10

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 ...


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 ...


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

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

The S&P 500 does not include dividends. You should check the S&P 500 Total Return Index. From Wikipedia: The average annual total return of the index, including dividends, since inception in 1926 has been 9.8% This would give you roughly 5.2% annual real return, looking much better. However, this is in USD. Apparently, one GPB was worth ...


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 ...


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

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

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 ...


2

For inflation, FrankRizzo's answer is good. For dividends, the situation is very different. The standard "price return" measure used for indices like the S&P 500 includes the price drops due to dividends but not the dividends themselves. This is indeed arbitrary and not a good basis for comparing investments with different dividend yields. The only ...


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

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 ...


1

According to this US survey, 11% have never traveled outside the state they were born in. This is fairly close to the poverty rate. https://nypost.com/2018/01/11/a-shocking-number-of-americans-never-leave-home/ I am going to guess that another 10% rarely travel, i.e., they have technically left their state, but have no interest in travel. Financially savvy ...


1

It's extremely likely that fund managers don't take any money from currency exchange. Currency fluctuations, though, are impossible to predict, so you don't quite know how much money you're getting back out. If your investment goes up 10% while the pound sterling loses 10% vs the dollar you're still about even. If your investment goes up 10% while the ...


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