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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11
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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
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1answer
41 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
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2answers
293 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
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2answers
710 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
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4answers
171 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 $...
4
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2answers
735 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 ...
10
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2answers
1k 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
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0answers
54 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
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2answers
126 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
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1answer
51 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?
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0answers
316 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
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1answer
484 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. ...
3
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1answer
761 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
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3answers
195 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
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3answers
274 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. ...
2
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1answer
365 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 ...
2
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3answers
411 views

Difference between bond fund and bond index fund

What is the difference between a bond fund and a bond index fund? For example, FIJEX is labeled as a normal bond fund with a gross expense ratio of 0.51% and SWSBX is a bond index fund with a much ...
3
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2answers
188 views

When you buy an ETF, do you give cash to the fund manager?

When you buy a stock from the market, you exchange it with someone. When you buy an ETF, do you give the fund manager money so that he can buy more of the assets that the ETF is supposed to mirror, or ...
0
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4answers
91 views

Why does the price of the basic (Bull 1x) index ETF fluctuate intra-day?

Why does the price of the ETF fluctuate so much during the day? I'm looking at SPDR S&P 500 ETF (NYSEARCA:SPY) candle stick chart for the period March-April. Isn't the ETF manager supposed to ...
0
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1answer
70 views

Risk of basic (Bull 1x) ETF

Is there any risk associated risk to holding the ETF for short term or for an extended period, apart from the risk that the underlying assets go to zero? In other words, is it more risky than owning a ...
1
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1answer
107 views

Why did SPVXSPIT drop 95% in February?

In February 2018, SPVXSPIT (S&P 500 VIX Short Term Futures Inverse Daily Index) seems to have dropped about 95%, but after much googling, there does not seem to be any discussion about this. The ...
2
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1answer
68 views

What is the difference between LIQUIDATED fund and ACQUIRED fund

There are some funds that show up as "liquidated" when googled, which implies that it closed due to a bad performance. Some funds that show up as "acquired by XYZ (ticker of another stock that's being ...
2
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3answers
361 views

Diversification in practice: Choosing a couple of index funds (UK)

I am a newbie investor and just've opened my first trading account although haven't invested in anything yet. I want to invest solely in index funds. In the book "A Random Walk Down Wall Street" at ...
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2answers
160 views

How far should I go in trying to diversify my portfolio?

I have determined the following ratio for the Equity portion of my investments: 30%: Intl Equity 40%: US large cap 30%: US small and mid cap Now, I have some funds invested in a S&P 500 Index ...
3
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2answers
8k views

What happens when you withdraw money from a Vanguard mutual fund?

Say you have $10000 in VTWSX with Vanguard and wish to withdraw $1000 of it. What actually happens when you place this order? Because it's not instantaneous - the shares are sold over the next two ...
2
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1answer
274 views

Is Nasdaq stock an ETF?

Newb here. Is https://robinhood.com/stocks/NDAQ an ETF, aka if I buy this, is it a composite index (like QTEC)? Meaning if I buy NDAQ am I really buying a composite index, or am I just investing in ...
22
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9answers
5k views

Why do banks give small APR loans

I apologize if this has been asked before.... If you can reasonably expect to profit 6% or more from index funds and there are other ways to make a reasonably safe 6% on the stock market.... Why do ...
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1answer
1k views

How is the index fund price calculated

I'm very new in this and I'm a bit lost with index funds. I'm checking this out for example http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/legal-and-general-...
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7answers
2k views

How can so many ETFs tracking the same index coexist?

I understand that different ETFs may cost different amounts of money per share, as you are buying a proportional amount of each company on the index, but why can two ETFs that cost roughly the same ...
5
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3answers
288 views

Buying less shares more frequently [closed]

I'm going to university in a few months and was looking to invest any weekly surplus (£50-75) from my student loan into an index fund. Most funds appreciate in value by about 7% a year on average ...
1
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1answer
85 views

Investing in Hedge Fund on a Rolling Basis

If I invest in any sort of hedge/mutual/index fund when the fund performance is up/down, for ex. +/-20%, and I invest $100k the next day - do I share the 20% loss or gain automatically in a pooled ...
2
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3answers
661 views

How do the people who made the index portfolio make money?

I am reading that if you want to start out investing long-term, start with index funds, as they take care of selecting the stocks and diversifying the portfolio, and all I need to do is invest in the ...
1
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3answers
1k views

Why are some stocks' movements correlated?

