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.
the best market strategy is to work with a credible investing coach. Since a while ago, I've been in touch with a coach, mostly because I lack the depth of understanding and mental toughness to deal with the ongoing market conditions. You lack the information necessary to succeed in a competitive market, not because you're doing anything wrong, but rather because of your lack of experience.
Dave is usually right on financial advice, but he is wrong on this topic. ETFs have evolved well beyond just the S&P 500 Index. Not only are ETFs a fraction of the cost of mutual funds they are also much more tax efficient (which makes a big difference in non-retirement accounts). Not all ETFs have low turnover either. There are ETFs with over 100% turnover in a single calendar year yet do not distribute capital gains. Also, just because you own an ETF doesn’t mean you are “timing the market”. You can buy and hold for the long term just like you can with a mutual fund (but without the transaction fees). I’d argue with Dave on this point any day of the week. Love the guy, but this is not the right advice.
Dave's advice on ETF should be "yes, it's great. However don't be tempted to sell it. Just buy and hold, buy and hold, buy and hold. And only buy broad market indexes. Less specialized, the better."
this. this is it. thanks man! i just want to invest and not worry about it idc about insane profit i just want consistent growth, in ur experience should i go etf or mutual funds
I agree its as if he is wearing blinders. Dave did so much benefit for me and forever will be thankful for his teachings. But his business has turned into just that a business . Nothing wrong with that but his ELP's are not great and with a little studying you can do better on your own
I love most of Dave's advice but I think this is one area that he drops the ball. A diversified portfolio of ETF's with low fees is the best way for a majority of people to invest. Lower fees. Lower tax implications (assuming it's in a taxable account), and you're guaranteed to get the same return as the market. The idea that there are mutual funds out there that consistently outperform the market in down years and up years is just false. If they did, everyone would buy them. Dave, please share the ticker symbols for these four mutual funds that you claim all out perform the market net of fees over a 10-20 year period.
Yep. I think he’s trying to go super low volatile. However, if you listen to Buffett, he talks about buying the index; you don’t know what’s going to happen in a week, month or even a year, but in the long term, ETFs trend upward and have paid handsomely. Mine have all done well! Especially my Vanguard, Blackrock and Schwab Funds! If you dollar cost average and have the means to buy more in a dip, you never lose in the long term!
I own 20 different ETFs, and NONE of them mimic the S&P 500. I also have owned them for years. Pretending like you will inherently day trade them is very disingenuous.
“They are not that hard to find”... also says “my broker looks through 8000 mutual funds and gives me 4 to look at and I choose one in 30 secs”. OK DAVE
He's so cute. Buy the managed fund that in the future is going to outperform the market, and don't buy the managed fund that in the future is going to underperform the market. Gee, why didn't everyone else think of that?
Maybe because Dave makes money selling Mutual Funds with high commissions. That's why he recommends them, because he gains. Just listen to Dave until you get out of debt. Then switch to someone else.
Wow, if that is true then Dave is nothing more than a salesman collecting commission. That is a big blow to his integrity since he is trying to help people make responsible decisions with their money. Shame on Dave.
I have to respectfully disagree with you Dave. Based on data from 2014, 86% of active mutual funds Failed to beat the S&P 500 Index. And the ones that usually beat the index fail to beat it the next year. Also, using a Mutual Fund you run into tax consequences at year end due to trading they have done during the year which you have to file on your taxes. So in my honest opinion, your better off with a diversified ETF strategy and you add to those ETF's on "panic" sell-offs due to the crisis of the quarter it seems lately. Don't trade it, so you have no tax liability. Few examples are (S&P 500 Growth Fund) IVW, 10% energy allocation with (IYE) & (DVY) iShares Select Dividend stocks paying a nice dividend. Just keep averaging in on the dips every time we get another panic decline. Add in a few dividend paying stocks and your good to go. Keep it simple.
Dave and many financial advisors recommend mutual funds because they have higher commission fees. I agree with Dave that ETFs are not good for trading because it's impossible to time the market, but you don't need to use them for trading. You can buy and hold ETFs just like you would with a mutual fund. Like you said, 86% of mutual funds underperformed the S&P 500, so you're best off finding a low-cost indexed ETF that will follow the market rather than trying to outperform it. I'm using a similar allocation with IVW and my retirement account has grown by 7% this year.
NASDX, PRDGX, and CFIMX (I can go on) average at a higher return since their inception than the S & P 500. Of course, if you factor in taxes that will be a different story. That is why I hold these funds in a Roth IRA instead of my taxable brokerage. Despite what I said here, there are certain risks that come with actively management funds (such as a change in fund management) that can effect their performance. Because of this, I recommend Index funds and ETFs to most people (most just want to set it and forget it). An index fund portfolio will also beat most other portfolios. If you want great performance without a lot of hassle, Index funds are the way to go. The statistics you shared sound like a statistic that Daniel Solin shared in his book, "The Smartest Investment Book You Will Ever Read." His book is one of my favorites.
ETFs, Mutual Funds, options, futures, hedge funds, etc all have their place in investing. Your risk tolerance, knowledge, and experience can determine what your course of action is. The more education you get, the better. For the audience that Dave is speaking to, mutual funds can be very beneficial. For those who recommend ETFs, they are more financially educated than the average person. Some people do not even know what a mutual fund is.
Hi Tech Custom ... ETFs are better in ROTH IRA (TFSA) no tax on dividends. I use ETFs for a long time and the dividends are awesome. There is however a temptation that most people do not talk about ... the temptation to trade at a capital gain of moderate value (ex: ETF went up and the total profit after fees is 100$ but dividend is 20$ a month, do you sell or keep and collect the dividend and reallocate it?). I love ETFs and I love mutual funds. Both pay me every month without fail. My main use of ETFs are for indexes and hedge funds. My main use for mutual funds is diversification and compound interest. Never allow your investment income to be taxed unnecessarily. Have a great day :)
I think the majority of savvy investors will actually recommend etfs because of lower fees and they have a tax advantage that mutual funds do not. There’s a SEC law mandating that mutual funds distribute 90% of dividends earned to people who own interest in the fund each year. Consequently the investor cannot control the taxable event.
You are assuming everyone tries to time the market. ETFs are less expensive. Managed funds are lagging index funds in performance. I disagree with you on this video..
Tony Robbins book unshakeable is quite clear with the data between mutual funds and index funds. Index funds have lower fees, lower tax costs and outperform the high majority of mutual funds.
Sonny Torres if a mutual fund and ETF have the exact same fee, the mutual fund would be superior as it’s not subject to volatility of ETF trading. For example, compare VTI and VTSAX.
