38
votes
Accepted
What is the difference between these two S&P 500 ETF?
One is priced in US dollars and the other is priced in euro. The euro has appreciated against the US dollar over the past three years, hence the lower return in euro than in dollars.
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35
votes
Accepted
Why there is difference between performance of Vanguard S&P500 (VUSA) and S&P500 index
You're comparing an index that is measured in USD versus an ETF that tracks that index but is paid in GBP. The difference is mostly the difference in exchange rate over time between USD and GBP.
- 126k
32
votes
Accepted
What does "not funded by you" mean in Vanguard's college savings planner?
One of the items on the left hand side is "% of cost you plan to cover" which you've set to 50%. So you're expecting that half the cost will be covered by someone else. That's the "...
- 25.1k
21
votes
Accepted
Roth IRA: Vanguard vs Free Advisor's Mutual Fund
American Funds?
Also look at their annual expenses.
And this is from the AMCAP fund, a "growth fund" in their offering, the expenses over 10 years for a $10,000 investment:
To put this in ...
18
votes
Why is the expense ratio of an index fund sometimes higher than its equivalent ETF?
Because funds of different share classes are there to cater different account sizes.
The actual equivalent of VTI is Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) if account size is &...
- 10.2k
17
votes
What is the difference between these two S&P 500 ETF?
I understand that they are different financial products, exchanged on different markets with different currencies.
You're right, that's the difference. One is VOO, the other is VOO priced in euros ...
- 48.9k
15
votes
Accepted
Understanding the past growth of an ETF
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 ...
- 29.3k
12
votes
Accepted
Why does Voya use Vanguard fund names with different prices and no ticker symbols?
This is an example of a Collective Investment Trust (a longer read from time.com). Voya operates a CIT that buys VFIAX, and you buy into the CIT.
Why would Voya not just give you VFIAX directly? ...
- 5,097
12
votes
Accepted
Mutual fund historic prices, seen @ Google and Yahoo, don't match my activity
VFIAX closed at 421.39 on 12/20/2021 (both Google and Yahoo show this). I suspect that Vanguard filled your order on the 20th, not the 21st. It's possible that the funds were settled the next day - ...
- 126k
11
votes
Accepted
My first 401k, starting late-ish - should I stick with target date?
Vanguard starts to adjust the weightings at 25 years out, so you're certainly right that VTIVX will soon start to be a little less aggressive (in 2020). It's not going to go drastically conservative,...
- 35.7k
11
votes
Accepted
How can you know which index is tracked by a specific index fund?
This kind of information can always be found in the Key Information Document (KID)
The KID states:
The Fund seeks to provide returns consistent with the performance of the
Bloomberg Barclays ...
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10
votes
Accepted
At Vanguard, can I transfer shares from regular investment account to a Roth IRA?
No, IRA contributions can only be made in the form of cash (rollovers and conversions are different). You'd have to sell the investments in your taxable account, incurring capital gains or losses, ...
- 14.9k
10
votes
How can I invest in an index fund but screen out (remove) certain categories of socially irresponsible investments?
It would involve manual effort, but there is just a handful of exclusions, buy the fund you want, plug into a tool like Morningstar Instant X Ray, find out your $10k position includes $567.89 of ...
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10
votes
Accepted
How are Vanguard's ETF's returns higher than the index's growth?
Repost of comment as an answer (as per Chirlu's suggestion).
The index does not take into account the dividends paid by the stocks in the index; the ETF does. So the ETF's return outperforms the ...
- 31.4k
10
votes
Accepted
Vanguard Target Year retirement funds track record
There are a couple of reasons why Dave Ramsey advises you to look at the 10-year performance of mutual funds. When comparing the past performance of different funds, you need to make sure that you are ...
10
votes
Why there is difference between performance of Vanguard S&P500 (VUSA) and S&P500 index
D Stanley is correct that the reason for the difference is the change in exchange rate. But your second chart is not of an index (nor are indexes measured in USD, rather in some "points").
You are ...
- 6,738
10
votes
Accepted
Invest in Vanguard Index Funds (from Germany)
Curious to know why is that?
Generally each region in the world has it's own regulations and specific financial products. The VTSAX is an American product. You also can't buy it in Australia or even ...
- 494
10
votes
Why is the expense ratio of an index fund sometimes higher than its equivalent ETF?
Adding onto base64's excellent answer, an ETF also avoids some of the liquidity costs incurred by open end funds. Since only authorized participants may trade shares directly with a fund, and only in ...
9
votes
What is the difference between these two S&P 500 ETF?
Very roughly, three years ago the exchange rate was 1USD=0.9EUR while now it is 1USD=0.8EUR. Let us use those and imagine ABC corp was trading three years ago at 100USD and has risen to 150USD today. ...
- 693
9
votes
Accepted
Why buy mutual funds when equivalent ETFs exist?
A couple reasons I can think of:
You can place orders for fractional shares of a mutual fund. With an ETF you can't, so you'll probably have uninvested cash.
If you're uncomfortable entering orders ...
- 14.9k
9
votes
Understanding the past growth of an ETF
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 ...
- 75.5k
8
votes
Switching Roth IRA ( from American Funds to Vanguard)
You can have as many IRA accounts as you want (whether Roth or Traditional), so you can have a Roth IRA with American Funds and
another Roth IRA with Vanguard if you like. One disadvantage of
having ...
- 31.4k
8
votes
Accepted
Are the Vanguard Target Retirement Plans designed for when you turn 65, not for when you plan to retire?
No. It should reflect intended retirement year, not age.
From Vanguard's website:
The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire ...
- 9,496
8
votes
Can I circumvent the minimum investment amount on mutual fund if I am gifted a share of that fund?
It is highly unlikely that Vanguard would allow this (either the "gift"/ sale of the initial share or the subsequent investment of less than the minimum). But since this is a company/ fund ...
- 25.1k
7
votes
Accepted
Can you lose money in Vanguard money market settlement fund?
Possible but very unlikely. Money market funds invest in high grade liquid assets and the primary goal is not to lose money. I have not been able to find an example of a Vanguard money market fund ...
- 3,997
7
votes
Accepted
Is there any reason to choose my bank's index fund over Vanguard?
That expense ratio on the bank fund is criminally high. Use the Vanguard one, they have really low expenses.
- 3,997
7
votes
What do mutual funds do with the dividends that the securities that they contain give out?
Almost all US stock mutual funds pay out the dividends received over the year in a lump sum annually, or in some cases, semi-annually or quarterly. Bond mutual funds (and money market funds) usually ...
- 31.4k
6
votes
How can I invest in an index fund but screen out (remove) certain categories of socially irresponsible investments?
I think the answer to your question is no, in theory. By screening out funds, you must actively manage the investments. To then try to ensure you track the index closely enough, you have to do further ...
- 3,980
6
votes
Accepted
Where to find Vanguard Index Funds?
No, some of Vanguard's funds are index funds like their Total Stock Market Index and 500 Index. In contrast, there are funds like Vanguard PRIMECAP and Vanguard Wellington that are actively managed. ...
- 10.1k
6
votes
Accepted
Vanguard Mutual Funds -- Diversification vs Share Class
If I were in your shoes I'd probably take the Vanguard Total Market fund with Admiral shares, then worry about further diversification when there is more in the account.
Many times when you "...
- 48.9k
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