I noticed that stocks often go up and down together, for example I see MSFT goes up 2% and then if I look at Alphabet it's also up at around 1.5% and then if one goes down, the other goes down ...
4
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1answer
314 views

How can passive index funds be sustainable at large scale? Won't they affect the indexes they are tracking?

Index funds seem to be gaining popularity these days. So if this trend continues, a sizable amount of investment money might end up in these passive funds. When this happens, won't there be a ...
2
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2answers
172 views

Does exchanging funds from an S&P 500 index fund into a Russell 3000 index fund at a loss constitute a “wash sale” if losses are claimed?

I converted a 'lot' of my Russell 3000 index into an S&P 500 index (first time investing in the SPY index) for a capital gain at the end of 2017 (for purposes of tax gain harvesting). A few days ...
3
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1answer
92 views

Is it time to rearrange portfolio and put more money in bonds? [closed]

57% of my portfolio is invested in stocks. I am considering rebalancing the portfolio and adding more debt funds to it. How to track the market and decide if its time to sell the stocks or buy more? ...
39
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7answers
6k views

Why don’t index-tracking mutual funds corner themselves?

I don't really want to think too much about investments -- just park my surplus money somewhere and be able to come back several years later and see that it has grown. (As this question shows, I'm ...
1
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2answers
137 views

Fine-tuning index fund positions

In general, passive mutual funds (as well as ETFs) provide a good way to diversify without keeping track of and/or a large number of separate securities or paying high additional expenses. However, ...
2
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2answers
178 views

Why Can't I Invest in a Tax-Loss Harvesting ETF/Fund as an Individual Investor?

The advantages of tax-loss harvesting in index replication are becoming more and more clear. The benefits are small but both significant and consistent and would make a fund that has returns larger ...
7
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1answer
3k views

Why does Voya use Vanguard fund names with different prices and no ticker symbols?

I have a Voya 401k account from employer. I've been investing in four funds, three of which (I thought) are "Vanguard" funds. The names are identical to Vanguard funds, but they aren't the same at ...
5
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2answers
325 views

How are Vanguard's ETF's returns higher than the index's growth?

I tried comparing Vanguard's ETF returns to the index the ETF is tracking and it looks like their ETF highly outperformed the index? The S&P/ASX 300 index only grew less than 29% total in 5 years,...
7
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5answers
2k views

Are social/responsible stock funds pointless? [duplicate]

The ESG funds are becoming more and more popular. (ESG = Environmental, Social and Governance). But I am wondering if it makes sense for stock funds? If you buy a stock fund, the only consequence is ...
1
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1answer
127 views

Investment strategy in index funds during the start of the bear market [duplicate]

It's kind of a newbie question but I was preparing to invest in index funds (low-cost index funds) for a while now and I am just thinking what should my strategy look like. As of the day of writing ...
1
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2answers
2k views

If I buy an index fund right now, how can I estimate the actual price I'll get at the time of execution?

I'm somewhat inexperienced at investing, though I do have existing money in index funds. One piece I don't fully understand is the delay between order and execution and how I can estimate when ...
2
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1answer
216 views

Questions about Sampling Strategy ETFs (index funds)

1) If I understand correctly, a Sampling Strategy ETF is an index fund in which: 100% of assets are allocated in <100% of the companies composing the index. <100% of assets are allocated in <...
17
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3answers
28k views

How does dividend work in an index fund?

What does a manager do with the dividends of the companies in the index? Does he reinvest the dividends in the company in which he got the dividends or will just choose whichever company suits him? ...
1
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2answers
297 views

How to invest in Index Funds in India?

Being a Non-residential Indian (NRI), and being a complete "Newbee" in investment, I wish to know, how to invest in Index Fund in India? What steps are needed?
3
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4answers
471 views

What to move investments to before a crash?

Assume that I'm being very pessimistic and that I'm assuming that the stock market rush leading up to the 1928 crash is a predictor of a similar major "correction" coming for the current 2018 market. ...
5
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1answer
484 views

Constituents of S&P 500 Top 50?

Try as I might I can't find the current constituents of the S&P 500 Top 50 index: http://us.spindices.com/indices/equity/sp-500-top-50 That link only lists the top 10 constituents by weighting. ...
1
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1answer
137 views

Buying the CSE 25 Index (Canadian Securities Exchange)

The Canadian Securities Exchange (CSE) has an index http://thecse.com/en/news/canadian-securities-exchange-launches-cse25-index When an exchange creates an Index, what does it really mean? is it ...

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