Index Funds vs Mutual Funds vs ETFs (What is the difference?)

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  • เผยแพร่เมื่อ 2 พ.ย. 2020
  • In this video, we discuss the difference between Index Funds, Mutual Funds, and ETFs, what they are, and how to easily invest in ETFs.
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ความคิดเห็น • 65

  • @melanievictor9521
    @melanievictor9521 3 ปีที่แล้ว +30

    I've listened to several of your videos and I just want to say how thankful I am that you've put this info together. You've made it easy to understand. Thank you so much!

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว +3

      Glad it was helpful!

  • @leejmuam1
    @leejmuam1 3 ปีที่แล้ว +8

    This is the second video I watched of you. I like that you talk clear and slow unlike some video that is just super fast and I got lost. Keep up. Love your content.

  • @dddennis1214
    @dddennis1214 2 ปีที่แล้ว +2

    This is an exceptional video! You’ve clarified questions that I’ve had for awhile and showing how to automate investments for an etf is priceless! Thanks so much!

  • @TonyFashionCuban
    @TonyFashionCuban 2 ปีที่แล้ว

    gotta watch your videos over and over to get a better understanding but this is Pure greatness !

  • @jazzyfour
    @jazzyfour 2 ปีที่แล้ว

    You make this real easy even for a non investor or someone with absolutely no knowledge of stock market and all these types of funds

  • @maxclev1
    @maxclev1 ปีที่แล้ว

    This channel is a wonder of making things intelligible to everyone....so glad I found it after months of looking at others....

  • @redpill4744
    @redpill4744 3 ปีที่แล้ว +1

    Subscribed & I'm gonna be sure& watch every single video Excellent content creator. 🏆

  • @DinaTinyworld
    @DinaTinyworld 3 ปีที่แล้ว

    Hi Dear Arvabelle, today is my day 1 to learn from you and saved the videos by making the playlist. Thank you so much for teaching in such a nice and easy way. May God bless you.

  • @user-fj3mm4st9i
    @user-fj3mm4st9i 2 ปีที่แล้ว +1

    Your videos are wonderful! Very underrated

  • @yourstruly5DA
    @yourstruly5DA 3 ปีที่แล้ว

    Very well explained. Keep up the good work!!!

  • @johnnyalvarez2326
    @johnnyalvarez2326 3 ปีที่แล้ว

    You’re are the best teacher... thank you! 🙏🙏🙏

  • @allegraesposito2044
    @allegraesposito2044 3 ปีที่แล้ว +1

    Thanks you do a good job explaining to beginners!

  • @countdown2xstacy
    @countdown2xstacy 2 ปีที่แล้ว

    She is awesome.
    Great job explaining everything.

  • @StrongerEveryDay7
    @StrongerEveryDay7 3 ปีที่แล้ว +4

    Great video, you speak very clear. Please make a video of how public companies benefits being public besides the money they get during IPO. I have try to search for that subject and there are no good videos about it.

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว +1

      Added to the list :)

  • @abdenuryassin7582
    @abdenuryassin7582 3 ปีที่แล้ว

    You are very good everything is Clear you can understand Easy

  • @APC-pm2on
    @APC-pm2on 3 ปีที่แล้ว +2

    Great vid, thanks!

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว +1

      Thanks for watching!

  • @ScottGaul
    @ScottGaul 3 ปีที่แล้ว +1

    This is the first time I use an Applaud button. It was great fun. Thanks for the informative videos.

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว

      Thank you I appreciate it!

  • @mikerainham
    @mikerainham 3 ปีที่แล้ว +5

    Most mutual funds either don’t outperform the index or the fees are too high and wipe out most of the profits made. I think you have to shop around more with mutual funds. You can’t beat the big three though, vanguard, ishares and invesco in my opinion.

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว +3

      Totally agree with you!

  • @minzafar1453
    @minzafar1453 3 ปีที่แล้ว

    Great Job thanks

  • @doctorhorton
    @doctorhorton 3 ปีที่แล้ว +1

    Thank you!!

