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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115 views

You know! I don't! Please help. Total Stock Market Funds [closed]

Advice please: I am considering going all in with the following TOTAL STOCK MARKET index funds on the stock portion of my portfolio. Good idea? Here is "my plan": Vanguard Institutional ...
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33 views

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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30 views

Investing in Index Fund as a foreigner

I want to invest in index funds like Vanguard / Fidelity. I'm from Indonesia and from what I've checked Indonesia is not one of the eligible country. It is possible to buy the ETF directly from etoro/...
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2answers
247 views

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 ...
3
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0answers
36 views

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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2answers
69 views

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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3answers
6k views

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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1answer
65 views

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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2answers
78 views

How best to maximise the compounding effect of vanguard investing platform?

I have recently put 2K into the vanguard life strategy 100% fund, which is a pre diversified fund of funds. I also drip feed this account monthly. Now I’m putting another 2K from savings into vanguard ...
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1answer
40 views

Do Total Market funds include all market capitalizations?

Building up my IRA and one of the funds I want to use is FSKAX. When I was looking at its composition, it says its a "Large Blend" and that 99.11% of its portfolio invest in companies with a ...
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2answers
281 views

Which of SPY, FXAIX, VOO, IVV can get the most return over the long run?

I gathered the following data from Yahoo Finance's Historical Data. I didn't start from March 3, 2011 because the Yahoo could not provide data for March 2011 for one of the ETF or Fund, so I used June ...
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127 views

Why invest in an index fund? [duplicate]

I want to start investing in the stock market (I am 26) and I am a bit confused about the advantages of index funds (I am sorry if my questions are very basics, but I just started learning about this)....
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2k views

How does a fund's expense ratio work?

There are several posts here but I cannot wrap my mind around it. Suppose a fund has an expense ratio of 0.055%, as I understand it that means $55 per $1000. Where do the expenses come from? Is every ...
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3answers
275 views

Are distributing ETFs always better than accumulating ones?

I am trying to decide between investing in a distributing ETF or an accumulating ETF and to me the distributing ETF seems clearly to be the better option. Since so many people invest also in ...
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2answers
908 views

Is investing in index futures better than investing in index funds? [duplicate]

Given that futures price is equal to S*e^(rt), it is possible to create a synthetic investment into an index by: entering into an index future for the amount of money which are planned to be invested ...
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4answers
271 views

Can it hypothetically happen that s&p 500 falls to its early 1990s level? Risks of long-term investment [closed]

Many people advise that one should invest money in indexes like the S&P 500 because they always grow in the long term. Is it possible that the S&P 500 could fall to its early 1990s level? ...
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2k views

Why is the expense ratio of an index fund sometimes higher than its equivalent ETF?

Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)'s expense ratio is 0.14% whereas VTI, its equivalent ETF, has an expense ratio of 0.03%. Why is the expense ratio of an index fund ...
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11 views

How to properly compare the performance of a domestic index fund and an international index fund domiciled in the U.S?

For example, when comparing the performance of IVV (which tracks the S&P500), against the performance of the FTSE Canada RIC Capped Index (which tracks mid and large cap Canadian stocks), the S&...
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4answers
222 views

Why contribute monthly to an IRA rather than a brokerage account?

Hypothetically, if I had a long term investment in mind (let's use FNCMX) that I believed would perform well enough annually to allow me to retire at an early age, (call it 40 years old) what ...
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1answer
152 views

Why did this index fund jump almost 20,000% in 2017?

I am looking at Vanguard Pacific ex-Japan Stock Index Fund GBP Dist (0P0000KM1Z.L) on Yahoo Finance. Between 2017-12-24 and 2017-12-31 it jumped from £200 to £20,376. What would have caused such a ...
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8answers
5k views

Is it wise to keep some savings in a cash account to protect against a long term market crash?

My wife and I have half our savings in a low risk diversified account (WealthFront - mostly bonds, some stocks). We have the other half in a high interest cash savings account (0.35% interest). Our ...
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1answer
79 views

Is there a study on profitability of broadly diversified indexed portfolios using dollar-cost averaging?

This topic has been discussed a lot (see e.g. Why isn't everybody rich?, What if You Only Invested at Market Peaks? and Stock market long term risk). There seems to be the conclusion that investing in ...
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1answer
138 views

How can one lose money with VTI? [duplicate]

I am 26 and beginning to learn about investing. I currently have no investments other than some schemes through my employer, which I've already maxed-out. I've read that VTI is a long-term, low-risk ...
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2answers
157 views

Investing in index fund vs. investing to large-cap companies directly [duplicate]

I'm trying to understand the upsides/downsides of investing to an index fund vs. investing directly to stocks of some best-known and well-established large-cap companies. Every single article on ...
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1answer
35 views

Do income/distributing index funds (Vanguard specifically) invest their dividends until they are being paid out

Take those two for instance: https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ex-uk-equity-index-fund-gbp-inc/distributions https://www.vanguardinvestor.co.uk/investments/...
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1answer
103 views

Why are there no index tracker funds for frontier markets?

I am relatively new to investing (using Hargreaves Lansdown) and have built a portfolio of low cost index tracker funds. Given my age (27) I have opted for more risky assets (i.e. my portfolio is ...
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4answers
544 views

Is investing this lump sum in one of these two funds for the next 5 years a wise decision?

I'm going to be retiring from my career soon, and as well as receiving my pension, I have also qualified for a lump sum of just over £200,000, which I will receive around January 2021. I won't ...
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2answers
56 views

Is there a limit to the effectiveness of dollar-cost averaging when dividing up purchasing events? [duplicate]

If buying $12,000 worth of low-cost index funds, let's say that I buy $1000 per month for a year, instead of buying $12,000 all at once. From what I understand, this makes it more likely to improve ...
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2answers
67 views

If a sector is projected to well in the future, does it make sense to invest in an ETF of that sector?

