Yet many
excellent index funds are available with expenses less than one - fifth the average.
Her explanations should help clear up some of the confusion surrounding these otherwise
excellent index funds.
I subscribe to the adage that you invest in
an excellent index fund like VFINX and forget about day trading and trying to make short term gains.
Not exact matches
Some of them had crazy investments that were all in the stock in their employer, some of them had absolutely
excellent investments that have been designed by financial professionals in low - cost
index funds and things like that.
There are
excellent resources available about the long - term benefits of investing in equities and specifically, equity
index funds.
Liquidity:
Excellent The Vanguard Total Bond Market
Index Fund has over $ 100 billion in assets and typically trades at a price that is very, very close to its NAV.
Fees:
Excellent The Vanguard Total Bond Market
Index Fund charges 1 / 10th percent in annual expenses.
Something like the iShares Dow Jones Canada Select Dividend
Index Fund (XDV) would be an
excellent choice.
50 - 50 stocks and bonds in
index funds is an
excellent start, with annual rebalancing.
Despite the dissenters, most experts agree:
index funds are an
excellent way to get rich slowly.
Most people in Canada don't associate Fidelity with low cost
funds but they have some
excellent ultra low MER
index funds in the US.
In addition to superior performance,
index funds and ETFs also offer
excellent transparency, pure asset allocation, low fees and greater tax efficiency.
But now that these
funds hold all of the stocks in their
indexes (as opposed to a representative sample, as in years past) they seem to be doing an
excellent job of mirroring their benchmarks.
The keys to being a successful Couch Potato are choosing
excellent ETFs (or
index funds), building a well designed portfolio and only trading once or twice a year when you're rebalancing.
Using the TD e-Series
index funds or ETFs (including those from Vanguard), Canadians can already build
excellent, low - cost portfolios.
The performance numbers in this discussion are based on returns of two
excellent and inexpensive Vanguard
index funds: 500 Index VFINX, +0.03 % representing the S&P 500 and Developed Markets VTMGX, +0.08 % representing
index funds: 500
Index VFINX, +0.03 % representing the S&P 500 and Developed Markets VTMGX, +0.08 % representing
Index VFINX, +0.03 % representing the S&P 500 and Developed Markets VTMGX, +0.08 % representing EAFE.
All three
funds invest in the 500 stocks that make up the S&P 500
index, and all have done an
excellent job of replicating the
index's performance:
These
index funds will not only accomplish broad asset allocation but will also provide
excellent diversification among the assets classes while keeping expenses low.
Too bad more active managers don't follow the lead of
excellent active managers like those who run Sequoia (SEQUX) with only 6 losing years since it's inception in the early 70s, no
index hugging with this
fund.
Valuations do matter, but one can also just employ a strict dollar cost averaging strategy into
index funds and yield
excellent results (historically).
It's also an
excellent long term wealth building strategy that provides broad diversification (depending on the
index the
fund tracks) that is aimed at maximizing your returns over time.
While investors in the U.S. have
excellent index mutual
funds available from Vanguard and other low - cost providers, ETFs are the only cost - effective option for many asset classes for Canadian investors.
I lost ground early before I figured out that I should leave the investing to professionals and invest in low cost, diverse
index funds with
excellent long - term performance results.
TD Bank's e-Series
index mutual
funds are an
excellent option for smaller portfolios like yours.
This makes
index funds excellent building blocks for a well - balanced and streamlined portfolio.
Most 401 (k) and 403 (b) plans don't offer the
excellent, low - cost
index funds available through an IRA account at Vanguard.
Though nearly every bank and brokerage provider will have some form of account and
fund for you to invest in, three
excellent options using low - cost
index mutual
funds or exchange - traded
funds (ETFs) are at Tangerine, TD Direct Investing, and Questrade.
Each
fund has an
excellent track record in matching the returns of the S&P 500
index.
In his
excellent book The Smartest Portfolio You'll Ever Own, Dan Solin gets around this idea by using a combination of real
fund returns and
index data.
So if you are pursuing a dollar - cost - averaging approach using low - cost
index funds (something I think many would benefit from as I wrote in Why Passive Investing Is an
Excellent Default Choice — an Active Investor's View), by all means continue with that approach.
But personally, I remain comfortable with the logic of my decision to choose VOF (over VEIL & VNH) as a slightly more defensive / appropriate
fund for a frontier market — the
index outcome & relative performances could obviously have been very different under an alternative scenario — in the end, I didn't pick / achieve the actual best - performing
fund, but I did match the
index (and +118 % is an
excellent consolation prize!).
MoneyChimp: learn Stock Investing,
Index Funds, Valuation Models, and more is an
excellent source for all kinds of financial information.
Government savings bonds and tax - managed
index funds are
excellent ways to protect yourself from taxes in non-retirement accounts.
This perspective could be easily dismissed by a reader agreeing with the
excellent «New Yorker» article you cited: I'm placing my faith in an «expert»
fund manager with no greater ability to predict the future (and select winning stocks) than anyone else, and I'd be better off
indexing.
Indexed Universal Life or Survivorship Universal Life are
excellent vehicles for estate planning, such as
funding irrevocable life insurance trusts and business planning purposes, such as key man insurance and buy sell agreements.
This plan IS NOT invested into
index funds, but still provides
excellent flexibility through the use of various optional riders.
This has resulted in Campus Advantage's
excellent investment return performance, which since the Company's inception has exceeded both NCREIF Property
Index (NPI) and PREA IPD U.S. Property
Fund Indexes.