Aside from the fund fees or things like that, sometimes it's difficult (not impossible) to find clearly laid out dividend amounts for mutual funds. If you're looking for regular income, it's easier, at least for me, with ETFs.
@@stephenvsawyer You mean intraday volatility, which really doesn't matter for long term investing. I personally like the intraday volatility because I'll throw in my limit order after the open and usually catch an intraday dip that would be impossible to capture in a mutual fund. Overall I doubt it amounts to much of anything in the long run, but I do enjoy putting my trades in and watching them fill. :)
ETF is so you can buy into a fund at a lower entry point, say, $100. Many comparable mutual funds have a minimum of thousands of dollars. So, if you have very little to start with, an ETF is ideal. Not for 'timing the market' but to get you started for the long term, Dave.
It really is not that hard to find them. Just google “funds that have outperformed the SP 500” and you will get a list of results to study. Choose ones that have consistently beat the SP500 over the long term when fees are included. Adults with internet access are capable of doing this in an hour or two. It’s really not that hard
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
IVV(Growth), IXUS(International), HDV(Growth and Income), IJS(Aggresive)...how is that any different from buying the equivalent mutual funds, besides not having to pay $2500 or so up front?
@@mjlyco9752 Bid Ask Spread is the only thing you have to face with ETFs, fractional shares can be purchased through tons of different platforms now (Robinhood), and DRIP also works through tons of different platforms now (Robinhood), and tons of different platforms have $0 transaction fees (Robinhood).
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
@@Lourd-Bab However, if you do not have access to a professional like Clementina Abate Russo, 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.
The data may show that timing the market doesn't work BUT the data also shows that fees almost always mean you underperform the market. For the majority of investors, ETFs are the best way to invest. No doubt about it
@@jessie5342 your 'argument' is a clear example of the appeal to authority fallacy. Dave is a millionaire, but he can still provide bad advice like this video.
An Index fund doesn't always mean it is the S&P 500 index or doesn't out perform that specific benchmark. There are Index funds and ETFs that outperform the S&P 500. But Dave is right it's not hard to find them. As far as funds or ETFs it really depends on the platform you are using. You can invest in partial shares of ETFs and not pay brokerage fees with an account with M1 Finance or Robinhood and not pay commissions. Also it depends on the account. If you are investing within a tax free or tax deferred account like a Roth or 401(k), respectively, than mutual funds work great. If you are in a non tax advantaged account and you are investing short term compared to the length of time for retirement, say 3 -5 years, ETFs may be right for you to avoid paying taxes on dividends and distributions from the ETF because you can have it set up under a dividend reinvesment plan (DRIP) and just let you investment grow without dealing with the extra paper work. It's really not a one size fits all question and answer.
ETFs offer so many perks. Liquidity, low fees, and frankly diversity. The shear amount of products that exist in that space is truly shocking. On top of that if you have experience you can hedge your positions with options. What is there to lose with ETFs
Dave should have left it at most people don't understand how to invest and walk away, so having a fund manager is beneficial. If you know what you are doing ETF's save you the fees
Low cost etf ALL DAY, BEATS mutual funds. MOST fail to beat the s&p, but I guarantee those mutual funds have expense ratios higher than my .03,.05 ,.07% in my ROTH IRA,so taxes are NOT an issue. I hold for retirement,so I will NEVER trade them,I hoard them
He's correct, there not hard to find. 3minutes of Googling came up with this for growth, "The Growth Fund of America", averaged just over 13% over 45 years, though past performance is no guarantee of future results.
That number is time weighted average and doesn't reflect fees. We only get dollar weighted average return. Dave helped me to get out of debt so I have much love for him. But I don't understand why he recommends mutual funds over index funds. Most financial gurus like Warren Buffett, Ray Dailo, John Bogal recommend index funds.
An ETF can be diversified differently than an index. There’s large cap, dividend, international, and actively managed ETF’s. I think Dave should do more research. My ETF portfolio beats the S&P consistently by 4-6% each year and I have lower fees to deal with.
So I guess we are not allowed to buy and hold etfs, it’s also not hard to find etfs that outperform the market every year, like arkk, tan, clou, botz, spyg, voog, vug.
Sorry, Dave. Something's wrong if you come across an index fund that outperforms. They are not supposed to do that. They are supposed to match the index they're tracking. If these funds you use are outperforming the index they track then they can easily underperform in the future.
Even certain indices (e.g., S&P 500) go into the red. Pick a mutual fund and compare the performance. Some years it's above the index, some years it below the index. You're not searching for a fund that outperforms it every single year. You're searching for a fund that outperformed it in the long-term (e.g., ten-year periods or inception dates).
The bad thing about some mutual funds over ETF's is the minimum investment is sometimes high on people just dipping their toe into investing. Vanguard S&P 500 ETF has identical returns to S&P with no minimums and an expense ratio of .04%. If u hold it long term wouldn't the fees being paid be considerably less then mutual funds? Plus no minimum?
IMHO: Mutual funds > ETFs. Passive > Active management. Mutual funds allow for fractional shares, automatic reinvestment of dividends, automatic deposits, no trading costs (usually), and there's no bid/ask spread. Active management funds "may" do better but they have to do better AFTER fees which is very hard if not impossible to do consistently. Once you identify a fund that's doing well, it will attract lots of capital and become a closet index fund and/or close to new investors. By holding an index fund you always get the average performance of all funds and individuals. Also, please look at how funds grow with periodic contributions (how you will actually use them) and not "growth of $10,000" (which cherry picks data). Wellington vs Total Market (Link). I'm not a financial advisor and none of this should be taken as investment advice.
Dave knows that but because it’s relatively easy to jump in and out, he recommends avoiding them. You don’t have to go into debt with credit cards and you can prioritize higher interest debt if you need to dig yourself out. He doesn’t advise because his studies show that most people make bad decisions when they’re easily available. If you trust your disciple, then don’t listen to Dave.
What funds is he talking about? He says they are not hard to find, but I cant find them, for the life of me. Does anyone know what he is talking about?
As for growth, possibly this "The Growth Fund of America", averaged just over 13% over 45 years, though past performance is no guarantee of future results.
90% of my portfolio is built using these spreadsheets in the top corner. I only buy dividend paying stocks, and I buy index funds. Mutual funds are for posers.
Only problem with this thesis is that active managers attempt outperformance primarily by market timing strategies, dave just recognized that research at large shows that is a losers game so he recommends you by primarily market timing mutual fund........
I was going to say the biggest problem with mutual funds- probably for most people is the minimum investment is thousands of dollars. Once I max out my retirement I'm planning to start investing in a brokerage but don't really want to wait to save afew thousand dollars above my emergency fund to dive in-- so I'd be leaning towards ETFs at least in the beginning and will go from there--- also it seems like ETFs have lower tax implications which would make more sense in a taxable non-retirement brokerage account to me.
