In other words, there is nothing «average» or «mediocre»
about index funds when compared with the alternatives.
I first learned
about index funds when I graduated from college and began researching how to invest my savings for retirement.
Not exact matches
Turner: One of the things that people in the industry often talk
about when it comes to money management is this barbell, where as you said you have low - cost, passive
index tracking
funds and at the other end you have higher fees, higher active share, things like private debt which you mentioned, and it's those in the middle that are charging higher fees for something that looks quite a lot like beta that are really going to struggle.
When the government bans
index funds, you can probably say you heard
about it here first, but I would not hold my breath for that.
Professionals rarely do so well over 50 years that their decisions
about when to get in and out of a stock lead to better performance than they might have achieved by just putting money into an
index fund that buys every stock in a particular category.
These buyers are large investors — central banks, insurance companies, commercial banks and even
index funds — that supposedly do not care
about returns, and will pay any price
when transacting bonds.
Index funds definitely have a large place in a portfolio, but
when you invest on your own, you learn
about, a) companies and how they make money, and b) how the stock market works.
These buyers are large investors — central banks, insurance companies, commercial banks and even
index funds — that supposedly do not care
about returns, and will pay any price
when transacting bonds.
Russ Koesterich at the iShares Blog writes
about when index (and active)
funds make sense.
Travis writes: «
When I read
about index funds and how they out perform â $ œover time.â $ Exactly how much time?
I remember purposely avoiding exposing myself to any information
about the stock market except once each week,
when I would screw up my courage and move more money from cash into stock and bond
index funds.
When I read
about index funds and how they out perform «over time.»
When we averaged all 24 combinations of time frame and peer group, the
index beat
about 60 % of
funds.
I recall having bough some Canadian
Index ETFs in my brokerage account, and the account reports were showing some negative amounts in the trading account, and
when I asked the brokerage company they mentioned something
about «ETFs doing distributions, exactly like a classic mutual
fund».
The default products
when investors think
about indexing the broad market have tended to be
index mutual
funds or exchange - traded
funds that are market - cap weighted.
Active mutual
funds sometimes get a bad rap as a group overall, but
when combined with
index funds they can represent a great way to get diversified exposure to just
about any asset class.
When talking
about index funds that offer no embedded compensation, there's no product alternative available today that has a similar mandate, but with advisor compensation built in.
In Bill Gross's December 2013 Investment Outlook letter, he joined the ranks of Warren Buffett and Peter Lynch in giving a solid endorsement to
indexing while reminiscing
about his younger days
when Jack Bogle introduced the first
index fund available to retail investors:... Read More
But
when we're talking
about investing, you could invest in a value
index fund.
I'm not sure such expertise exists at all — and given that the
fund in question under - performed a vanilla bond
index when managed by the so - called professionals, I'm highly skeptical that if such expertise does exist that a small firm like WS will suddenly possess it in - house... and Eric Kirzner has been there since the beginning, which I should stop ranting
about in the footnote.
So
when you factor in higher management fees and the possibility of lower returns than broader - based
index funds, investors could be giving up
about 1 % in average annual investment returns.
This is the response I hear
when I talk
about index funds.
Why do I spend my days reading and writing
about finance
when all I really need to do is passively add to my
index funds for the next 40 years?
That made one of my eyebrows rise, because I'm under the impression that with every investment; whether you're talking
about an actively managed mutual
fund, an
index fund, an EFT, or anything else;
when you get down to the core of what is being traded, you're dealing in stocks.
I'd love to see some hard statistics on this, for sure, but this is a point that many «indexers» and passive investors like to boast
about when justifying their love for
index funds or
index ETFs.
But fortunately
when I did set up my IRA I found some good advice
about low fee
index funds!
Are you refering to ETFs
when you talk
about index funds?
When I was posting
about the AARP's move into mutual
funds this morning, it got me to thinking
about all the
indexes that are available:
When Mary Long - Schimanke read
about the Couch Potato portfolio in MoneySense, she went to a bank that offers
index funds and asked how she could buy them.
In 2008,
when the global stock market shed
about a third of its value, broad - market bond
index funds delivered over 6 %.
All the things that Value Investors learn
about their investments through research are priced in
when you buy a share in an
index fund.
When you invest in an
Index Fund which gives you exposure to around 80 % to 90 % of the market, you need not to worry
about further diversification within equity as an asset class.
[0:04:34] MM: Nice and that is one of the nice things
about ETF's is they're pretty low cost comparatively speaking even
when you compare them to an
index fund and what makes some a little bit easier than an
index fund is you can trade them like stocks but are there pitfalls to that Stuart?
I meant to toss out a couple thoughts
when Robert blogged
about index funds, reminded by a Wall Street Journal article yesterday pointing out that the S&P 500 has gone nowhere over the last 9 years.