at some Life Insurance Illustration (mirror) for the Long-term care (LTC) insurance plan "Nationwide Indexed UL Protector II 2020" managed by the Nationwide Life and Annuity ...
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What happens if an Index Fund sell off occurs?
For example, if you have a 3-fund portfolio of the Fidelity Total Market Index Fund, Fidelity International Index Fund, and the Fidelity Total Bond Fund, does this strategy represent "meta" ...
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Are the S&P 500 and Dow Jones Industrial Average securities?
As I understand it these Indexes are baskets of assets that are securities. Does that make the Index itself a security? What about an index of commodities?
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Can I buy index funds without margin and own it like a stock?
I am a total newbie so this might be a silly question but I am trying to buy S&P 500 and own it like a stock.
The problem is that my broker (XTB) only has the option to buy it with margin and ...
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Why are there contradicting price diagrams for the same ETF?
I'm an absolute beginner to investing. I'm currently looking into the "iShares Core MSCI World UCITS" ETF tracking the MSCI World Index.
The iShares Website shows how over the past 5 years ...
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What would be the instrument/index with the most historical data available for something similar to TLT aka a bonds fund? [closed]
I would like to have as much historical data as possible regarding a bonds fund performance similar to the iShares 20+ Year Treasury Bond ETF (TLT).
For now I have this source but it goes back to only ...
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Does the increasing popularity of index fund investing mean that it will become unprofitable in the future?
Index fund investing has become increasingly popular over the past 20+ years. More and more people seem to be pouring money into stock index funds in hope that future returns would be as good as they ...
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Why would anyone invest in an index with percent decrement?
I recently learn that there a type of index called "decrement index".
For example, a MSCI world decrement 4% index will constantly underperform the MSCI world index for 4% every year. A spy ...
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Comparing bond index funds: how do indexed bond funds assign the weights to their constituent investment components?
How do passively managed indexed bond funds assign the different weights to their constituent investments?
Is a bond index fund, similarly to stock indexes, trying to hold a slice of all existing ...
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Discrepancy between ETFs performance and benchmark index
I am interested in MSCI World Index and was comparing several ETFs. I can understand that performance of ETF itself can be slightly different but how is possible that there is difference in benchmark ...
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Why does this author claim that buying index funds will decrease index funds returns?
I'm reading The Beginners Investing Book by Matthew Kratter and to quote him directly:
In the old days, very few people practiced indexing. That guaranteed
that it would provide pretty good returns. ...
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How Can A Mutual Fund Have an Expense Ratio of Zero?
A certain brokerage claims to offer several zero expense ratio index mutual funds.
My cynicism says that this is one of:
a loss leader
very temporary; the expense ratio will increase, possibly by a ...
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As a young kid should I spend my time learning value investing or should I just chuck all my money into IVW/VOO
I have a genuine question, I am a noob at stocks. from what I have been reading value investors get higher returns than growth investors but then how come the growth etf IVW gets much higher returns ...
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How is the average return rate of the S&P 500 annual return calculated?
I am trying to understand where the famous average return rate of about 10% of the S&P 500 comes from. In most conversations, the usual starting date is on 1965. Its averaging closing value at ...
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What is the unhedged version of VBU?
I know I should be able to find this, but I don’t see it listed anywhere online. I want to find the Canadian version of Vanguard’s total US Bond index (BND), I see VBU but this is hedged against the ...
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Finding brokers to invest in US index funds that support iraq
I live in iraq and i would like to invest in US index funds.looking at the popular brokers like robinhood and vanguard they state that they don't support investing from my country.Googling for iraqi ...
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Does FoF mutual fund have higher net expense ratio than advertised? [closed]
I am looking at 2 funds. One is ETF which tracks an index. Another is Mutual Fund which invests only in the earlier ETF.
Mirae Asset FANG+ Index ETF FoF MF: https://groww.in/mutual-funds/mirae-asset-...
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Do I understand correctly that while index funds (based on S&P or Dow Jones) generally go up, it might take a decade?
This is probably a simple question, but I don't know much about investing, so here goes:
Some time ago, though I can't find it again now, I read a couple of responses on this site saying that these ...
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How to buy bond index funds only when they are mostly composed by higher interest rate (%) bonds
Vanguard states that their index funds are re-balanced every 4 months or when the management (exceptionally) considers it necessary.
I imagine the FED raising rates several times during 2022 and 2023 ...
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Consequences of liquidity crisis to passive ETFs to a buy-and-hold investor
Various sources raise the risk faced by passive investing ETFs, such as index funds, in the event of a liquidity crisis. One such example is the Investopedia article Why Passive ETFs Face Big Risks in ...
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Are inflation protected bond funds a hedge against rate hikes?
Generally speaking, I'm a buy and hold index fund investor, with a long-term time horizon (20+ years). I currently keep ~12% of my account in intermediate-term bond funds. I don't usually make big ...
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Within a single year, when is the optimal time to contribute to an IRA?
Should I be making my maximum allowable IRA contributions as early as possible in the year (for instance, Jan 1st 2023 for the 2023 contribution), or as late as possible in the year (for instance, ...
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I realized I am too stupid to buy individual stocks, should I use "robo-advisor" consulting?
First the facts:
I opened a Swissquote account in mid 2018 (a broker similar to Robinhood in the US).
My balance today: loss of -1'500 CHF, with a total investment of 26'000 francs.
Especially the ...
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What's the difference between a conventional index mutual fund and a non-conventional index mutual fund?
I read the term "conventional index mutual funds" in several places.
E.g., https://investor.vanguard.com/etf/faqs:
Similar to conventional index mutual funds, most ETFs try to track an ...
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Invest 100k in the Short Term Until It Could be Used to Buy an Investment Real Estate Property
I have a little more than 100k in my savings account. I have been keeping (and accumulating) that money in the savings account hoping to invest it in some kind of an asset (real estate etc.). However, ...
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