Index Funds vs ETFs vs Mutual Funds - What's the Difference & Which One You Should Choose?
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- เผยแพร่เมื่อ 21 ก.ค. 2020
- In this video I discuss the differences between Index Funds vs ETFs vs Mutual Funds and give you my opinion on what's the best investment is for your portfolio.
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DIFFERENCES: I want to start with Mutual Funds and why I think they are a mistake to purchase in this day/age. Mutual funds have been around the longest and the biggest identifier of a mutual fund is that it is professionally managed - this is also referred to as ACTIVE management. Stocks that are chosen within a Mutual Fund are chosen by a professional stock manager.
The fund fees are often higher because well, you have to pay the mutual fund manager to do the work. Typically mutual funds charge 1-2% per YEAR on the amount that you have invested into the mutual fund, which is called their expense ratio.
Index Funds typically have low fees. Their management style is PASSIVE management. An Index Fund is like a Mutual Fund, but it has no portfolio manager, thus saving you on fees.
An Index Fund just is constructed to MATCH or TRACK the components of a financial market index, such as the S&P 500. By buying the S&P 500 Index Fund, such as VFIAX, for around $300 you get to own a small percentage of the entire index.
Index funds seek to match the risk and return of the market, on the theory that in the long-term, the market will outperform any single investment. And
SO whats an ETF then?
Well a ETF is still a basket of securities, but its main difference is that it trades on the market so you can buy and sell it throughout the day, an Index Fund however, only trades once per day.
If you buy an ETF, since it trades like a stock, you’ll still be paying some commissions on it with a typical online broker.
Since ETFs do trade on the market, you can buy and sell it as you please, which, if you want that flexibility, it’s there. However, I would just recommend buying and holding if you are purchasing an ETF that tracks the market.
The other difference is that with these online brokerages, you may be able to buy into ETFs using fractional shares - which means if you have $50 you can buy a portion of an ETF, instead where some Index Funds might have a minimum - VFIAX for example has an initial minimum of $3000.
So which one is right for you?
Overall, I don’t love Mutual Funds. So with the remaining options - I would say, go with an Index Fund if you can meet the minimums and want a very passive strategy where you don’t want to be involved in your own portfolio, with Index funds you can also automatically reinvest dividends which is super powerful. Buy an ETF if you want to have more control over your own portfolio, and if you want to buy fractionally into them.
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Disclaimer: I am not a financial advisor, any investment commentary are my opinions only. Some of the products and services that appear on this channel are from companies that I have an affiliate relationship with, such as Robinhood, for which I recieve a small percentage made via those links, but it doesn’t cost you anything extra!
I have added a variety of stocks and ETF to my present holdings for the long term. I also have $300k aside to start following inflation-indexed bonds and stocks of companies with solid cash flow. I strongly believe this is a good time to capitalize on the market for long term gains. But actualizing a short term profit would not be a bad idea for me at all.
A collapse of margin debts leads to a decrease in stock prices and it triggers a ripple effect on selling of stocks as investors will try to cover their losses.
Investors should be cautious of their exposure and should be extra careful of their buys, especially during inflation. Such high yield in recession is only possible with the guide of an financial expert who has proven and knowledge on investment strategies.
I totally agree. That is the main reason I employed the service of financial advisor, seeing that their skill set is centered on going long and short at the same time, with the ability to identify and mitigate potential risk on and threat on my assets, employing risk for the asymmetrical upside and laying off risk as a hedge for the inevitable downward turns. I have netted a whooping 2.2million in 2years of working with my advisor, and I am not even doing much.
@@JacobWalker-jx3nf
I have actually been looking into advisors lately to help in optimizing my financial growth and security, the market is becoming tougher by the day. Who is the advisor guiding you?
Jason Herman Pierce is the expert fiduciary i use. You can google him to get more information about him.
I recently sold some of my NVDA stock to secure profits, but I'm retaining a portion for the long term. Nvidia's growth potential remains robust. I'm considering diversifying my 6-figure portfolio, but I'm uncertain about managing risks in my next move.
Everyone needs a Margin of Safety in their portfolios and just remember, It's time in the market versus timing the market.