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว +2

      Thanks for watching!

  • @omax-sy8xp
    @omax-sy8xp 2 ปีที่แล้ว

    Great video. So if one can create automatic deposits into their M1 baskets which contain ETFs, is there any advantage to index fund investing over ETF at this point? Also, just how valuable do you find being able to trade ETFs real-time? I feel like if the platform only let's you execute an ETF order once a day it defeats an advantage ETFs have over index funds.

  • @7ajhubbell
    @7ajhubbell 2 ปีที่แล้ว

    Thank you.

  • @Navidkhatri012
    @Navidkhatri012 3 ปีที่แล้ว

    Thank you

  • @eversunnyguy
    @eversunnyguy 3 ปีที่แล้ว

    Awesome video. I never had time to understand what they mean in details although I traded some ETF. Now I get it. Wonder how long it takes to make a video like this with all the visuals. I wish I had a financial advisor like you 😃.

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว

      Glad it was helpful!

    • @eversunnyguy
      @eversunnyguy 3 ปีที่แล้ว

      @@Arvabelle Please make a video on how to buy mutual funds & bonds if possible. ✌

    • @eversunnyguy
      @eversunnyguy ปีที่แล้ว

      @@Arvabelle Anyway you can get rid of these bots....They keep replying spam...Destroys motivation to comment...

  • @lajoyperson810
    @lajoyperson810 2 ปีที่แล้ว +1

    You have Blessed my soul today! You know you going to Heaven rt! 😊🙌🏽

  • @baseballbrock91
    @baseballbrock91 3 ปีที่แล้ว

    ETFs are my favorite!

  • @Future_is_here1
    @Future_is_here1 3 ปีที่แล้ว

    I have a req please make a video how we can buy them for long time and hold them for long time specially etf

  • @swiberk
    @swiberk 2 ปีที่แล้ว

    index, mutual, etf...which would you fill your roth with?

  • @bighands69
    @bighands69 2 ปีที่แล้ว

    They effectively are all flavors of a mutual fund.

  • @savoy17
    @savoy17 ปีที่แล้ว

    Why are you so good.?

  • @HowlingFishProducts
    @HowlingFishProducts 3 ปีที่แล้ว +4

    There was a fly in your room

  • @raymondkizer1216
    @raymondkizer1216 3 ปีที่แล้ว

    Is going through M1 Finance better than using a brokerage like Vanguard?

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว

      Depends on what you want out of the platform. I have several other videos going over the different brokerages

  • @AminHajou
    @AminHajou 3 ปีที่แล้ว

    i make a td ameritrade account and they ask me to send doncuments by fax or mail , i want to know if mail mean email or regular mail ???

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว

      The best option is to contact their customer service directly and they can help you out with your specific situation!

  • @michaelflinn2791
    @michaelflinn2791 3 ปีที่แล้ว

    I Just got started investing and bought ETF's last month for $200.00 with Charles Schwab.

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว

      Awesome congrats!

  • @rifanfaleel
    @rifanfaleel 3 ปีที่แล้ว

    How these mutual funds are "FCNTX
    & FOCPX", worth to invest?

    • @colin1818
      @colin1818 3 ปีที่แล้ว

      The former (FCNTX) looks like an incredibly forgettable fund. High expenses (.85%) as it's actively managed, high turnover (26%) means it's not good for taxable, and its returns have lagged the category in each of the 1, 3 and 5 year terms. I wouldn't bother looking much further.
      The other fund (FOCPX) is certainly more interesting. Still a very high ER (.87%) due to its active management, and exceptionally high turnover (48%) which means it's a terrible choice for taxable accounts (I'd only recommend this inside a tax protected arrangement like a 401k or IRA). But it has solid returns that have beaten the category fairly consistently. And sometimes in large numbers. Of course, past performance does not indicate future performance, but if you're interested in adding an actively managed fund you could certainly do worse.

    • @rifanfaleel
      @rifanfaleel 3 ปีที่แล้ว

      Thanks for explaining.