For example solar energy and uranium seems to be projected to grow a lot in the future. Would it make sense to find index funds that track solar energy companies or uranium mining companies and invest ...
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1answer
91 views

Understanding performance of an index fund

I am trying to understand how to interpret the performance of an index fund. I have two views of the same TDB911 fund. The view in TD WebBroker (investing interface) shows that at the beginning of a ...
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2answers
86 views

Index ETF share cost and annual income

I want to figure out how ETF works and index ETF particularly. The aspect I can't find explanation for is the following: Investing into ETF means that I buy ETF stocks which price is based on market ...
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0answers
75 views

What's the implication of index fund dividend yields outperforming the 30-yr treasury?

On a year-on-year basis, dividend yields of index funds are greater than even the 30-year treasury coupons; the spread is even more pronounced on shorter-dated treasuries. For instance, a year's worth ...
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3answers
230 views

In what way do index funds “free-ride on the work done by active investors”?

I was reading Can You Really Game Index Funds?: One of my little stock-market obsessions is that index funds free-ride on the work done by active investors. Someone needs to make decisions that ...
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1answer
67 views

What's the relationship between SPDR S&P 500 ETF listings in different countries?

SPDR S&P 500 ETF Trust is listed on four stock exchanges: NYSE Arca — Symbol: SPY ISIN: US78462F1030 Currency: USD Listing date: 1993-01-22. (source) Singapore Exchange — Symbol: S27 ISIN: ...
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3answers
312 views

Why buy index funds when they are guaranteed to underperform their index?

I am frequently advised against picking individual stocks. The usual argument is that it is difficult for individual investors to beat stock market indexes. I don't understand this defeatist attitude. ...
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2answers
467 views

How can I lever up my index fund returns?

Suppose I am very confident that the 1 year and 5 year returns of an index-tracking ETF will be positive. How can I lever up the returns? For example, when the ETF increases by 5%, how can I achieve ...
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2answers
102 views

ETF of 2000 or more stocks but excludes stocks from the S&P 500?

I believe the S&P 500 is overvalued and small-cap stocks are less overvalued. So I would like to buy market index (like 2000 or 5000 companies) but without the S&P 500 companies. Are there ...
3
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1answer
132 views

Do all major indexes make sense for regular passive investment?

There are articles that say "buying" an index is a very good approach to investment, that beats most of the active funds. But, looking at the value of FTSE 100 for the past 20 years, it has ...
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1answer
52 views

Index Options + Options calculator [closed]

I noticed that even though SPX and SPY track the S&P Index (I realize latter is an ETF and 10x lower), the options prices for a particular chain that I observed today are not exact. They're ...
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4answers
3k views

Why don't index ETFs use leverage to offset their fees and eliminate tracking errors?

If a hypothetical stock index returns 100%, an ETF tracking the index might only return 99% because of ETF fees. This introduces tracking errors. Why don't index ETFs use leverage to offset the fees ...
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1answer
165 views

Why don't accumulation index funds (dividends are reinvested) raise more than the indexes they track?

Let's suppose a fund is tracking an index A, and let's suppose that it does it with 100% of accuracy. Therefore, given a particular period of time, the value of the fund should fall and rise exactly ...
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1answer
207 views

How do I invest in an index fund in EU? (or UK)

I have almost €70,000.- saved and after reading about index funds, I got very curious. I am a Spanish citizen living in the UK, and I assume there are some tax implications that I am completely ...
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1answer
240 views

How can I buy an ETF on Stock Exchange of Hong Kong as an investor in the USA? [closed]

I want to buy shares in 9169.HK Vanguard Total China Index ETF in USD. Their How To Invest page says "You can buy Vanguard ETFs through a brokerage firm during normal trading hours." But ...
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1answer
65 views

ETFs/Index Fund vs Superannuation

newbie here. My understanding says index fund and superannuation products are both funds that invest in stocks, commodities, bonds etc etc For Index funds, an investor gets units for regular ...
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1answer
85 views

I invested in a leveraged (x3) ETF but it does not grow as the underlying index. What went wrong? [duplicate]

I invested in Ayalon Extreme S&P 500 which is leveraged S&P. But its graphic does not follow the graphic of S&P. This is S&P which recently improved historic maximum: And this is the ...
0
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2answers
131 views

How is a new index fund created?

When a new index fund is created, how does it go from a concept to product? Where does the money come from to buy the initial investments that are needed for the fund to have its advertised ...
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2answers
448 views

QQQ vs. VOO in the long term. Which one is better ceteris paribus?

Look at the charts of QQQ and VOO. Obviously QQQ beats VOO. Expense ratio: VOO is 0.03% and QQQ is 0.2% Assuming QQQ will keep beating VOO within the next 30 years, does it make sense to pay 0.2% to ...
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2answers
225 views

Index fund question regarding Vanguard 500 Index Fund Admiral Shares - compound interest

I created an account with TDAmeritrade and started investing in VFIAX(Vanguard 500 Index Fund Admiral Shares) three years ago. At the time, I thought that I am investing in an index fund. However I ...
3
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1answer
84 views

What is the difference between investing in index fund on their website over your existing bank?

I want to start investing in index fund S&P500, specifically VFIAX from Vanguard. I went to their website and started creating an account, and then it occurred to me....maybe my bank, Chase ...
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4answers
273 views

If everyone expects index funds to increase in value in the future, wouldn't future returns be zero? [duplicate]

Suppose everyone expects Apple to increase its earnings by 20% next year. Due to the general expectation, the current stock price will incorporate this information. For example, if subsequently Apple ...

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