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
While balancing your portfolio allocations, de-risk your investments, support your core holdings, and take some gains. Even managed portfolios don't always perform as well as I would advise, so it's essential to get the advice of a qualified fiduciary; my spouse and I find that this works for us. Net of dividends, we have had over 80% capital growth.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
‘Dianne Sarah Olson’ is the licensed advisor I use. Just search the name. You’d find her webpage and necessary details to work with to set up an appointment.
Investing in mutual funds offers a structured and diversified approach to building wealth, managed by professional fund managers. While there are costs and some limitations, the benefits of diversification, professional management, and ease of access make mutual funds a popular choice for achieving a variety of financial goals.
ADBE, VWINX and FSPGX are all still good buy, but what do I know I’m not a financial advisor lol
Exactly, I used to doubt the value of a financial advisor until my wife's company assigned her an investment adviser in 2020. Honestly, it’s been the best financial decision I’ve made. It helped tremendously; I went from barely making any profit to having a well-diversified portfolio that has grown significantly, with gains exceeding $850k.
this is incredible! how can I vet your advisor, mind sharing info, if you please?
Finding financial advisors like Sonya lee Mitchell who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
This time last year I considered getting into index funds without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. One year down the road, I truly cannot stress enough how helpful experts in this field are!
To be honest, I've had a hard time grasping the basics. What insights did you gain, and how are you doing it?
It’s not rocket science. I got into index funds, and ETFs, myself but wasn't getting the results I wanted the first couple of months. Got tired of taking losses and decided to seek mentorship from Jonas Herman, a certified fiduciary who helps oversee my investments and has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my investment decisions align with market dynamics for optimal profit.
@@Vikturneer That's your view. In my experience, there is no such thing as a mentor or formula, it is nearly impossible to achieve success with investing. It’s all just gambling.
Sounds like I need help so bad. To me, these get rich quick schemes (stocks) are not worth it and I know that's the same mindset holding me back from taking a step forward.
I don't usually leave comments on socials but I feel compelled to. I just wanted to let you know that you’re doing a great job, Jonas. You have made a real difference in my investing journey.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. hence I will suggest you get yourself a financial-Advisor that can provide you with entry and exit points on best stocks to buy now or put on a watchlist. Apple, Merck, General Dynamics, Cheniere Energy and Marriott International are prime candidates.
Right, I've been in constant touch with a fiinancial-analyst since covid . You know these days it's really easy to buy into trending stock`s, but the task is determining when to buy or sell .
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Svetlana Sarkisian Chowdhury is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
ETFs offer exposure to a wide range of assets, such as stocks, bonds, or commodities, which can help reduce risk. ETFs, like broad market index, sector-specific, and bond ETFs, are favored for long-term investments because of their diversification, reducing risk while offering growth and income potential.
Many promising stocks across industries are worth tracking. While it's not necessary to act on every prediction, enlisting the guidance of a financial advisor is advisable. They can assist you in determining optimal entry and exit points for purchasing and selling shares or ETFs, ensuring well-timed decisions aligned with your investment goals.
I fully agree and place great value on my advisor's role in guiding my daily investments. They excel in both long and short strategies, managing risk for potential gains and protection against market downturns. Their access to exclusive insights and in-depth analysis makes exceeding expectations a regular outcome. In the two-plus years I've worked with my advisor, I've gained over 1.2million dollars.
@@mikegarvey17 Kindly share the details for reaching your advisor. With inflation negatively affecting my funds, I'm in search of a more lucrative investment strategy to optimize their performance.
@@mikegarvey17who is your advisor please, if you don't mind me asking?
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Buying of ETFs is easy, but buying the right one without a time-tested strategy is incredibly hard. Hence which is best to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies... I would greatly appreciate any suggestions.
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?
'Sonya lee Mitchell' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
I did the lump sum buy at first, 125k into SCHD, 75k TSLA, 25k VYM, 25K VUG. Now I'm dca buying roughly 2k every week of whatever is on sale, and looking to add more tech positions to my portfolio. I'm looking to hold long term 15 - 20 years, so hopefully my lump sum buy in doesn't bite me in the ass long term.
In the past weeks, my "unexciting" index funds provided me with over $6,000 in dividends, giving me the option to spend without selling shares. Currently, I've opted to reinvest the dividends to acquire additional index funds for future growth.
