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Summary When you invest in an S&P500 index fund that is priced in USD, the only major risk you bear is the risk associated with the equity that comprises the index, since both the equities and the index fund are priced in USD. The fund in your question, however, is priced in EUR. For a fund like this to match the performance of the S&P500, which is ...


9

It depends which 3 years (and which 15). If you had bought the S&P500 index fund in the 2004-2005 time range, your 3 year returns would be small, nothing, or even negative, depending on how exactly you timed it, whereas waiting 15 year (until about now) would have more than doubled (nearly tripled, again depending on exact timing) your investment. See ...


8

"the average return for 3, 5, 10, 15 years is 9%, 8%, 13% and 7.6% respectively" I suspect this really means that the returns using the S&P average over the previous 3, 5, 10, 15 years is … . The answer you are quoting from seems to be simply giving examples of how the market has performed recently in order to give an idea of what is a reasonable ...


7

First approach The formula for standard deviation is fairly simple in both the discrete and continuous cases. It's mostly safe to use the discrete case when working with adjusted closing prices. Once you've calculated the standard deviation for a given time period, the next task (in the simplest case) is to calculate the mean of that same period. This ...


6

I found a good article about how Standards & Poors decides which companies are included in the S&P 500 index. It's from quite a while ago (year 2000), but it's somewhat definitive as it was written by David Blitzer himself. See ETF.com - Here, At The S&P 500 (archive copy). While the article focuses on the criteria for company inclusion in the ...


6

There is no money, and it doesn’t go anywhere. A company’s market cap is just the market’s opinion of what it’s worth. That opinion changes all the time, but no actual money is involved. Money only comes into it when shares (or derivatives) are actually bought and sold.


5

The S&P 500 constituents are rebalanced on a quarterly basis on the third Friday of March, June, September and December on the basis of their weighting and other relevant factors. Intra-quarter changes can also occur, typically because a company becomes ineligible to remain in the index, such as takeover/merger, removal from major exchanges due to ...


4

ETFs are traded as stocks, and you can buy any amount. The minimum amount limitation is for initial purchases from SPDR itself, which is not what you're going to do. The direct purchase from SPDR is for financial institutions that buy ETFs in chunks of 100000 units and then sell them on secondary market, which is where you're buying.


4

I don't know a free way to get access to this info on a daily basis other than perhaps squinting hard at CNBC's screen when they show their S&P heat map. However, that CBOE list looks accurate to me for the beginning of June. There were in fact 502 components on that date. (Interesting trivia: Here's a histogram of the population size of the S&P "...


4

There are numerous companies offering ETFs that conform to EU regulations (UCITS); among the largest active in Germany are iShares, Lyxor, db x-trackers, ComStage, and Vanguard. (Note that some of these are active in the US, too, but their ETFs differ between jurisdictions.) Every single of these companies has at least one ETF tracking the S&P 500 in ...


4

Is there any ETF / Index Fund that tracks the S&P 500 and that holds both stocks and bonds? No, because the S&P 500 does not contain any bonds, so trying to track that index with both stocks and bonds would be extremely difficult. I assume you want the returns of the S&P 500 but not the risk, hence the addition of bonds. Unfortunately, risk ...


4

Is this because it no longer makes sense to track the DJIA? If so, why? Some reasons come to mind: The DJIA consists of only 30 companies, so it is more risky since one company can make large changes in the index. Other indices have hundreds of companies, making them more diversified and less risky. Th DJIA is not market-cap-weighted like the S&P 500. ...


3

Because most of the growth in an index fund is not due to dividends paid by the stocks it holds, but by the increase in the price of the stocks. That increase has no obvious, direct relationship to corporate earnings or to dividends paid. There are plenty of stocks (e.g. Tesla: https://ir.tesla.com/investor-faqs ) that don't pay dividends, but whose share ...


3

The price of U.S. Treasury securities are up in the past month. Gold is up and the Yen is up. The Swiss Franc is not completely at a one month high. There have been ETF inflows into a Treasury fund that has a duration of about 1.9 years. But it appears that an investor could outperform the income of that fund with a three-month bill in their own Treasury ...


3

Is this the more or less direct result of quantitative easing? Yes. (EDIT: and all that 401(k) and IRA money needing somewhere to go.) Is it also a result of low interest rates? That's what QE is. EDIT: https://www.investopedia.com/terms/q/quantitative-easing.asp "Quantitative easing is an unconventional monetary policy in which a central bank ...


3

Vanguard now has a S&P 500 tracking ETF based in Ireland that may meet your needs.


3

The S&P 500 index is maintained by S&P Dow Jones Indices, a division of McGraw Hill Financial. Changes to the index are made periodically, as needed. For Facebook, you'll find it mentioned in this December 11, 2013 press release (PDF). Quote: New York, NY, December 11 , 2013 – S&P Dow Jones Indices will make the following changes to ...


3

I know that my logic is missing something crucial as I always assumed that the longer you leave your money for the closer it approaches to the long term average return. If you can get 9% a year for 3 years, but 7.6% a year for 15 years couldn't you just do the 3 year hold 5 times? The error in this logic? How will you know when to buy and hold for only 3 ...


3

Well it's certainly nothing new. If you look at the chart on that page, longevity is actually higher now that it was in all of the 2000s. They are just predicting that turnover will increase over the next 10 years, though I haven't read the paper in detail to understand why they predict that. I would also posit that turnover is a result of market ...


3

TL;DR: Use raw data to enable apples to apples comparisons The problem with inflation is what definition of inflation you're going to use and whether you (others) think that measurement of inflation is the correct version. It also can "skew" the data since the way inflation is measured changes over the years. If you are using the S&P 500 index return ...


2

S & P's site has a methodology link that contains the following which may be of use: Market Capitalization. Unadjusted market capitalization of US$ 4.6 billion or more for the S&P 500, US$ 1.2 billion to US$ 5.1 billion for the S&P MidCap 400, and US$ 350 million to US$ 1.6 billion for the S&P SmallCap 600. The market cap of a ...


2

Robert Shiller has an on-line page with links to download some historical data that may be what you want here. Center for the Research in Security Prices would be my suggestion for another resource here.


2

According to Morningstar, the monthly returns for SPX were: January February March April May June 2019 7.87 2.97 1.79 3.93 -6.58 6.89 The problem is that you either have bad data from AlphaVantage or your data query from AlphaVantage was incorrect. Monthly return is not calculated from the opening ...


2

The option exchange decides what strike prices to offer. Sometimes the oddball ones come into existence because of a stock split (not applicable here). Other times, it's because someone contacts the exchange and they add the strike price. For example, if you want a new CBOE strike price, use this: http://www.cboe.com/aboutcboe/contact-us They will ...


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 ...


2

The index rebalances quarterly. Different fund providers have different approaches to the rebalance. Some might try to rebalance a little ahead of the index. Others may try to track as closely as possible. The above is for educational purposes only. It is not investment advice or a recommendation to buy or sell securities.


2

My first thought is, "so what?" You want to be in a cap weighted index of roughly the largest 500 companies in the US public markets, you got it. So companies are entering and falling out of the index a bit more frequently, so what? But then you have to question some data. Taking a brief skim of your link you get bullet point 1: The 33-year average ...


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