He thinks mutual funds are great, until the fund distributes 22% of it's assets one year to cover redemptions and he has to pay the tax on it. This usually doesn't happen with etfs.
I have mutual funds that outperform the S & P 500 in my Roth IRA; however, I use ETFs in my taxable brokerage (I invest in them for the long term) because they are more tax efficient than actively managed mutual funds.
Jason Petersen can you please share which mutual funds they are? Also I am planning to open a roth ira, do you have advice which broker to open it with
@@dacokc just shows you how little research others do before putting out a negative comment, I found some potentials in just a few minutes of Googling myself.
The title is a bit of click bait. There is an ETF that is equatable to almost any mutual fund you can find and with almost the same fee structure. Don't use either Mutual Funds or ETFs for market timing purposes but ETF if I got it right is preferred because their dividends are usually considered qualified vs non qualified and this is based upon how long you have owned the ETF. And I think this is more favorable than Mutual Funds because they are either long term cap gains, short term cap gains or dividends. I'm still having some trouble sorting all this out but at best, for a long term holder of the fund, they would be exactly the same.
I invest in an ETF's if you play the long game you make money through divdends paid to you and if you want to sell sell when they are at a high. I'm glad that Dave acknowledges that ETFs are not bad.
I do very well with most of my stock funds being index funds. Love Dave but don’t like high fees and front end loads. I don’t need a financial adviser. Or as I call them ,The middle man.
How can anyone possibly recommend four categories without knowing anything about ones finances? Wow my compliance department would hang me. Lots of hype for uneducated public
your not jumping in an out of the market you can build a portfolio that's diversified with 3 ETF's and let it ride balancing it once a year, brokers are just concerned about losing their commissions.
I've done some research on this, good ETFs that generally match Dave's growth, aggressive growth, growth and income, and international have lower costs and, as many people in the comments pointed out, different tax implications which generally favor young lower income people. I personally was not able to find passively managed index mutual funds that corresponded to Dave's categories AND that in a portfolio beat the S&P 500 in total return. Was able to find actively managed funds that did, but the fees and expense ratio at that point can really dig into your return.
What are the implications of the fees and expense ratio digging into your returns when comparing the net return to that of an index fund? Dave said he has four actively managed mutual funds that beat some comparable index (i.e., S&P 500, DJIA, Russell 2000, etc.) after fees and expenses. If that's the case, it doesn't matter if the fees and expense ratio digs into your return, does it?
These statements are not only boastful, but baseless. Data have shown that index funds (or, E.T.F.s) typically beat actively-managed funds, largely because of the fees associated with the latter. I don't know which funds Dave Ramsay claims to have, but I'd be interested to find out; as well as to learn exactly what "method" Ramsay employs to seek out such items -- given it is "not rocket science."
Commando, I agree with you. If it's not rocket science and they are so easy to find, why wouldn't he just tell us the four funds that he has, that have outperformed the s&p 500 index funds. I think he can be full of himself sometimes.
ETFs are actually all around better from a tax prospective, mutual funds force income on you with capitol funds. You don’t need to trade ETFs like stocks, you buy and hold
Mutual funds have higher fees I. Order to manage the fund and in addition the fund managers often rebalance the mutual funds (selling off poor performing stocks inside the funds) and you pay Taxes on the sale when they do that. QQQ is probably the best ETF ever created by the way.
An Index ETF is about 1/10th the cost of a mutual fund (sometimes even less) and both are following the same exact index. If you're going to invest in an index, ETFs can save you a lot which really ads up over the years. It's almost 1% and sometimes more. Compounding that really adds up over 30, 40 years. As for Dave, I don't know what he's talking about. Most mutual funds do not outperform the S&P 500. It's VERY hard to find any mutual fund that outperforms the index consistently. ETFs and Mutual Funds are tools. You use the right tool for the job.
You could follow this guy who beat the best investing minds of Harvard, Yale, and Columbia in the ten years through 2016: howibeatgold.wordpress.com/2017/01/25/trash-dump-worker-invests-better-than-harvard-yale-and-columbia/
Why do people keep saying it's hard to find mutual funds that outperform the s&p 500? I don't understand. There are so many of them. I don't know how you could miss them.
Didn't really explain the advantage if you hold the etfs and pick ones that aren't specifically the s&p. And isn't an etf in s&p just an etf in large cap businesses, which ramsey does recommend? I'm confused lol
Is the goal to acquire mutual funds and ETFs that collectively outperform the S and P or should each category (growth, aggressive growth, growth and income, and international) outperform it? Good luck finding a growth and income fund (value/blend) that outperforms the S&P, for example.
If you can buy mutual funds that outperform the S&P 500 after fees...then can't you buy a EFT that outperforms the S&P500 after fees? Is Dave saying that you CAN'T do that?
I respectfully disagree. The evidence-based best way to invest is in low cost, passively managed index funds or ETFs. Active managers cannot consistently beat the market.
Stocks looked to rebound Friday to close out a rough first few days in August, as the jobs report's release takes center stage and an earnings-heavy calendar continues. I’ve heard testimonies of people accruing over $250k this red period. What measures can I take to ensure this?
A solid strategy can be a key component of an investor’s portfolio. Well, the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.
Yes true, I learnt that in 2020, when I lost almost everything. But I switched to using a financial advisor and I've been returning at least $98k every month so I’ve been sticking to investing via an Advisor.
My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
I just checked her up online, and I must admit that she has an extremely outstanding experience in investment. Thanks for sharing. I'm going to send her an email right away
His investment advisers pay him for referrals. He is pushing product, not guiding “With the heart of a teacher “. For him a few hundred million $ is not enough.
Well, this video was five years ago. Perhaps during that time I would agree with him regarding holding a mutual over ETFs. Maybe laws or investing structures have changed since then. Nonetheless, in the year 2021, there is no way I will touch a mutual fund. ETFs are way more profitable and tax friendly.
what about for starting out while you find a good financial advisor? cus i have my roth ira investing in etfs and my intent is for long term and until i find a good financial advisor here to move to mutual funds
Dave, I understand that you are trying to help the general public with their finances (most of whom are ignorant as f***, including me) which I truly appreciate...however, I don't believe mutual funds (99.99% of them) beat the S&P500 on a regular basis (since you can't time the market). And pushing ignorant people to fee heavy mutual funds is really a bad piece of advice unless you let them know which funds you use that beat the S&P500 hands down consistently after paying your fees. You leave it by saying "it is not rocket science" but then you don't direct them to what you found working for you. It might not be rocket science for you (depending on your risk tolerance) but it could be for others. I don't like mutual funds myself (because of the fees) and I am heavy on ETFs...mostly low-cost-low-fee index funds...I am not beating the market but then the market is not beating me as well...I have to say, that was a bad advice.
