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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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3answers
170 views

Should I invest in the US or India markets?

If I had $1000 to invest, am I better off investing it in the US, in India, or a mix of the two? I am an Indian citizen working in the US, with the option of investing in US index funds or sending ...
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2answers
149 views

How often do the S&P 500 components change?

And do index funds such as SPY and VOO usually rebalance immediately to reflect the change?
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3answers
271 views

Does investing in the S&P 500 for 3 years yield better yearly returns than investing for 15 years?

I know that my logic is missing something crucial as I always assumed that the longer you leave your money for the closer it approaches to the long term average return. I was just reading this ...
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1answer
40 views

Check benefits lost in currency exchange in an ETF that tracks a foreign index

Given an ETF or index fund that tracks a foreign index but is offered in your country's currency, how can you know how much money is the ETF/Fund management taking when exchanging currencies? For ...
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1answer
43 views

What's the difference between a fund and a security?

I have always used the terms synonymously but I think there is technically a different between the two. For example, given two seemingly similar assets, one is classified a security and the other a ...
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3answers
747 views

Understanding the past growth of an ETF

I'm trying to understand the grow of an ETF (Vanguard VOO) over the past year. I have checked both the Vanguard web page and Google, for the same ETF, and they show massive different growths. In ...
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2answers
175 views

Balanced index fund that tracks S&P 500

I'm looking in Vanguard some balanced (stocks + bonds) index fund / ETF that tracks the S&P 500 but the only thing I've found is: VFINX: https://investor.vanguard.com/mutual-funds/profile/VFINX ...
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2answers
73 views

How to compare different stock indexes?

I'm trying to understand how to measure the growth of a particular stock index over a certain period of time, e.g. 5 years. As far as I understand, for calculating the total growth, you need to do ((...
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3answers
244 views

How many index funds should I invest in?

I'm new to investing and I recently opened a Roth IRA. I know that index funds are a good choice for investing because they have low expense ratios and are diversified. Also, because track a whole ...
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2answers
135 views

S&P 500 vs DJIA

I have seen that Vanguard no longer has index funds that track the DJIA, but the S&P 500. Is this because it no longer makes sense to track the DJIA? If so, why?
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2answers
117 views

25 Year old investing in a Index Fund, questions and where to find info and advice?

I'm a 25 year old with approximately £14k in savings and am completely new to investing. I'm also quite risk averse as I'm doing PhD and will be for the next three years, so can't really afford to ...
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1answer
53 views

Why do some mutual funds or indexes have an average effective maturity that is way larger (2-4 times larger) than the average effective duration?

I would like to know if this difference occurs when the coupon payments are very large and/or if there are other reasons.
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4answers
165 views

Reasons for country-local investment

I noticed something odd: Whenever people talk about investing in stocks or even when they talk about investing in ETFs, they talk about companies in their own country. I'm thinking about buying index ...
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2answers
311 views

If most actively managed funds don't beat the index why not choose the opposites?

This is probably a dumb question and I'm likely missing something obvious but here's my reasoning-- where am I going off the rails? 1) Most actively managed funds do not beat the stock market index ...
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2answers
234 views

Do physical ETFs possess the same problems as CDOs?

Today Michael Burry explained to Bloomberg that ETFs are comparible to subprime CDOs, in that investors are buying securities that aren't backed by any real value: Passive investing has removed ...
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0answers
52 views

American investing in the FTSE 100

Let's say I want to place a bet on the success of an economically independent England. How would an American investor go about buying into the FTSE 100 (or similar) through ETrade, Vanguard, or ...
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4answers
365 views

Index funds and finite supply of stock

As more money pours into index funds, those index funds need to purchase more shares of stock which are part of the index being tracked. Is it possible that an index fund will be unable to track an ...
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1answer
101 views

How do index funds with such different stock/bond distributions have such similar returns?

