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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3
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1answer
259 views

If you a sell a percentage of your holdings in a fund and specify the average cost basis, can you later select another method when you sell again?

Suppose I bought $5,000 in Vanguard Total International Stock Index Fund over several installments, some before 2012 and some after 2012 (set to reinvest), and now it's worth $10,000. I would like to ...
3
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1answer
165 views

Does the demand for an index ETF make its stock price go up?

There are ETFs that follow an index. Let's say the classic S&P 500. We have two different ETFs following the same index. Let's say Vanguard and Schwab. Let's say Vanguard has much higher demand ...
3
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1answer
291 views

Comparing ETFs following the same index

If I want to choose between two ETFs of different issuers following the same index, what are the factors should I consider? For example I want to decide between SCHD of Schwab and Vanguard High ...
0
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1answer
64 views

Ready made funds?

I see on Interactive Investor, there are options to purchase ‘Ready-made funds’ such as European, US, UK markets. From the website: “Each ready-made selection holds four separate funds, all of which ...
0
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2answers
145 views

How to spread £30000 investment over a long enough period of time?

I have about £30000 that I could start investing now in a tax efficient way (UK ISA, which means essentially zero tax). Since the markets are at an all-time high right now, I am thinking it would ...
4
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2answers
247 views

What percentage of yearly gains on an index mutual fund is lost on tax?

Background about me: I am a foreign national living in the United States. I am in my late 20s, and have begun thinking about long term investing. Having read Get A Financial Life by Beth Kobliner, I ...
4
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0answers
344 views

Investing in index funds in Cyprus?

I'm currently based in Cyprus and wanted to invest euros into the world's stock markets via index funds with low expense ratios. Research thus far into retail investing options here isn't promising. ...
0
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1answer
77 views

How do you find a fund to match a much higher fee fund in one's 401(k)?

I keep hearing about how it's really important to use low fee funds (especially those from Vanguard) in your 401(k) to avoid high fees, especially over the years. I just have no idea how to identify ...
3
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1answer
124 views

How do Authorized Participants prevent index fund tracking error, including tracking error due to an expense ratio?

When I search for explanations of how index-tracking ETFs avoid tracking error, the following explanation is normally given: ETFs allow certain Authorized Participants to trade the underlying assets ...
0
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2answers
126 views

Would it be advisable to start investing in index funds if I'm not sure at which country I am gonna live in after graduation?

I have a plan to start investing in index funds (S&P 500) for a long-term benefits - approximately 10 - 15 years. I would initially invest a bigger amount, but than I would set a fixed monthly ...
0
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1answer
491 views

HYG vs JNK Popularity and Quality

Why is HYG more popular than JNK (respective AUMs are 20B and 13B) even though JNK has a lower expense ratio (0.49% and 0.40%, respectively)? It even seems that JNK's tracking error is lower than HYG'...
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6answers
8k views

At what point do index funds become unreliable?

Passively investing in exchange-traded funds that track some broad index is often recommended for private investors that don't have the time or expertise for active investment. In particular, index ...
64
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10answers
16k views

Are Index Funds really as good as “experts” claim?

I use the quotations because generally the people touting these the most (John Bogle) are also ones selling the index funds. Being biased doesn't mean they're wrong, but it does mean they may not be ...
5
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4answers
496 views

Is there any reason to choose my bank's index fund over Vanguard?

I'm planning on transferring some of the money in my RRSP into an index fund. My bank (CIBC), has a balanced index fund that has 1.2% management expense ratio (https://www.cibc.com/en/personal-banking/...
2
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0answers
307 views

Dividend Leakage for European Vanguard funds

I recently stumbled upon an article warning European investors about "dividend leakage" when investing in Vanguard funds as a European investor due to a dividend tax within Ireland from which the ...
2
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4answers
122 views

Pay index fund expense ratios with cash instead of fund balance

My coworker told me that he pays his index fund expense ratios with cash instead of having the brokerage take it out of the fund balance. So to give an example. Say I have $20,000 in the Fidelity ...
10
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1answer
1k views

My first 401k, starting late-ish - should I stick with target date? [closed]

I just got my first "big boy" job at the tender age of... 34, after a long time in academia and a startup stint that worked out pretty well (startup got acquired by public company) - so now it's the ...
3
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3answers
410 views

P/E (or similar) for index funds?