I have $5,000 to spend and I want to buy more mutual funds. Would it be better if I bought 5 seperate mutual funds for $1000 each, or 1 mutual fund for $5,000 or two different mutual funds for $2500? Thank you keep up the good videos!
@@crunch9876 I know this comment is 2 years old, yet I recommend using M1 Fiance for etfs and stocks. It allows you to buy partial shares so you don't need to hit any minimum requirements.
spread ETF investments over 5 or 6 sectors... basically same as a mutual fund. you get exposure to the best and biggest companies in the sector and usually get a decent yield.
This is horrible advice. He assumes that because ETF's are easy to buy, that people are going to use them to time the market, and therefore they are bad. Mutual funds tend to not outperform ETF index funds. Dave is full of it.
I buy ETF's because it takes very little to get into them. I can also add to my core of ETF's with as little as $55 +/- right now (VXUS) or as much as $300 +/- (VOO). When I have a few dollars I can do a quick buy with no broker fees and very small maintenance fees. I have 7 ETF's I buy that I jokingly call the Phink P&S (Poor & Struggling). Of course it's a tongue in cheek mocking of the S&P. The Phink P&S hit an all time high today of 1136
Dave is blatantly ignoring facts. Look up SPIVA. Statistically no mutual funds out perform their similar indexes over a long period of time. Factor in the fees and they REALLY underperform. Dave is giving bad advice here.
I like Dave.. however.... there are ETF's that specialize so specifically that mutual funds don't. I love DVY and VYM... specifically focusing on high dividend paying stocks. Low fees..
No way im investing long term in a financial vehicle that can be entered and exited as easily as an ETF. You could put your life savings in and that sucker tank tomorrow. Mutuals can’t and don’t do that. They’re rock steady long term.
A total market index fund or a combination of index funds that cover the total market like (ETF) I recommend a 50/50 blend of VB and VTI which gives good weightings in large, mid and small cap covering all of value, core and growth sectors equally.
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.
While the current market offers short-term profit potential, it's crucial to note that executing such a strategy requires expertise and skill.
the best market strategy is to work with a credible investing coach. Since a while ago, I've been in touch with a coach, mostly because I lack the depth of understanding and mental toughness to deal with the ongoing market conditions. You lack the information necessary to succeed in a competitive market, not because you're doing anything wrong, but rather because of your lack of experience.
That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
Her name is ' Rebecca Noblett Roberts ' Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon.
Dave is usually right on financial advice, but he is wrong on this topic. ETFs have evolved well beyond just the S&P 500 Index. Not only are ETFs a fraction of the cost of mutual funds they are also much more tax efficient (which makes a big difference in non-retirement accounts). Not all ETFs have low turnover either. There are ETFs with over 100% turnover in a single calendar year yet do not distribute capital gains. Also, just because you own an ETF doesn’t mean you are “timing the market”. You can buy and hold for the long term just like you can with a mutual fund (but without the transaction fees). I’d argue with Dave on this point any day of the week. Love the guy, but this is not the right advice.
Whats your proof
@@georgeslupski5987 Don't be lazy, do some research, Sam K is correct
How many points above S&P do you really think you're going get with ETFs? Just curious?
Ok I get it.
Benjamin Graham is spinning in his grave.
Dave's advice on ETF should be "yes, it's great. However don't be tempted to sell it. Just buy and hold, buy and hold, buy and hold. And only buy broad market indexes. Less specialized, the better."
this. this is it. thanks man! i just want to invest and not worry about it idc about insane profit i just want consistent growth, in ur experience should i go etf or mutual funds
what does broad market indexes means?
A to the G to the U he means like as opposed to buying only tech etfs buy some general ones, like top 30 nasdaq companies or something like that
@@kygem thanks a lot!
I agree for the most part. However, in my.personal opinion, although healthcare ETFs are specialized, they seem to have a bright future
For investment don't listen to dave ...for getting out of debt yes
💰💯👌🏿
I agree 100%
He’s wrong half the time about debt too
Dave typically gives great advice, but this video isn't one of those videos.
Facts
Why? Just trying to understand
I agree its as if he is wearing blinders. Dave did so much benefit for me and forever will be thankful for his teachings. But his business has turned into just that a business . Nothing wrong with that but his ELP's are not great and with a little studying you can do better on your own
I love most of Dave's advice but I think this is one area that he drops the ball. A diversified portfolio of ETF's with low fees is the best way for a majority of people to invest. Lower fees. Lower tax implications (assuming it's in a taxable account), and you're guaranteed to get the same return as the market. The idea that there are mutual funds out there that consistently outperform the market in down years and up years is just false. If they did, everyone would buy them. Dave, please share the ticker symbols for these four mutual funds that you claim all out perform the market net of fees over a 10-20 year period.
I agree. Dave Ramsey keeps saying that those four mutual funds are not hard to find but never gives us their names.
iamjacquesbarjon I agree my ETFs are doing great
I always look for good rebuttal comments such as this.
can you give a link to those shows and does he actually give the name of the precise fund to choose?
Yep. I think he’s trying to go super low volatile. However, if you listen to Buffett, he talks about buying the index; you don’t know what’s going to happen in a week, month or even a year, but in the long term, ETFs trend upward and have paid handsomely. Mine have all done well! Especially my Vanguard, Blackrock and Schwab Funds! If you dollar cost average and have the means to buy more in a dip, you never lose in the long term!
I own 20 different ETFs, and NONE of them mimic the S&P 500. I also have owned them for years. Pretending like you will inherently day trade them is very disingenuous.
ETFS are the best
“They are not that hard to find”... also says “my broker looks through 8000 mutual funds and gives me 4 to look at and I choose one in 30 secs”. OK DAVE
He's so cute. Buy the managed fund that in the future is going to outperform the market, and don't buy the managed fund that in the future is going to underperform the market. Gee, why didn't everyone else think of that?
smh
If a managed fund beat the market this year, its odds of beating the market next year go down.
I don't get it.
@@ralphparker What does that have to do with the performance over 20 or 30 plus years?
He doesn't really drive it home with his investing advice. He seems to be head over heels for these actively managed mutual funds.
Exactly
Maybe because Dave makes money selling Mutual Funds with high commissions. That's why he recommends them, because he gains. Just listen to Dave until you get out of debt. Then switch to someone else.
Correct. He most likely gets a commission on every referral he makes to one of the local "smartvestors" in your area. It's good business!
