Sentences with phrase «to buy the index»

"To buy the index" refers to investing in a financial product called an index fund, which aims to replicate the performance of a specified stock market index, such as the S&P 500. By buying the index, one is essentially purchasing a diversified portfolio that includes all (or a representative sample) of the companies included in that particular index. It is a way of investing in the overall market rather than individual stocks. Full definition
Why pay higher active fees for all this uncertainty and potential disappointment when you could instead just buy an index fund and lock in the market's (fee - adjusted) return?
Why pay higher active fees for all this uncertainty and potential disappointment when you could instead just buy an index fund and lock in the market's (fee - adjusted) return?
I like the risk reward ratio of buying an index like asset at a discount.
You can hold the total market by buying index mutual funds.
You can do a lot to spread your risk by buying an index fund rather than individual stocks.
Others buy indexed universal life insurance because maybe they don't want to pay premiums forever and the cash value buildup can pay the premiums later in life.
Frequently, passive investors buy index funds for tactical rather than strategic reasons, meaning they expect to move in and out of positions quickly.
These exchange - traded funds are used to track indexes as closely as possible, since investors can not actually buy an index outright.
And if no active fund can outperform, then it makes sense to simply buy an index fund based on that particular benchmark.
I'm not saying they should give up on stock picking and buy indexes instead.
Investors often buy index trackers to gain low - cost exposure to «the market».
These exchange traded funds are used to track indexes as closely as possible, since investors can not actually buy an index outright.
Their prices have been driven down so that you can then buy index funds close to zero cost.
She also bought some index funds in her brokerage account totaling $ 1,100 and managed to add $ 500 to her high - yield savings accounts.
Anyone who buys an index fund can instantly obtain near - market returns, and indeed, he or she will beat most professional managers after costs.
If you already have a brokerage account, see what index funds your broker offers, or buy indexed ETFs from within your account.
People buy index funds (and actively managed mutual funds, and sometimes stocks) and just hang on.
This means 80 % of your investments are kept to the plan of proper asset allocation and buying index based funds.
If I insisted on buying some index funds, which ones should I buy?
Personally I'm not interested in individual bonds — I'd rather buy an index fund or ETF that buys the types of bonds I want.
As previously mentioned, this will be accomplished by regularly buying index funds.
Those who want to go the easiest route will typically buy index funds.
You could buy an index call option, or go long of the futures, to satisfy your view.
«You can't generate alpha so buy index funds» makes no sense to me.
To this day, we've had only a handful of clients (< 5) that have bought indexed insurance and that's because that's what they wanted.
Unless you are willing to research the underlying holdings of various REITs you should consider just buying an index fund or ETF that contains REITs.
Buy an index mutual fund or ETF and you've locked in market returns.
For sure, I would buy indexed universal life insurance at age 45.
That's why simply buying the index — which guarantees you the market averages, minus tiny fees — consistently produces better results than most active managers.
Then buy index funds, because their superior performance, in relation to other funds, looks likely to persist for the long term.
Investors buy index funds and index - linked ETFs under the assumption that they will mimic the price appreciation they expect for the underlying commodities.
An exchange traded fund (ETF) tracks indexes as closely as possible, since it's not practical for investors to actually buy an index outright.
If you can not do that then you should buy index ETFs, not company stocks.
Bottom line: if you don't buy an index, you'll want to focus on strategies that have unique holdings and high active share.
These exchange - traded funds are used to track indexes as closely as possible, since it's not practical for investors to actually buy an index outright.
By buying index funds, you ensure that you receive what the market delivers.
Much simpler than picking stocks, that's for sure, hence why most should just buy index funds.
The simulated Best Ideas Newsletter portfolio seeks to find stocks that have both good value and good momentum characteristics and typically includes in the simulated portfolio each idea from a Valuentum Buying Index rating of a 9 or 10 (consider buying) to a rating of a 1 or 2 (consider selling).
Hour 2: Caller questions include, «my RMD is $ 67,000 what should I do with it, and I'm thinking of buying an indexed annuity that says there's no risk, is it too good to be true?»
Not to be overlooked either, the Valuentum Buying Index rating also informs us when we may consider «removing» a position from the newsletter portfolios.
We haven't seen such journalistic conviction about the demise of a market mainstay since Businessweek pronounced the «Death of Equities» in 1979 (the S&P 500 has since risen almost 19-fold).1 Even Warren Buffett, who amassed a fortune through active investing and entrusts Berkshire Hathaway's vaunted equity portfolio to two hedge fund managers, has recently recommended buying an index tracker.
I don't want to try to «time» the market before buying index funds because I know it always goes up eventually, but I'd love to have less debt on the house, too.
Helpful screens that overlay our Valuentum Buying Index ™ with dividend - payers that have safe and growing dividends are provided, and we send email alerts notifying you of any changes we may make to our portfolio.
I will probably continue to add dividend stocks and reinvest the dividends, but I may also start buying index funds while they're low.
An article in yesterday's Globe and Mail gets off to a bad start by suggesting the recent growth in indexing is the result of a marketing campaign: «The financial firms want you to buy the index because they've figured out that they can make a good buck selling index - linked products — funds and especially ETFs.»
As for the lower than expected return, it's no different from buying an index fund, say an S&P 500 fund that never lives up to its name.
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