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1

I understand that the bank essentially buys from me an insurance against a catastrophic market failure, but are they paying me the right price for it? E.g. how does this product compare to a pure uncapped investment in the same index? The easy part of your question to answer is that there is no comparison of this product to a pure uncapped investment in ...


15

The currently accepted answer is incorrect. Vanguard is quoting the 1-year return as of 9/30/2019. This is calculated from the close of 9/28/2018 (the last trading day of September 2018) to the close of 9/30/2019. It is important to get the exact dates right because stock indices can easily rise or fall 1% or more in a day. Stock price fluctuations are ...


9

Google's numbers: 10/01/18 $268.04 09/27/19 $271.26 That's a gain of 1.20% which is far less than the actual return because Google did not account for dividends. During that period you would have received $5.43 in dividends so the Total Return with dividends reinvested would have been 3.34%. You can verify these numbers with a DRIP calculator or with ...


-1

You're comparing two different data points. The Vanguard page you linked lists 4.25% as the 1-year return in a table under the following heading: Average annual returns—updated monthly This means that the average of the returns of 1-year periods during the life of the fund are 4.25%. Google lists the price 1 year ago as 268, and today as 271, ...


2

If you're looking at this through the lens of which index fund to choose then there are a few additional things to consider: 1) Currency exchange rates. Is the index fund sold in your home country's currency? -- In Canada VUN and VTI both track the US stock market, but one is sold in Canadian Dollars and the other in US dollars. What does your bank charge ...


0

Here's a nice simple DRIP Calculator that will allow you to pick the time frame and provide historical results for dividend reinvestment and without it. You can verify your numbers easily:


1

Try using something like the Yahoo Finance tracker to get a graph to show the comparison. Example. This approach has the advantage of letting you adjust the length of the time frame and slide it around to see how these indices have performed at different points. One thing not captured by this approach will be the difference in the currency exchange rates. I ...


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