Ive noticed this too. I totally agree.
I see you on all his videos saying the same thing. I seem to trust you more now. Haha
Wow, if that is true then Dave is nothing more than a salesman collecting commission. That is a big blow to his integrity since he is trying to help people make responsible decisions with their money. Shame on Dave.
hes good for giving an advice on hownto get out of debt but not on how to invest.
I have to respectfully disagree with you Dave.
Based on data from 2014, 86% of active mutual funds Failed to beat the S&P 500 Index. And the ones that usually beat the index fail to beat it the next year. Also, using a Mutual Fund you run into tax consequences at year end due to trading they have done during the year which you have to file on your taxes.
So in my honest opinion, your better off with a diversified ETF strategy and you add to those ETF's on "panic" sell-offs due to the crisis of the quarter it seems lately. Don't trade it, so you have no tax liability. Few examples are (S&P 500 Growth Fund) IVW, 10% energy allocation with (IYE) & (DVY) iShares Select Dividend stocks paying a nice dividend.
Just keep averaging in on the dips every time we get another panic decline. Add in a few dividend paying stocks and your good to go. Keep it simple.
and the low cost of ETFs.
Dave and many financial advisors recommend mutual funds because they have higher commission fees. I agree with Dave that ETFs are not good for trading because it's impossible to time the market, but you don't need to use them for trading. You can buy and hold ETFs just like you would with a mutual fund. Like you said, 86% of mutual funds underperformed the S&P 500, so you're best off finding a low-cost indexed ETF that will follow the market rather than trying to outperform it. I'm using a similar allocation with IVW and my retirement account has grown by 7% this year.
NASDX, PRDGX, and CFIMX (I can go on) average at a higher return since their inception than the S & P 500. Of course, if you factor in taxes that will be a different story. That is why I hold these funds in a Roth IRA instead of my taxable brokerage.
Despite what I said here, there are certain risks that come with actively management funds (such as a change in fund management) that can effect their performance. Because of this, I recommend Index funds and ETFs to most people (most just want to set it and forget it). An index fund portfolio will also beat most other portfolios. If you want great performance without a lot of hassle, Index funds are the way to go. The statistics you shared sound like a statistic that Daniel Solin shared in his book, "The Smartest Investment Book You Will Ever Read." His book is one of my favorites.
ETFs, Mutual Funds, options, futures, hedge funds, etc all have their place in investing. Your risk tolerance, knowledge, and experience can determine what your course of action is. The more education you get, the better. For the audience that Dave is speaking to, mutual funds can be very beneficial. For those who recommend ETFs, they are more financially educated than the average person. Some people do not even know what a mutual fund is.
Hi Tech Custom ... ETFs are better in ROTH IRA (TFSA) no tax on dividends. I use ETFs for a long time and the dividends are awesome. There is however a temptation that most people do not talk about ... the temptation to trade at a capital gain of moderate value (ex: ETF went up and the total profit after fees is 100$ but dividend is 20$ a month, do you sell or keep and collect the dividend and reallocate it?). I love ETFs and I love mutual funds. Both pay me every month without fail. My main use of ETFs are for indexes and hedge funds. My main use for mutual funds is diversification and compound interest. Never allow your investment income to be taxed unnecessarily. Have a great day :)
Just buy and hold ETFs in your IRA. Easy and cheap long term investing 👍🏼
I think the majority of savvy investors will actually recommend etfs because of lower fees and they have a tax advantage that mutual funds do not. There’s a SEC law mandating that mutual funds distribute 90% of dividends earned to people who own interest in the fund each year. Consequently the investor cannot control the taxable event.
You are assuming everyone tries to time the market. ETFs are less expensive. Managed funds are lagging index funds in performance. I disagree with you on this video..
Tony Robbins book unshakeable is quite clear with the data between mutual funds and index funds. Index funds have lower fees, lower tax costs and outperform the high majority of mutual funds.
I think Dave is dead wrong about this one.
Same
No difference between mutual fund and an etf based on an index? FEEEEEEEEEEES.
Sonny Torres if a mutual fund and ETF have the exact same fee, the mutual fund would be superior as it’s not subject to volatility of ETF trading.
For example, compare VTI and VTSAX.
Aside from the fund fees or things like that, sometimes it's difficult (not impossible) to find clearly laid out dividend amounts for mutual funds. If you're looking for regular income, it's easier, at least for me, with ETFs.
@@Scorpiomaj27889 but if the etf is held in a taxable account it will generally be more tax efficient, irrespective of fees.
@@travis1240 Hmmm, I'll have to look into that, thanks.
@@stephenvsawyer You mean intraday volatility, which really doesn't matter for long term investing. I personally like the intraday volatility because I'll throw in my limit order after the open and usually catch an intraday dip that would be impossible to capture in a mutual fund. Overall I doubt it amounts to much of anything in the long run, but I do enjoy putting my trades in and watching them fill. :)
ETF is so you can buy into a fund at a lower entry point, say, $100. Many comparable mutual funds have a minimum of thousands of dollars.
So, if you have very little to start with, an ETF is ideal. Not for 'timing the market' but to get you started for the long term, Dave.
Thanks for commenting squid boy, looks like this is your frist comment with us! Welcome! Don't forget to subscribe! th-cam.com/users/DaveRamseyShow
Lol that sounded a little passive aggressive.
the TILT
FYI, there are many funds without such minimums. There are many funds with very low minimums. Keep searching.
thanks for commenting squid boy!
Its not hard to find em!
*also never shows them*
There are laws about making mutual fund recommendations that Dave doesn't want to mess with
Cap
It really is not that hard to find them. Just google “funds that have outperformed the SP 500” and you will get a list of results to study. Choose ones that have consistently beat the SP500 over the long term when fees are included. Adults with internet access are capable of doing this in an hour or two. It’s really not that hard
VWUSX
VTMSX
VSEQX
VWIGX
Use google, dude. There are laws that can put him in a heat of trouble for recommending
this is the power of commissions!
Moving from single stocks to ETFs, tired of the circus. What are best strategies to divesify my $550K investment portfolio?
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
pls how can I reach this expert, I need someone to help me manage my portfolio
Victoria Louisa Saylor is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Mutual funds do not beat ETF’s. End of story!
Most of the time
Sir, some do....
IVV(Growth), IXUS(International), HDV(Growth and Income), IJS(Aggresive)...how is that any different from buying the equivalent mutual funds, besides not having to pay $2500 or so up front?
Deed
bid/ask spread, trading costs, fractional shares, automatic reinvestment of dividends.
