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 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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UK: is it possible to buy Vanguard Growth Index Funds (VGIX)? [closed]
Is it possible to invest in the Vanguard growth index funds if you're based in the UK?
Either directly with Vanguard or via a broker.
I asked Charles Stanley but they don't do it. Thanks
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How to evaluate an index? (other than PE based approach)
I am looking to invest in passive funds. In India there are least 5 popular indexes (Nifty 50, Nifty Next 50, Nifty MidCap 50, Nifty MidCap 100, etc.,). I am trying to find the most undervalued index ...
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Investing in funds via broker, funds in brokers name not mine
As the question states. I am considering investing in funds via a local broker who has quite a good reputation. It was pointed out to me that the funds, eg. BlackRock, would have no record of my name. ...
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Should I enable trading?
While looking for Vanguard 500 Index Fund Admiral Shares (VFIAX) on IBKR I landed at:
And the Enable Trading at the bottom caught my attention. Do we negotiate this in a different way than i.e. VOO ...
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How is "beta" relevant to long-term ETF investors?
A portion of my investment portfolio is in index-tracking ETFs. On the whole, my ETF portfolio is diversified across many countries and industries. I intend to hold these ETFs for 20-40 years. I ...
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How do I choose one fund over another if "past performance does not indicate future performance"?
I want to grow my capital by investing in funds (e.g. exchange-traded funds, mutual funds). However, I always see this disclaimer: "past performance does not indicate future performance" (or ...
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S&P 500 constituent holdings not proportional to market cap?
The S&P 500 is a float-adjusted market cap weighted index. As of July 16 2021, the 2 top holdings are AAPL at 6.27% and MSFT at 5.78%, a ratio of 1.09. However the ratio of their market cap is ...
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Meaning of "excluding components of the S&P 500" in description of Fidelity Extended Market Index Fund
Under the Additional Disclosures heading of the fund overview for the Fidelity Extended Market Index Fund it states:
This description is only intended to provide a brief overview of the mutual fund. ...
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What are the risk types for a large amount of savings in an index fund
I'm curious what are the possible things that can go wrong with storing half of savings in a single index fund. Specifically, I mean things other than the market going down - these are long term ...
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Index or fund that closely tracks residential properties in the UK
Rather than buying property in the UK, are there indices or funds that closely follow house price growth/loss in the UK? Property developers tend to have their own growth patterns.
My problem is I won'...
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Comparison of expected returns from index funds and single shares
I shall start by saying I know little about markets, investing or gambling, but I do know a little bit about probability. This question is prompted by comments to this question, such as "As a ...
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Why wouldn’t I invest in NYSE:UPRO over something like NYSE:IVV? [duplicate]
I recently came across this 3x leveraged etf of the S&P 500 (NYSE:UPRO). I understand that it’s a risky investment, but I still see way more reason to buy it over any other thing that tracks the S&...
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Is this a 'trust fund scam'?
A week ago i received an email from an old lady (i actually submitted an ad on a site to find penpals), it seemed okay at first, she said that she had no children or relatives, and her husband was ...
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Diversification vs VTSAX
What advantage do I gain by holding a mix of mutual funds over just VTSAX?
One oughtn't put all one's eggs in one basket. One mitigates risk by holding multiple distinct asset classes in multiple ...
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How are investments distributed across an index?
Let's say an individual invests a sum of money on an index, say, through Vanguard (e.g. VFIAX or VTSAX):
How does the allocation of this investment get distributed across shares of the companies in ...
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Is buying an index ETF which contains my company insider trading?
I work for company C and in my contract I have information that I can't buy any company stocks, because it will be insider trading.
However, there is an ETF which tracks an index 1:1 to which my ...
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When does the buying happen after inclusion in S&P500?
As I understand it, inclusion of a company in the S&P500 means all ETFs that track the S&P, and some of their derivatives, must buy stock in that company. I would expect this to be a ...
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