Interesting. I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
This video was super informative! Seeing you on TikTok and following other financial/business professional accounts, I am beginning to build my way to “financial freedom”. Thank you for clarifying the Index fund and mutual fund. I almost considered putting my money into a mutual fund, but after learning how high fees could be, I’m just going to opt for an index fund.
Sounds great Justin, yeah good call lol! Thanks for following me on Tik Tok and here :)
I was confused with these funds before but it’s SO much clearer now. Thank you for the straightforward explanation! I love your channel and I will share w my family and friends 😊
awesome ! I am happy that it was easy to understand.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@lennoxmutterick6434 However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@caseycantrell-gh6fg Oh please I’d love that. Thanks!
@@lennoxmutterick6434 Judith Ann peace is her name
Lookup with her name on the webpage.
After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?
Concentrate on two main objectives. First and foremost, keep yourself safe by knowing when to sell stocks to reduce losses and maximize gains. Second, prepare yourself to gain from a market turnaround. I advise you to seek the advice of a representative or financial counselor
@@DavidAntony-gq7id In fact, ever since Coronavirus, I've been in regular communication with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.
@@harrisonjamie794 Please provide the information for your investment advisor here. I really need it now.
@@DavidAntony-gq7id She is KRISTIN GAIL CUNNINGHAM , my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.
@@harrisonjamie794 sincerely thank you I looked her up on the internet and was awestruck by how qualified she was; I contacted her since I need all the help I can get with canning. I've just scheduled a call.
Nice video mate. By the way, if you were adopting a monthly dollar cost averaging plan, would you do it via an index fund or an ETF?
So much complexities. 🤦♂️I think FX-Trading is just the simplest yet you make a very good passive income weekly.
Not a Pro. LoL. I work with "Sandra Yvonne Webster" in all honesty she is an Angel. Do your own research!
Sandra was here in Utah for a seminar. She spoke about Nft bubble Great speaker, full of humor and rhetorics too. Lol!
These bots are getting scary good
Fake ass convo Smfh
Nicely illustrated! Perhaps make a video on the different ways you can buy an index fund (i.e. VFV, ZSP, VSP, SPY, VOO) etc
will def consider, thank you!!
Major indexes booked their worst yearly performance since 2008 thanks to drivers like the recession, war, hiked interest rate and inflation which so far doesn’t seem to be easing off, so I’m left wondering what 2023 has in store for us investors, I’ve been sitting on over $745K equity from a home sale and I’m not sure where to go from here, is it a good time to buy or do I wait?
It’s a good time to buy in on the market, so seize the opportunity to purchase stocks on sales.
stocks are your best bet atm, the housing market are currently a mess
I think stocks will plummet further before actually experiencing steady growth and there are still quite a few stocks that makes for a good buy this season, you just have to do your research, but to be on the safer side and not second guess your market decisions, I’d suggest you reach out to a proper investment adviser for guidance, they’re better equipped at understanding market patterns/movements and adjusting portfolio to match up with these market trends.
my portfolio is down over 15% just last month alone and It’s been that way for the best part of 2022 and I really could use professional help, I’m close to retirement. have you worked with an investment adviser before and could recommend any?
My advisor is ‘’Catherine Morrison Evans’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
Damn. All these years I thought ETFs and Index funds were interchangeable terms. I appreciate this educational video!
Very clear and helpful : thanks! Didn’t realise mutual funds had such high fees!
BTW does each country have different index funds and are they limited to just one country’s stocks? Or are there more global’ index funds that track multiple countries’ stocks or index funds just for emerging markets etc etc ?
Great video, fantastic job explaining the similarities and differences between these investment options, and I found it very informative.
I noticed one crucial aspect missing, and that is tax liabilities associated with these investment vehicles. I believe including information about tax implications would greatly benefit your viewers.
If I remember correctly, one of the key attractions to ETFs, is the tax advantage they offer. Investors in ETFs typically do not have to pay taxes on capital gains until they sell their shares, allowing for tax deferral and potential tax savings. On the other hand, investors in mutual funds may be required to pay taxes annually on capital gains, which can impact their overall returns.
Let me know if I got it wrong.
Great video; clear and concise information. Thank you, Humphrey.