@@mjlyco9752 Bid Ask Spread is the only thing you have to face with ETFs, fractional shares can be purchased through tons of different platforms now (Robinhood), and DRIP also works through tons of different platforms now (Robinhood), and tons of different platforms have $0 transaction fees (Robinhood).
it's different because Dave won't be getting any kickback :D
Throughout the entire portfolio construction process, it is vital that you remember to maintain your diversification above all else.
Ascertaining ones financial situation and goals is the first task in constructing a portfolio.
Picking the right stocks for my portfolio has been a big challenge.
@@bernardogutierrez8392 you should choose stocks that satisfy the level of risk you want to carry in the equity portion of your portfolio.
I totally agree with you Liam, It is not enough simply to own securities from each asset class; you must also diversify within each class.
@Liam John, I’ve seen a review on Frost Hilda’s trades on various investment forums I’m on, is he really as profitable as they say?
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
@@Lourd-Bab However, if you do not have access to a professional like Clementina Abate Russo, 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.
@@GeorgestraitStriat Oh please I’d love that. Thanks!.
@@Lourd-Bab Clementina Abate Russo is her name.
Lookup with her name on the webpage.
The data may show that timing the market doesn't work BUT the data also shows that fees almost always mean you underperform the market. For the majority of investors, ETFs are the best way to invest. No doubt about it
Usually love your advice Dave but this was a bad video.
What do you normally invest in now?
This video really was bad information.
Are you a millionaire?
@@jessie5342 your 'argument' is a clear example of the appeal to authority fallacy. Dave is a millionaire, but he can still provide bad advice like this video.
One For All no we’re not millionaires which is exactly why this isn’t good advice
An Index fund doesn't always mean it is the S&P 500 index or doesn't out perform that specific benchmark. There are Index funds and ETFs that outperform the S&P 500. But Dave is right it's not hard to find them. As far as funds or ETFs it really depends on the platform you are using. You can invest in partial shares of ETFs and not pay brokerage fees with an account with M1 Finance or Robinhood and not pay commissions. Also it depends on the account. If you are investing within a tax free or tax deferred account like a Roth or 401(k), respectively, than mutual funds work great. If you are in a non tax advantaged account and you are investing short term compared to the length of time for retirement, say 3 -5 years, ETFs may be right for you to avoid paying taxes on dividends and distributions from the ETF because you can have it set up under a dividend reinvesment plan (DRIP) and just let you investment grow without dealing with the extra paper work. It's really not a one size fits all question and answer.
I don’t jump in and out of ETF’s. I’ve also found them performing better than the S&P 500. Some as much as 14%+ over 10 years
ETFs offer so many perks. Liquidity, low fees, and frankly diversity. The shear amount of products that exist in that space is truly shocking. On top of that if you have experience you can hedge your positions with options. What is there to lose with ETFs
Dave should have left it at most people don't understand how to invest and walk away, so having a fund manager is beneficial. If you know what you are doing ETF's save you the fees
Low cost etf ALL DAY, BEATS mutual funds. MOST fail to beat the s&p, but I guarantee those mutual funds have expense ratios higher than my .03,.05 ,.07% in my ROTH IRA,so taxes are NOT an issue. I hold for retirement,so I will NEVER trade them,I hoard them
chrysler3c Can you help me with research? I know nothing about investing. Trying to google everyrhing I can.
he always says "they're not that hard to find" but never mentions which funds they are, because he knows people will see the true results
He's correct, there not hard to find.
3minutes of Googling came up with this for growth, "The Growth Fund of America", averaged just over 13% over 45 years, though past performance is no guarantee of future results.
He's right. They aren't that hard to find and there are so many of them.
That number is time weighted average and doesn't reflect fees. We only get dollar weighted average return. Dave helped me to get out of debt so I have much love for him. But I don't understand why he recommends mutual funds over index funds. Most financial gurus like Warren Buffett, Ray Dailo, John Bogal recommend index funds.
The ones he owns might be closed to new investors.
Avengers: The Investing Initiative
Pretty sure they meant 13% per year average. If that is trash please share what your returns are.
An ETF can be diversified differently than an index. There’s large cap, dividend, international, and actively managed ETF’s. I think Dave should do more research. My ETF portfolio beats the S&P consistently by 4-6% each year and I have lower fees to deal with.
So I guess we are not allowed to buy and hold etfs, it’s also not hard to find etfs that outperform the market every year, like arkk, tan, clou, botz, spyg, voog, vug.
He must be getting paid by major mutual fund companies.
Sorry, Dave. Something's wrong if you come across an index fund that outperforms. They are not supposed to do that. They are supposed to match the index they're tracking. If these funds you use are outperforming the index they track then they can easily underperform in the future.
Even certain indices (e.g., S&P 500) go into the red. Pick a mutual fund and compare the performance. Some years it's above the index, some years it below the index. You're not searching for a fund that outperforms it every single year. You're searching for a fund that outperformed it in the long-term (e.g., ten-year periods or inception dates).
The bad thing about some mutual funds over ETF's is the minimum investment is sometimes high on people just dipping their toe into investing. Vanguard S&P 500 ETF has identical returns to S&P with no minimums and an expense ratio of .04%. If u hold it long term wouldn't the fees being paid be considerably less then mutual funds? Plus no minimum?
IMHO: Mutual funds > ETFs. Passive > Active management. Mutual funds allow for fractional shares, automatic reinvestment of dividends, automatic deposits, no trading costs (usually), and there's no bid/ask spread. Active management funds "may" do better but they have to do better AFTER fees which is very hard if not impossible to do consistently. Once you identify a fund that's doing well, it will attract lots of capital and become a closet index fund and/or close to new investors. By holding an index fund you always get the average performance of all funds and individuals. Also, please look at how funds grow with periodic contributions (how you will actually use them) and not "growth of $10,000" (which cherry picks data). Wellington vs Total Market (Link). I'm not a financial advisor and none of this should be taken as investment advice.
YOU DO NOT HAVE TO JUMP IN AND OUT OF AN ETF DAVE. And he knows that but he doesn’t get a paid when someone buys a an ETF.
Dave knows that but because it’s relatively easy to jump in and out, he recommends avoiding them. You don’t have to go into debt with credit cards and you can prioritize higher interest debt if you need to dig yourself out. He doesn’t advise because his studies show that most people make bad decisions when they’re easily available. If you trust your disciple, then don’t listen to Dave.
What funds is he talking about? He says they are not hard to find, but I cant find them, for the life of me. Does anyone know what he is talking about?
As for growth, possibly this "The Growth Fund of America", averaged just over 13% over 45 years, though past performance is no guarantee of future results.
Where are you looking?
90% of my portfolio is built using these spreadsheets in the top corner. I only buy dividend paying stocks, and I buy index funds. Mutual funds are for posers.