I'm looking to compare index funds, such as VTIVX vs VGTSX vs VFIAX, etc. I've found these posts that address P/E ratios for the S&P 500: API for retrieving index P/E ratio? Where can I find S&...
1
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1answer
100 views

Difference between ETF value and baseline index value

I have been researching about ETFs, and have been looking a bit into different ones for the MSCI world index. I realized that there sometimes is a substantial difference in the development of the ETF ...
2
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2answers
441 views

Fixed-Indexed Annuity Interest Calculation

I am considering a fixed S&P indexed Annuity that has monthly averaging. The monthly changes have an upper cap but negative changes are not limited. I believe this is typical of this type of ...
0
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1answer
211 views

What is this fund?

I have a 401k account with Fidelity consisting of various funds. For whatever reason Fidelity will display today's +/- % for each ticker symbol, but it does not display overall growth since purchase. ...
0
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2answers
66 views

How to read/understand advertised fund performance figures?

Apologies if this has been asked before, I couldn't find it, or if this is so basic, but I feel it needs asking. I'm sure we've all seen tables like this outlining fund performance. What I'm unclear ...
1
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1answer
70 views

Sector Mutual Funds vs Index Mutual Funds

I have data from Indian Mutual funds from 2006-2016 that indicates that one would be significantly better off investing in a bunch of sector funds over index funds/a bunch of index funds. Is there any ...
2
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1answer
131 views

Index mutual funds

Is it possible to buy all the stocks that make up e.g. the S&P500 and keep only that as an investment portfolio, rather than buying the corresponding index mutual fund (and paying fees in the ...
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1answer
1k views

Passive income using a vanguard index fund?

I am thinking about investing my money into an index fund that generates money over time. From my research, I see that an index fund has about a 7% return rate over a ten year span. I am looking into ...
1
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4answers
286 views

Are all ETFs index-based passive portfolios, or are there other kinds?

While studying ETFs, I have read several times that they track a specific index. So they are basically index funds on steroids. I'm wondering why all ETFs work like that. In other words: what are the ...
4
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2answers
275 views

How has the country exposure of the FTSE All-World High Dividend Yield Index and the FTSE All-World Index changed with time?

I’m interested in how the country exposure of the FTSE All-World High Dividend Yield Index and the FTSE All-World Index have changed over time (if it has much at all). The index factsheets page here ...
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2answers
237 views

Can ETF's change the weighting of the assets they track

I am not very well versed in terms of ETF regulations, but I was wondering if ETF's can reweigh the assets of which they are composed of. Lets say an ETF tracks 5 stocks and when the ETF is launched ...
5
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4answers
864 views

What is the average long-term annualized return on investments?

I've heard the number 7% thrown around a bunch of times, but I am struggling to find reputable data to back it up. All I found was a quote from Warren Buffet that I couldn't find an original source ...
11
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1answer
270 views

Is there a catch on this structured derivative product?

I have a friend who is looking at purchasing this derivative product from JPMorgan. It looks more or less like it's pretty difficult to lose ( ie. not do better than investing in a plain s&p ...
1
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1answer
38 views

Online resource to get expense ratios for mutual funds, index funds & ETFs? [closed]

Every article that deals with purchasing ETFs and index funds talks about expense ratio, but they usually don't show how to get it for an arbitrary fund. So I'm curious, is there an online resource (...
4
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1answer
147 views

What exactly do fund managers of index trackers do?

From this article: The fund manager mirrors the investments within an index using a very similar weighting. For example, a FTSE 100 tracker fund using this method would invest in all 100 ...
0
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1answer
80 views

How do I find an index or mutual fund? [closed]

I am thinking about investing for the first time. How can I search for a fund within a certain industry?
9
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4answers
4k views

How do I invest in an index with a small initial investment (E.U. question)

I just started earning a comfortable surplus for the cost of living of Poland. I have around 700 Euros every month of this surplus and I read that investing in index tracking funds has the higher ...
2
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1answer
1k views

Difference between Bull and Bear 2X ETF?