Omg. I’ve been doing all wrong. Please talk about more about stocks for dummies! How to choose stock, etc. Please also talk about investing per ages 30s, 40s, 50s.
thanks for the suggestions, for sure :) I appreciate you watching
Thank you so much! I am so glad that I found your channel. Your presentation style is very simple and easy to understand🙏
This perfectly answers some questions a friend was asking me the other day. Now I can just share this video. Thanks, Humphrey!
Kelly!! Im happy to see you in my comment section :)
Appreciate Video! Excuse me for butting in, I would love your opinion. Have you ever tried - Rozardner Flying Bird Reality (Sure I saw it on Google)? It is an awesome one off product for learning a simple option trading secret to win big minus the headache. Ive heard some awesome things about it and my best friend Jordan finally got great success with it.
Great channel! In my late 20's and STARTING to understand the value and importance of early savings. While I may have missed the boat to some degree, it's still incredibly beneficial to start whenever!
Omg, I finally have a clear understanding of what these funds are and how they work! Thank you so much for simplifying the information. You're awesome!
You're so welcome!
THIS is the info and the channel I've been hunting for! Thanks fam! 🙏🏼
you're welcome brotha!!
Just subscribed. Thanks for educating & being so genuine about it!
I see that the S&P 500 has a bunch of different index funds that track it. How would you pick which fund to invest in?
I like going with the lowest expense ratio (fee) fund.
@@humphrey I’m new to investing, I have 30k in my Questrade TFSA account looking to invest in 100% VEQT. So all I have to do is buy as many shares I can with my 30k and that’s it? Besides logging in to buy more shares every month for 30+ years, I don’t need to do anything else on my Questrade account? Can I set it and forget it?
Index Funds and buying individual stocks for that risk/reward factor is the way to go. I prefer that passive approach for sure while also loving the ability to get myself some shares in Apple, etc 🤣. You cleared up a ton for me man! Subbed
Omg, I'm about to invest to mutual funds. I'm so glad that I watch this video. Thanks man! 💯🔥
You are welcome!
Nothing wrong with mutual funds. A portfolio of index funds and mutual funds will keep the costs low and give you the benefit of both. There are some mutual funds, for example some of the ones managed by Baillie Gifford that are not much more expensive than index funds and provide a much greater return. I dont agree that all mutual funds are bad maybe you just havent done the research into the best performing ones. Here in the UK its not just picking the right funds but also choosing the necessary accounts to hold them in. For example whether that be in a pension, ISA, Investment Account etc…
This video was awesome, glad I subscribed because your strategy for teaching is simple and more than helpful!!!
It would be great if you can explain the different tax implications for ETF and Index fund, especially relating to capital gain distribution
Was searching for a short and easy explanation, the thumbnail immediately caught my attention. Great job
Boom! Thank you.
Very well explained! Very clear, easier to understand! Great video! Thank you !
Hi been following your video's, very good video's but i have a question, can i treat ETF the same as Index funds concept, meaning set it and forget it? And will the ETF have the same benefit as Index to which the dividends be reinvested?
I’ve been looking to this kinda straightforward explanation , thanks man!
This is a great video. Very clear. Now I know the difference between these three and which one is the best for me! :)
Which investment, excluding mutual fund better success rate for income and which one has a better chance for growth?
Hey Humphrey! So can I buy into an EFT and trade into (not sure if that's the right vocabulary) an index fund?
LOVE THE VIDEOS! Thanks for making them 10mins and not 20mins like others lol
Thank you, the simplest explanation ever! I really enjoyed your video in fact I have subscribed as well.
Any other suggestions other than Robinhood? What do you think of WeBull? Yes I’d love to hear your thoughts on to Ark investments /ETFs. Thank you!
Great video. I'm a late arrival to investing for retirement. I've only had a Roth IRA for about a year now and have about 3k in it. The majority of my assets are mutual funds. Luckily all my expense ratio's are pretty small ranging from 0.04 to 0.65. With that being said, I think I'm gonna pivot to ETF's just to be safe. If things go according to plan, I still have between 20 - 25 years left before retirement so hopefully I can build up a nice nest egg. Anyways, thanks for all the valuable tips!