Only problem with this thesis is that active managers attempt outperformance primarily by market timing strategies, dave just recognized that research at large shows that is a losers game so he recommends you by primarily market timing mutual fund........
I was going to say the biggest problem with mutual funds- probably for most people is the minimum investment is thousands of dollars. Once I max out my retirement I'm planning to start investing in a brokerage but don't really want to wait to save afew thousand dollars above my emergency fund to dive in-- so I'd be leaning towards ETFs at least in the beginning and will go from there--- also it seems like ETFs have lower tax implications which would make more sense in a taxable non-retirement brokerage account to me.
I guarantee you none of his mutual funds are out performing the majority of Ark ETFs.
He thinks mutual funds are great, until the fund distributes 22% of it's assets one year to cover redemptions and he has to pay the tax on it. This usually doesn't happen with etfs.
But that doesn't happen in a retirement account like a 401k or Roth IRA, right?
I have mutual funds that outperform the S & P 500 in my Roth IRA; however, I use ETFs in my taxable brokerage (I invest in them for the long term) because they are more tax efficient than actively managed mutual funds.
Jason Petersen can you please share which mutual funds they are? Also I am planning to open a roth ira, do you have advice which broker to open it with
What funds do you have exactly sir? And how much more gains did uou receive? Compared to the S&P 500? Percentage wise!
And if you don't bounce in and out of an ETF? Just because you can doesn't mean you will. I certainly wouldn't without good reason.
Well tell us what 4 mutual funds you use to beat the market. Id love to know. Thanks Dave. Im a truck driver and i listen to your wisdom every day
Gable Mullen don't hold your breath. He gets commissions from the mutual fund company he works with so he is just pimping their junk
here's 4 for you: FSMEX, FBSOX, FCPGX, FSRPX... there are many others you just have to search for about 5 minutes.
@@dacokc just shows you how little research others do before putting out a negative comment, I found some potentials in just a few minutes of Googling myself.
The title is a bit of click bait. There is an ETF that is equatable to almost any mutual fund you can find and with almost the same fee structure. Don't use either Mutual Funds or ETFs for market timing purposes but ETF if I got it right is preferred because their dividends are usually considered qualified vs non qualified and this is based upon how long you have owned the ETF. And I think this is more favorable than Mutual Funds because they are either long term cap gains, short term cap gains or dividends. I'm still having some trouble sorting all this out but at best, for a long term holder of the fund, they would be exactly the same.
I agree with many of his videos, but this one right here is a well example that he isn't always right.
I invest in an ETF's if you play the long game you make money through divdends paid to you and if you want to sell sell when they are at a high. I'm glad that Dave acknowledges that ETFs are not bad.
mutual funds beat index funds? lolololol
Yes. All of mine do.
Andrea Knight how do you study them before buy them?
@@andreaknight6411 name them then
@@abc-jq4hi I want to know the answer to that question too. NONE of my mutual funds beat my ETFs. I've been investing for 12 years.
I do very well with most of my stock funds being index funds. Love Dave but don’t like high fees and front end loads. I don’t need a financial adviser. Or as I call them ,The middle man.
How can anyone possibly recommend four categories without knowing anything about ones finances? Wow my compliance department would hang me. Lots of hype for uneducated public
You pay those fees whether you beat the S&P or not. To me active funds aren’t worth that risk. Index 100% and you’ll get a fair return with 0.01% fees
your not jumping in an out of the market you can build a portfolio that's diversified with 3 ETF's and let it ride balancing it once a year, brokers are just concerned about losing their commissions.
I've done some research on this, good ETFs that generally match Dave's growth, aggressive growth, growth and income, and international have lower costs and, as many people in the comments pointed out, different tax implications which generally favor young lower income people. I personally was not able to find passively managed index mutual funds that corresponded to Dave's categories AND that in a portfolio beat the S&P 500 in total return. Was able to find actively managed funds that did, but the fees and expense ratio at that point can really dig into your return.
What are the implications of the fees and expense ratio digging into your returns when comparing the net return to that of an index fund?
Dave said he has four actively managed mutual funds that beat some comparable index (i.e., S&P 500, DJIA, Russell 2000, etc.) after fees and expenses.
If that's the case, it doesn't matter if the fees and expense ratio digs into your return, does it?
VUG is an ETF that does this consistently with a ratio of .04
It's not so much about timing the market, its about getting in at the right area
These statements are not only boastful, but baseless. Data have shown that index funds (or, E.T.F.s) typically beat actively-managed funds, largely because of the fees associated with the latter. I don't know which funds Dave Ramsay claims to have, but I'd be interested to find out; as well as to learn exactly what "method" Ramsay employs to seek out such items -- given it is "not rocket science."
Commando, I agree with you. If it's not rocket science and they are so easy to find, why wouldn't he just tell us the four funds that he has, that have outperformed the s&p 500 index funds. I think he can be full of himself sometimes.
ETFs are actually all around better from a tax prospective, mutual funds force income on you with capitol funds. You don’t need to trade ETFs like stocks, you buy and hold
Mutual funds have higher fees I. Order to manage the fund and in addition the fund managers often rebalance the mutual funds (selling off poor performing stocks inside the funds) and you pay Taxes on the sale when they do that. QQQ is probably the best ETF ever created by the way.
(2:34) "... which 98% of you dealing with ETFs are doing the S&P 500." Come on Daaaaaave.
Name me two mutual funds that consistently outperform the S&P.
No one will find the golden ticket mutual funds unless you pay big money to someone to find them . Am I wrong ? Then pay 25 percent ? In tax ?
There's a time and place for ETFs and mutual funds. Process over product people, process.
a lot of misinformation in this video. I don't even know where to begin..
An Index ETF is about 1/10th the cost of a mutual fund (sometimes even less) and both are following the same exact index. If you're going to invest in an index, ETFs can save you a lot which really ads up over the years. It's almost 1% and sometimes more. Compounding that really adds up over 30, 40 years.
As for Dave, I don't know what he's talking about. Most mutual funds do not outperform the S&P 500. It's VERY hard to find any mutual fund that outperforms the index consistently. ETFs and Mutual Funds are tools. You use the right tool for the job.
Most brokers offer a bunch of great Vanguard ETFs commission-free. Start there. The truth is either is a good choice.
You could follow this guy who beat the best investing minds of Harvard, Yale, and Columbia in the ten years through 2016:
howibeatgold.wordpress.com/2017/01/25/trash-dump-worker-invests-better-than-harvard-yale-and-columbia/
renewer do both than and see what returns better while considering fees and taxes and what not
Why do people keep saying it's hard to find mutual funds that outperform the s&p 500? I don't understand. There are so many of them. I don't know how you could miss them.