  • @reggierico
    @reggierico 3 ปีที่แล้ว

    I think investing in ETFs, Index Funds and Mutual Funds are all great pieces of your investment pie. What do you think of building an investment portfolio of stocks that mirror the S&P 500, with less positions, obviously? I think it is a great strategy to not only invest in the stocks of different sectors but to learn about the stock market and the process.

    • @colin1818
      @colin1818 3 ปีที่แล้ว +1

      I think you're not going to be nearly as diversified if you do it that way. One of the things I did early on was I contributed $50 a month to a "playing around" account. I bought individual stocks, ETFs, all kinds of stuff. No limitations. I realized my returns in that account weren't great as compared to my highly diverse main portfolio. So I eventually folded it up and rolled that money into one of my other funds. But I certainly did learn a lot (mostly what not to do).

    • @reggierico
      @reggierico 3 ปีที่แล้ว +2

      @@colin1818 Hi Colin, My 'learn about the stock market' account is fairly diversified. I have four Mutual Funds, six ETFs, and 38 individual stock positions. My positions in the stocks I have chosen consist of 25% Tech/IT, 15% Financials, 13% Healthcare, 12% Consumer Discretionary, 10% Industrials, 7% Consumer Staples, 6% Energy, 3% Materials, 3% Utilities, 3% Real Estate, and 3% Telecomm. This more or less is an attempt to mirror the S & P 500. I also look for stock with a minimum market capital value of $500 million, and a Beta of 1.2-1.5. Dividends are a bonus. So far, after a year and a half, my performance has been 31.6% for the last 12 months and 29.4% since inception. Of course, those performance number do include the mutual funds and ETFs, which account for about 23% of my balance. Cheers!

  • @eversunnyguy
    @eversunnyguy 3 ปีที่แล้ว

    If I have Ameritrade brokerage account, can I buy Index funds myself ?

    • @Arvabelle
      @Arvabelle  3 ปีที่แล้ว +1

      Yep!

    • @colin1818
      @colin1818 3 ปีที่แล้ว +1

      Make sure you don't have to pay extra trading fees to purchase funds that are outside that company. If you want a selection of Vanguard funds it's very easy to just open an account there and pay no trading fees. But if Ameritrade doesn't charge for the opportunity (I'm not familiar with their platform) then it shouldn't hurt to own those funds cross-platform.

    • @eversunnyguy
      @eversunnyguy 3 ปีที่แล้ว

      @@colin1818 Thanks. I can open on in Vanguard but I will another tax form 1099 which is a overhead. I was trying to all in one place. I will check if Ameritrade charges extra fees on top of what vanguard fee (which owns the index)

    • @colin1818
      @colin1818 3 ปีที่แล้ว +1

      @@eversunnyguy - Understandable. But I'd much rather have two 1099's (and two logins) than have to pay $5 - $10 every time I make a trade.
      Oh, and btw, Vanguard isn't the only place that has index funds obviously. I just used them as an example. They certainly are the best known (being the original indexers) but you could also consider places like Fidelity or T. Rowe (among countless others). Not sure if Ameritrade has special relationships with some outside brokerages, but it's possible they have special deals for some groups that don't exist for others.
      But I'm out of depth there. I know nothing about Ameritrade specifically.

    • @eversunnyguy
      @eversunnyguy 3 ปีที่แล้ว

      @@colin1818 I understand what you mean. I am let to learn more on how Ameritrade treats index funds. I will do more research. But when it comes to ETF and stocks, Ameritrade is very user friendly.

  • @tonalfon4251
    @tonalfon4251 3 ปีที่แล้ว

    👍🏻

  • @zinmot5457
    @zinmot5457 3 ปีที่แล้ว

    Great video! If I was as persistent as that bug, I'd do much better in life

  • @AI-lf9qb
    @AI-lf9qb 3 ปีที่แล้ว

    I think your hair is rubbing on the mic

  • @melmag800
    @melmag800 ปีที่แล้ว

    Slow down! Talking too fast- you have good things to say but you’re speed talking.