I am watching a couple of ETFs and their name looks something like this: xxx Daily yyy Bull 2X ETF xxx Daily yyy Bear 2X ETF I have obscured the names to minimize potential bias in the forth coming ...
0
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1answer
713 views

How are average annual returns calculated on an index fund?

I am trying to understand the average annual returns on this index fund: VFTSX according to its data on Vanguard's Price & Performance page. It shows, under "Average annual returns", the ...
2
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3answers
142 views

What is the correct way to calculate the total amount that mutual fund fees will cost me over a certain time period?

The 3 methods below all have different results, and I'm not sure which is correct. Principle = $1M Return: 7% Fee: 1% Time period: 3 years Method 1: ($1000000 * 1.07^3) - ($1000000 * 1.06^3) = $...
3
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3answers
243 views

Portfolio diversification for the long run

I have often heard the phrase "nobody beats the index" which made me wonder why so many people, that invest for the long term (say 20-25 years), diversify their positions so much? Why wouldn't ...
2
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2answers
118 views

Calculate a Fund

I did an investment. I am worried I misunderstood everything. I am not worried about the money I was looking to do something risky, but looks like I might have to learn the hard way about doing more ...
-1
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2answers
131 views

Questions regarding index funds? [closed]

I make roughly $35,000 a year. I have a few direct questions: 1). How much money should I invest into an index fund? (Please do not give a game of semantics on the word 'should'; I simply mean what ...
3
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2answers
655 views

How to chose index funds, mutual funds from a plethora of options (TD Ameritrade)

I recently rolled over an IRA had to select how to divvy up my portfolio and choose securities. I largely stuck with index funds but I have to be honest I wasn't exactly sure what I was doing/choosing....
4
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1answer
224 views

How can Index ETFs gain more than the index they are following?

The ETF I have in mind is an S&P500 index in Canada called "vfv.to. It started in Nov. 2012 and has gone up over 100% in value up until today while the actual S&P has only gone up a little ...
9
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4answers
4k views

Pros and cons of investing in a cheaper vs expensive index funds that track the same index

I would like to invest $1000 in index funds. Both Vanguard and Schwab track the same S&P 500 index. However, Vanguard's S&P ETF has a unit price of $196 and Schwab's S&P mutual fund has a ...
10
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3answers
5k views

Why index funds have different prices?

When index funds track the same index, why then do they have different prices? For example, I see a large difference between Vanguard, Fidelity, and Schwab index funds when they all track, for example,...
5
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1answer
302 views

Basic index fund questions

I'm new here. I'm 30 and very interested in getting started with an index fund, but I need some guidance about some things that I can't seem to find the answers to. Is there a way to roughly ...
4
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2answers
76 views

Why does BlackRock's XIN page show XIN as having only 1 holding?

On BlackRock's XIN page under Key Facts it says the number of holdings as 1. Looking at the top 10 holdings shows EFA as the number 1 holding with a 101% weighting. How is it possible to hold over 100%...
2
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1answer
165 views

What are frontier markets? Is investing in them a good idea?

Recently I had a look through a number of funds that offered investment options to various geographic areas of the world. One such sector I had never heard of before: frontier markets. I know many ...
0
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1answer
875 views

How index creating companies make money? [closed]

I imagine the index creating company would have many experts analyzing the market and sell the index information. Do they sell this information to multiple brokerage companies? If yes, then would ...
2
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1answer
593 views

How do index funds actually work?

I have read that index funds are 'passively managed', but I am not entirely clear on how they actually work. Could someone please enlighten me? Let's assume I would like to invest in the popular ...
3
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1answer
154 views

Which % of the global economy is considered “emerging”? [closed]

I have two funds in my portfolio: developed and emerging. If I wanted to replicate an All World fund, such as Vanguard Total World Stock Index Fund Investor Shares (VTWSX), how should I allocate my ...

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