New answers tagged index-fund
2
votes
Would investing in an index tracking S&P500 increase my unsystematic risk?
Vanguard's broad market ETF is VTI. Their S&P 500 ETF is VOO.
The correlation between VTI and VOO is 0.99, which is considered to be high.
https://portfolioslab.com/tools/stock-comparison/VTI/...
- 10.5k
1
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Why does the range of annual returns of common stock reduce over larger time periods?
Here is a simple model which produces a similar chart. Each box-and-whisker simulates 100 investments returning anything between 9% and -8% per month, compounded and annualised. The upper & ...
- 9,967
2
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Do S&P 500 funds run by different investment companies have different performance based on the buying / selling speed of the company?
The S&P 500 is a proprietary index. I am a former employee of S&P Global Ratings. (I was not a member of any S&P Index committee. I did securities ratings.) The link to the Wikipedia ...
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1
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Why does the range of annual returns of common stock reduce over larger time periods?
Let's make sure we're comparing apples to apples here:
I believe this implies that over a larger time period the risk attributed to stocks greatly reduces.
It reduces compared to short-term risk. ...
- 140k
2
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Would investing in an index tracking S&P500 increase my unsystematic risk?
In short, yes. Popular S&P500 funds like VOO have over 30% weight in the Information Technology category. To make things worse, in the case of VOO 25% is made up of the top five stocks (which are ...
- 10.1k
1
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Would investing in an index tracking S&P500 increase my unsystematic risk?
I see that tech companies have at least 25% of the entire weight.
While the tech world is doing really great, wouldn't this badly affect
the diversification process?
In addition, I am a software ...
- 144k
2
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Why does the range of annual returns of common stock reduce over larger time periods?
When people say that over the long term investing in a broad index fund will return between 7 and 10% a year (depending on how they count dividends), that is what your chart shows.
If you look at the ...
- 144k
2
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What are the pros and cons of the classic portfolio by Wealthfront?
Even though it's well known, it's worth mentioning that one of main things you want to consider when looking at funds is the 'load' meaning how much the fund charges you to manage it. The good news ...
- 3,994
6
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What are the pros and cons of the classic portfolio by Wealthfront?
So there are a few approaches to this and you have to decide what is right for you. You can hire a financial adviser full time, hire a fee only financial adviser as keshlam said, or use something ...
- 78.6k
12
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Accepted
What are the pros and cons of the classic portfolio by Wealthfront?
That isn't a bad mix. Whether it's the best mix for you depend on your age and "time horizon", and your own risk tolerance and willingness to stay with a strategy.
I often suggest spending a ...
- 49.9k
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