Chris Glazener, 20 years x 6000 dollars a year is 120,000 not counting the interest and your funds increasing over the years, consider putting at least 10% of what you earn into a 401 at work or similar fund that brokerage can set up for you. You need at least $300,000 to retire, $500,000 is a lot better. Don't mean to scare you, but that is your goal. Last year I was treading stocks, and made $6000 into my Roth without putting any money into the account. Keep doing what you are doing and you should do well. Oh something else multiply 3000 dollars x 6% you get $180 a year, you could get 8% some years or more, so compounding works well. Oh a $100,000 x 6% the lowest you should expect is $6000 and you can keep adding the $6000 a year on top of that, and of course no taxes. That's the beauty of the Roth, you can only pull out what you deposited with nor penalty, before 59 1/2.
@@brucerowe2895great advise. To summarize: the first $7000 goes to max your ROTH, next max your 401k, and finally set aside some funds for your brokerage account.
Thank you for making videos about these types of Funds! I wish they did teach this in school. At least high school :(
You're so welcome! Yeah lol they don't, but that's why I'm here!
so.. if buying a share of the second type of fund (the index fund) .. what are you actually buying? if it simply 'aims to track an index' .. it seems like you're not really buying stocks. is this correct? this is the one that is confusing me. i understand mutual funds. and i pretty much understand etf
etf is very similar to index fund, just index fund trades once/twice a day and usually has higher minimums
I have a bunch of "funds" across my pension and ISA. I am after a website or an app which allows me to plot them on a line chart so I can see their performance over time. They all have an ISIN Code. I want it to remember the funds that I am tracking. Any suggestions?
Awesome video, you mentioned minimum requirements for an Index Fund, what are those requirements?
In a taxable account: mutual funds that have capital gains would result in taxes owed. ETFs don't generate capital gains until sold, so no taxes owed until the year ETF is sold. Did I get this correct?
I really don't know how to thank you man... you've cleared all my doubts.
You’re welcome bro
Been trying to understand these concepts for sometime. Especially the aspect of fees from a mutual fund. This is the first time it's made sense. Thanks!!!
Thank you 😊. You are super awesome and brilliant!!!!
Thanks for the clarity. It all gets a little crazy after a while!
Is your return on investment higher when comparing an index fund versus an exchange-traded fund due to the net asset value price being lower than the market price?
Im so glad ive been watching your videos. i had an interview with a new bank just now trying to sell me on mutual funds, BUT I KNEW THAT WAS RUBISH! Putting it all in Index Funds going forward!!!
Thank you for the informative video. When is a good time to buy an index fund?
Thank you, that was informative and concise.
This is very educational, Humphrey. You are doing a great service.
A small criticism about accuracy. Index funds are not a separate category unto themselves. There are mutual funds that are index funds and there are ETFs that are index funds.
Textbook definition:
An index fund is an investment fund - either a mutual fund or an exchange-traded fund (ETF) - that is based on a preset basket of stocks, or index.
Thank you for adding this comment. I was wondering why he spoke as if it was a separate category…
LOVED your video, thanks a lot!! Finally those things make sense now.
This video made it clear for me for good. Thank you
Question: Is it true that holding an ETF will be more tax-efficient than holding an index fund? I am confused. I know that an index fund manager has to rebalance his holdings (and therefore incur tax consequences). Doesn't an ETF manager need to do the same thing?
Not investing related but omg @ the reputation Taylor box in the back!
Informative but mutual funds don't necessarily suck, plenty of overperforming ones with .7 -.8 % expense ratios that have outperformed the market.
Thank you for all the insight!! Any idea why Dave Ramsey recommends mutual funds over index funds??
Lol. Kickbacks?
Great explanation! Super simple and clear. Just what am looking for. The difference between index fund and etf. Now I know. Thanks to this video!
you crleary explain the difference between theses portfolio, I was confused. Thank you
Thank you. I appreciate your videos and the way you lay it all out for us laymen. It's always good content and information.
Great video, but I was even more impressed with the completely unrelated bonus content :D I don't think I've seen other people do it that way
Hahahaha you are welcome :)
Thanks, any thoughts about Fundrise?
Great video
Love your explanation and clarification.
👍
Thank you sir
Much appreciated.
Hi Humphrey can you please make a video on how to make a portfolio in google sheet, if you can. Please
I can consider that for a future video, yes, thank you for commenting.!
Fxaix on fidelity is a mutual fund on fidelity and voo on vanguard is an etf but fidelitys FXAIX has a lower expense ratio so it it begger than VOO?