The Vanguard Target Retirement 2025 Fund (VTTVX) says it has approx. 65% of assets in stock and 35% in bonds and had a YTD return of 12.46% (As of 8/30/19) The Vanguard Target Retirement 2055 Fund (...
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2answers
147 views

Index funds vs 3 funds financial products for long-term investment / retirement

Some company is trying to sell me financial products where there are 3 funds: Apologies that it's in German. Rough translations: Left one: This fund secures the selected guarantee. Center one: This ...
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6answers
12k views

Do index funds really have double-digit percents annual return rates?

For the first time in my life I'm looking into where to put my money and I came across index funds. I find it very suspicious that: whatever index fund I come across, the history never goes back to ...
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1answer
120 views

Why are some managed funds' fees larger than their ETFs fees

In Australia vanguard offers the LifeStrategy® Balanced Fund (a blend of bonds, shares and so on), it has a management fee of 0.9% per year for the first 50,000$, 0.6% for up to 100,000$ and 0.29% ...
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0answers
80 views

How much are index providers accountable to their clients?

Criticism on index providers: The increasing influence of indices means that some critics argue that benchmark providers such as MSCI are too powerful, given that promotions or relegations can ...
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2answers
108 views

What compounding frequency should I choose for this retirement calculator if I invest not in bonds, but in S&P500

I am trying to use a retirement savings/investment calculator using this: https://www.getsmarteraboutmoney.ca/calculators/compound-interest-calculator/ I chose initial investment of $1500, monthly ...
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1answer
160 views

Do index funds sell their stocks when the offer is very good?

A majority owners of a company did some actions that the Financial and Capital Market Commission found sketchy. They ended up with an agreement: owners had to make a good offer (more than +50% ...
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2answers
364 views

Where can I invest into S&P500 without leverage

I was willing to invest into S&P500 index but cannot find any platform without a huge leverage (for example iqOption, plus500 have leverage of 1:20 which makes usually safe investment become ...
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1answer
180 views

Is there a total stock market index fund in India, like the one offered by Vanguard in the US?

I have been reading 'The simple path to wealth' by Jim Collins which advances the indexing philosophy to investment. The issue is that the book is written from the perspective of a US citizen, and ...
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2answers
184 views

Index Backed Short

If I have $200,000 in an index fund that mirrors the S&P 500, then I own the equivalent of 4+ thousand dollars in multiple high capitalization stocks. If I think that one of those stocks I already ...
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2answers
233 views

Are there any mostly-passive funds that become active after stock market crashes?

I am thinking of the following scenario: Expansion, index with low fees After a market crash, lever up and buys equities Does there exist a fund which follows this strategy? Preferably an ETF?
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1answer
74 views

Should I take money from my beneficiary IRA to invest in index funds?

My father passed a few years ago and left me two beneficiary IRAs. I take my minimum distributions from them once a year ($1000-2000 distributions). I'm in my late 20s and want to invest in index ...
2
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1answer
166 views

Why is it hard to find a list of individuals currently on the S&P 500 Index Committee?

All I've managed to find is that David Blitzer is the Chairman, but can't seem to be able to know who are the others, how many, from what industries, how they get elected, etc. Just trying to map out ...
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1answer
134 views

Can index ETF providers decide CEO of all S&P 500 companies?

Just curious, if so many people buy index funds, then the largest direct shareholders of those S&P 500 companies have to be these firms (e.g. BlackRock, Vanguard, State Street, Invesco and Charles ...
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1answer
45 views

How are percentage of investments decided in index fund like VTSAX?

I see that Portfolio composition - has about 20% technology, 19% financials etc - and there is similar composition for companies. This is a general question for index funds - specific example for ...
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2answers
219 views

I have some savings want to invest in index fund but worried about recession in 2019/2020

I have a dilemma. Should I go all in and invest my savings in Vanguard indexes such as VTSAX? Or should I play it safe and wait for a recession? The market recovered from the December 2018 drop so ...
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1answer
93 views

How does ETF price actually track index price?

