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.

Filter by
Sorted by
Tagged with
1
vote
0answers
75 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 ...
2
votes
2answers
92 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 ...
1
vote
1answer
156 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% ...
3
votes
2answers
352 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 ...
3
votes
1answer
140 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 ...
3
votes
2answers
180 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 ...
2
votes
2answers
228 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?
0
votes
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
votes
1answer
163 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 ...
3
votes
1answer
125 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 ...
0
votes
1answer
43 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 ...
1
vote
2answers
204 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 ...
2
votes
1answer
88 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 ...
1
vote
1answer
136 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 ...
1
vote
1answer
59 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 ...
3
votes
2answers
338 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 ...
0
votes
0answers
26 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?
4
votes
4answers
390 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. ...
0
votes
1answer
126 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....
0
votes
2answers
280 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 ...
1
vote
1answer
63 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 ...
0
votes
2answers
83 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 ...
1
vote
2answers
184 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 ...
4
votes
3answers
260 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 ...
1
vote
2answers
117 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 ...
17
votes
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?
4
votes
1answer
892 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/...
0
votes
1answer
45 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 ...
0
votes
1answer
74 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 ...
2
votes
2answers
243 views

How do you find an index fund’s tracking error?

Where do you find, or how do you calculate, the tracking error for an index fund? Every guide I've read about index funds mentions tracking error (the difference between the fund's return and the ...
2
votes
3answers
673 views

Keep or sell my index funds?

I am a newbie investor in general and I bought index funds a few months ago and I contribute regularly. I've read that many advise keeping index funds even during depression or bear markets and ...
0
votes
1answer
81 views

How come none of the VIX ETFs track the index exactly? [duplicate]

For example the VXX ETF (https://finance.yahoo.com/quote/VXX) does not track the index exactly (https://finance.yahoo.com/quote/%5EVIX/)
1
vote
0answers
55 views

Why invest in managed mutual funds? [duplicate]

As I can see it, nearly no managed mutual funds beat the index over more than 5/10 years. They don't only have to beat the index, they also must get the fees back to outperform the index fund. So why ...
1
vote
3answers
113 views

Do international index funds provide diversification to domestic USA index fund?

Let's examine two exemplary passive index funds. One is international and one is USA domestic. SCHF: Schwab International Equity ETF SPY: SPDR® S&P 500 ETF Does the international index ...
11
votes
3answers
2k views

How to actually invest in an index fund?

I'd like to invest in an index fund. Let's say I am able to read and understand the various documents that each fund provides, so that I can make an informed choice of what I am doing. Let's say that ...
0
votes
1answer
39 views

iShares UK Equity Index Fund rate of change indicator

I read this post before I started investing in index funds. This answer provides really good insights and analysis which I am thinking of following to increase my earnings. I am currently investing ...
2
votes
2answers
260 views

Global Small-Cap Index Fund has an annual average rate of return of 14%?

I'm new to learning about investing so this may sound stupid. But I'm from the UK and I looked up different index funds on the Vanguard UK website. And since its inception (in Jan 2010), the annual ...
4
votes
2answers
245 views

What happens when a stock drops out of the bottom of an index?

Many indexes around the world are the top X stocks on an exchange. What happens when the bottom stock is overtaken by a stock that isn't in the index? Presumably, all of the funds that track that ...
3
votes
4answers
161 views

Does selling index fund shares for the same amount the account grew by reduce the account's value?

I've been thinking about what retirement looks like, and I'm trying to figure something out. Let's say I have a sum invested ($Y) in an index fund that grew by 60k in 12 months, for a total value of $...
3
votes
2answers
406 views

What causes S&P 500 to grow faster than inflation? [closed]

Facts Average annual rate of USA's inflation is ~2% for the past couple of years Average annual return of S&P 500 is 10% Why? Many people suggest to move your money of your bank, which is maybe ...
8
votes
2answers
635 views

What's the international equivalent of the common advice “just invest in an S&P 500 index fund”?

A common theme among advice for new long-term investors is to ignore investments such as actively managed funds, be wary of financial advisers and the products they sell, and instead to just put most ...
0
votes
0answers
38 views

As an individual investor can I buy FSPTX in the UK?

Not much to add here. I was just looking at different index funds and FSPTX caught my attention with its extraordinary performance. I was just wondering if it is possible to buy it in the UK as an ...
1
vote
2answers
120 views

Does it make sense to invest Limited Company's cash that does nothing otherwise? (UK)

I am a contractor working in the UK and I own a limited company here. I briefly spoke with an accountancy about investing my company's cash although I haven't followed the topic with them. The answer ...
0
votes
1answer
41 views

Chinese technology indices

Is there a Chinese stock index comparable to the NASDAQ 100 or NASDAQ Composite covering Chinese technology stocks with the highest market cap? And are there corresponding ETFs or Mutual Funds?
0
votes
0answers
265 views

Are there speculative ETFs analogous to investment funds?

Are there ETFs that bundle up highly speculative investments with high risk/reward profiles? For instance, they might currently include Zambian, Nigerian, Brazilian and Venezuelan bonds; ...
4
votes
1answer
272 views

Does it make sense to invest in multiple index funds?

The UK based investor here. I haven't found anything under "Multiple index funds" search criteria thus decided to give it a go, if there is already a similar question/answer would love to get a link. ...
2
votes
1answer
561 views

Why did VOO (Vanguard S&P 500 ETF) diverge from the index (and SPY) on June 28, 2018?

The question just about says it all. See the attached chart, in which VOO is darker blue, the index is light blue, and SPY is violet - leading up to June 28th, the 3 moved more or less in lockstep, ...
4
votes
3answers
179 views

What “failure modes” for passive, large index funds?

Is there a way that a passive, large, liquid index fund can completely devalue due to some mechanism (as longs as the stocks it is tracking do not, obviously)? For example, any individual stock can ...
0
votes
3answers
222 views

What stocks do I own from my index funds?

As we know, index funds invest in an "index" of stocks in a particular sector or class. For example, VOO is the Vanguard S&P 500 ETF, and it tracks the S&P 500 stocks and invests in them. ...
1
vote
1answer
170 views

Do the holders of an inverse ETF bear “unlimited” risk

We all know these two things: Inverse ETFs bet against a pool of stocks. This might include short selling the stocks and buying puts. Short selling has a limited upside but an unlimited downside. In ...