Thanks for a very clear explanation of the differences
You are welcome!
I have a target date fund with my employer’s 401(k) and the net & gross expense ratio is .09%. im assuming that ratio is adequate or should i still look further into etfs and index funds? maybe for a IRA?
That expense ratio is good. It's not too high. You can get EVER so slightly lower (0.06 or 0.04) at Vanguard but I wouldnt worry about it.
Humphrey Yang Thanks so much!
Great explanation on Mutual funds, Index funds & ETF
I like your KISS ( Keep It Simple Stupid ) breakdown !
This vid is great, you got my sub....your content is straight to the point and clear. Great candy jar and m&m example.
Yang it gave me good understanding. Thank you for that
One thing which I noticed about Index Fund is it overnight fee or weekend fee, which is not with ETF. I was wondering if I could get anything on this
Thank you
Graham Stephan analogies. (Destroy that’s like button) Love it!
Haha trying to be like him one day, we'll get there! Appreciate the comment too.
Humphrey Yang awesome. Can’t wait on the next video!!
Hey there, im looking at starting an index fund for my kids- where would you suggest i start? I have zero experience in this arena.
Thank you for this! I would love if you could include hedge fund. This is the only one I'm still confused about.
Also, how can we find out what time an index fund is traded in the day?
Hi, great video on ETF, Index funds and Mutal Funds. It will be more helpful if you give example of real ETFs and perhaps show how they are doing? Also, what is the min required amt for buying PTF?
S&P 500 is a good example
Hi Humphrey, Great videos. It will be great if you could little bit slow down when you speak so folks like us can digest. Keep making great videos. Thank you so much.
Great info, can you provide info on Target Date Funds?
2:27 okay graham stephan...
Amazing explanation. Thank you👍!
anyone have any video recommendations for info on stocks starting at ground zero. taking an economics class and i have no idea anything about stocks or investing. im clueless about a lot of words used in the videos i’ve watched and no video seems to explain them.
Solid advice. Thank you
Very helpful! Thanks so much for the info. :)
Glad i found this channel, subscribed! Keep the great content going!!
Awesome, thanks for subbing! Appreciate the support.
Really fantastic video, created a lot of notes for my future investing! Thank you so much!
I've read that ETFs are more tax efficient than index funds. I believe in long-term investing, and I don't plan on selling anytime soon, so would I save more on taxes with an ETF or index fund in the long haul in a taxable brokerage account?
I think it depends, but this article sums it up well: www.etf.com/etf-education-center/etf-basics/why-are-etfs-so-tax-efficient
I've read that ETFs are more tax efficient than index funds.
Why?
With things like zero expense ratio mutual funds becoming a thing, has your opinion of mutual funds changed at all. And if not, why?
This is so helpful, thank you! I just open a Roth IRA and want to learn more before I really get started. Took a 12-week personal finance course a few months ago and have been doing a little research. Love your approach to sharing this information!
Where did you take this finance course?
Have you heard about anything regarding IRPs sold by financial groups like Greatway Financial?
Plain simple, understandable. Good job 👍🏻
thank you ! very well explained. *thumbs up*
Finally an explanation I understand. Thank you. Can you talk about what it means and what happens when the market crashes? What happens to money you've invested so far and your shares and stuff?
Thanks for your comment. If the market crashes your investment reflects the adjusted price of the security you purchased, so in the event of a market crash, you still own the ETF/Index Fund, but it may just be worth less - but over a long period of time (40+ years), it should continue to grow. If you look at all the historicals in the past 100 years, for the most part the indexes go up slowly over time. Where people get tripped up is that they want a fast return so they get into more speculative investments. I hope this helped! GL
Thnku
still I just don't understand what is the point in dumping 3 grand into a single index fund when I can dump the same amount into the equivalent etf or even diversify it? what is the advantage of an index fund over an etf? or is there one?
What do you mean by paying commission fees to a brokerage? Cant you purchase direct on vanguard, fidelity etc? I don’t see how Robinhood saves any money please let me know. Thanks!
until recently, brokerages used to charge you fees for just making trades, that has since become non-existent since Robinhood introduced that concept back a few years ago, the rest of the industry has conformed to that.
@@humphrey Makes sense, thank you for the reply.
I love yoy Humphrey!! You are a blessing!!