Imagine S&P goes -5% and so, technically, should VOO. But VOO is a stock itself - subject to supply and demand. The market could just happen to demand many VOOs and push its price up. Why doesn't ...
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1answer
157 views

How do Vanguard LifeStrategy 60 Inc units generate a yield when all the sub-funds are Acc units?

According to Vanguard's portfolio information for Lifestrategy 60 Inc units, the sub-funds of which it's made up are entirely Acc units (with the exception of an inconsequential 0.0% in a distributing ...
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1answer
82 views

Cash Component in Index

In one of the office discussions today, it came up that index, for example, can have cash also. This information was new to me and I couldn't understand why an Index will have cash? Could someone ...
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2answers
345 views

ETF asterisk clause meaning

I'm choosing an ETF, and reading this KII document, I'm not sure what this sentence means. Can anybody expand this language with an example? Is this typical for an ETF? To the extent the Fund ...
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1answer
73 views

Bloomberg Ticker from Index ISIN and Index Key

Is there a way to find the Bloomberg Ticker for an Index given the Index ISIN and Index Key?
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4answers
399 views

Is every active fund bad?

My father (who actually is in banking) recommended me an active fond (https://www.finanzen.net/fonds/deka-globalchampions) in which I invest since some quite some time monthly as long-term investment. ...
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1answer
135 views

Why is it a good idea to invest only in a Roth IRA or a no-load mutual fund invested in an indexed fund of the Dow or S&P 500?

Basing this question on this answer from a popular Quora writer: This is just a matter of simple math. Saving accounts earn less than 1% per year. CDs usually pay less than 2.75% per year....
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2answers
326 views

What is the minimum time an S&P 500 index fund should be given before selling?

I invested $44,449 in an S&P500 index fund over a period of 15 months. Its current market value is $43,596. As someone who has adopted the buy and hold strategy, how long should I wait before ...
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1answer
66 views

MSCI Total Return Net USA Index?

Looking at Xtrackers MSCI USA UCITS ETF fund. Under "Index Description" it says: "The MSCI Total Return Net USA Index which is designed to reflect the performance of the shares of certain companies ...
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2answers
86 views

How exactly does a broad-market ETF work?

So it's obvious that a broad-market ETF attempts to imitate the performance of the whole stock market, but what I still don't understand is how it works and exactly what you are investing in when you ...
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2answers
187 views

Reason for Index Fund and Index Disconnect

My understanding of index funds like QQQ and SPY, is that they are built to mirror the index movements from which they are created. And as is typically the case, the index funds move with the index ...
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3answers
270 views

How can I get my mother to get to minimally understand the advantages of index investing?

She has a very long investing horizon (several decades according to actuarial life table), so index investing would be perfect for her. I'd like her to read "Little Book of Common Sense Investing" and ...
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2answers
164 views

How are ETF prices calculated after the market is closed

For example: Because the NASDAQ: DAX is tracking the index INDEXDB: DAX should its trading value be completely flat when the market the markets are open in the US, but closed in Germany? I'm not ...
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3answers
4k views

Investing in S&P500 Index Fund from India

I am an Indian Citizen residing in India. Can I invest in an S&P500 Index fund while residing in India?
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1answer
917 views

Should returns from my S&P Index fund (SWPPX) match the S&P 500 index?

I have been purchasing ~ $300 worth of SWPPX twice per month since March 2015. My annualized return appears to be 8.22%. I used the annual returns for the S&P500 from here: https://ycharts.com/...
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1answer
48 views

Vanguard CRSP total index versus a value and growth combination of the same index?

I am currently researching Vanguard Mid-Cap and Vanguard Small-Cap indexes. The methodology for inclusion in these indexes is outlined in the CRSP Methodology Guide. According to the guide, inclusion ...
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1answer
84 views

ETF annual expense ratio: how to calculate on a portfolio?

I'm building a portfolio on Excel that includes the following data: price at purchase number of shares commission/fees current price How should I calculate the impact of the Annual Expense Ratio to ...