Didn't really explain the advantage if you hold the etfs and pick ones that aren't specifically the s&p. And isn't an etf in s&p just an etf in large cap businesses, which ramsey does recommend? I'm confused lol
Is the goal to acquire mutual funds and ETFs that collectively outperform the S and P or should each category (growth, aggressive growth, growth and income, and international) outperform it? Good luck finding a growth and income fund (value/blend) that outperforms the S&P, for example.
If you can buy mutual funds that outperform the S&P 500 after fees...then can't you buy a EFT that outperforms the S&P500 after fees? Is Dave saying that you CAN'T do that?
I respectfully disagree. The evidence-based best way to invest is in low cost, passively managed index funds or ETFs. Active managers cannot consistently beat the market.
Stocks looked to rebound Friday to close out a rough first few days in August, as the jobs report's release takes center stage and an earnings-heavy calendar continues. I’ve heard testimonies of people accruing over $250k this red period. What measures can I take to ensure this?
A solid strategy can be a key component of an investor’s portfolio. Well, the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.
Yes true, I learnt that in 2020, when I lost almost everything. But I switched to using a financial advisor and I've been returning at least $98k every month so I’ve been sticking to investing via an Advisor.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
My consultant is Nicole Desiree Simon She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
I just checked her up online, and I must admit that she has an extremely outstanding experience in investment. Thanks for sharing. I'm going to send her an email right away
I use Three ETFs for my savings. I have no plan to withdrawal.
Thats awesome Danny, what are the 3 ETF's you use?
Outer Space I’m gonna guess VTI, VB, and QQQ
His investment advisers pay him for referrals. He is pushing product, not guiding “With the heart of a teacher “. For him a few hundred million $ is not enough.
Well, this video was five years ago. Perhaps during that time I would agree with him regarding holding a mutual over ETFs. Maybe laws or investing structures have changed since then. Nonetheless, in the year 2021, there is no way I will touch a mutual fund. ETFs are way more profitable and tax friendly.
Be careful from whom you take advice!!!
what if my jobs 401k only offer ETF ? should I still contribute or just put my entire 15% into mutual funds through a personal Roth ira?
I would fully fund a Roth IRA and then contribute to your 401k up to the company match.
Max Your Roth our 1st, Then contribute to 401k
what about for starting out while you find a good financial advisor? cus i have my roth ira investing in etfs and my intent is for long term and until i find a good financial advisor here to move to mutual funds
Dave, I understand that you are trying to help the general public with their finances (most of whom are ignorant as f***, including me) which I truly appreciate...however, I don't believe mutual funds (99.99% of them) beat the S&P500 on a regular basis (since you can't time the market). And pushing ignorant people to fee heavy mutual funds is really a bad piece of advice unless you let them know which funds you use that beat the S&P500 hands down consistently after paying your fees. You leave it by saying "it is not rocket science" but then you don't direct them to what you found working for you. It might not be rocket science for you (depending on your risk tolerance) but it could be for others. I don't like mutual funds myself (because of the fees) and I am heavy on ETFs...mostly low-cost-low-fee index funds...I am not beating the market but then the market is not beating me as well...I have to say, that was a bad advice.
What are the four mutual funds?
I have $5,000 to spend and I want to buy more mutual funds. Would it be better if I bought 5 seperate mutual funds for $1000 each, or 1 mutual fund for $5,000 or two different mutual funds for $2500? Thank you keep up the good videos!
Have you found any good S and P index funds with less than 3 k minimum?
@@crunch9876 I know this comment is 2 years old, yet I recommend using M1 Fiance for etfs and stocks. It allows you to buy partial shares so you don't need to hit any minimum requirements.
Diversify with at least 4 different funds
crunch9876 yes fidelity FXAIX
Bad advice on ETFs
Agree
spread ETF investments over 5 or 6 sectors... basically same as a mutual fund. you get exposure to the best and biggest companies in the sector and usually get a decent yield.
This is horrible advice. He assumes that because ETF's are easy to buy, that people are going to use them to time the market, and therefore they are bad. Mutual funds tend to not outperform ETF index funds. Dave is full of it.
Dave's support of mutual funds (especially over ETFs) will cause his downfall into oblivion. He can't even justify it because his ego is too high.
...right...we all caught on to His...GAME..!!
Psj, soxx, iwf, vcr, qqq, uxi, vgt... none of your mutual funds will outperform these..
What are the ETF's do you guys recommend ? VOO and VTI are good ones?
I went with VOO, VXUS, VYM, and VNQ. With that said I would do enough research to make a confident decision for your portfolio...
For growth I’m a fan of equal parts VTI, VB, and QQQ
Voo
etfs are better change my mind
@daveramsey what do you think about arkk etf??
What if you sell your house , invest it in the sp500 and live under the overpass for 15 years ?
ETFs are better in taxable accounts as they are more tax efficient
I buy ETF's because it takes very little to get into them. I can also add to my core of ETF's with as little as $55 +/- right now (VXUS) or as much as $300 +/- (VOO). When I have a few dollars I can do a quick buy with no broker fees and very small maintenance fees. I have 7 ETF's I buy that I jokingly call the Phink P&S (Poor & Struggling). Of course it's a tongue in cheek mocking of the S&P. The Phink P&S hit an all time high today of 1136
Can you please index funds for each category you recommend?
check out some of the Vanguards!
Dave is blatantly ignoring facts. Look up SPIVA. Statistically no mutual funds out perform their similar indexes over a long period of time. Factor in the fees and they REALLY underperform. Dave is giving bad advice here.
I like Dave.. however.... there are ETF's that specialize so specifically that mutual funds don't. I love DVY and VYM... specifically focusing on high dividend paying stocks. Low fees..
I've seen some ETFs with growth like mutual funds (they aren't index), so what about buying and holding some of those ETFs?
Let me add, in addition to the mutual funds I own.
What are they? I’d like to buy them
Good pm, can I ask, what if I'm not timing the market and just buying and holding etf is that good?
Asking that type of question would trigger a major cognitive dissonance event and make a guy like Ramsey explode with anger.
Using etf as a 401k though is probably the question
No way im investing long term in a financial vehicle that can be entered and exited as easily as an ETF. You could put your life savings in and that sucker tank tomorrow. Mutuals can’t and don’t do that. They’re rock steady long term.
Hands crossed while talking. Interesting body language.
What is the best mutual fund to invest? I’m new to this
A total market index fund or a combination of index funds that cover the total market like (ETF) I recommend a 50/50 blend of VB and VTI which gives good weightings in large, mid and small cap covering all of value, core and growth sectors equally.