Join our EXCLUSIVE Investing Community at: ClearValueInvesting.com GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax Some helpful videos for you: Index Funds Explained For Beginners: th-cam.com/video/LsHcR52gIs8/w-d-xo.html Index Funds vs. Stock Picking: th-cam.com/video/SmXNkVuI3BA/w-d-xo.html How to Invest in Stocks (for beginners): th-cam.com/video/dbDijzEgo7E/w-d-xo.html
Be careful with ETF's, some are shorted heavily by Hedge Funds, just as much as Hedge's short AMC/APE/GME/etc. You can see it when, over the long term, they don't go up much.
Thank you for this, I was looking at the wrong video first. I saw someone on linkedin speaking about ETF's and I was intrigued. Thank you for all your videos
It really depends on your goals. ETFs are more flexible for trading throughout the day, while index funds are more hands-off and better for long-term investors who want simplicity. Personally, I think index funds are perfect for retirement because they’re low-maintenance and have consistently performed well over time.
I see your point, but I prefer ETFs. I’ve been investing in them for a while now, and I like that I can buy or sell whenever I want during market hours. It gives me more control, especially when the market gets volatile.
That makes sense. For me, though, it’s not just about control; it’s about stability. I work with a financial advisor, Joseph Nick Cahill, who helped me build a strong retirement portfolio using a mix of index funds. His expertise made it easier to pick the right ones, and I’ve been seeing steady growth without having to monitor my portfolio constantly.
Absolutely! Joseph is an expert at tailoring strategies to individual needs, whether you’re new to investing or more experienced. I’d recommend looking him up online. His credentials speak for themselves, and he’s great at explaining the pros and cons of options like ETFs and index funds so you can make the best choice for your goals.
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon!
I love ETFs. Find about 3 that are really good that you like. Buy them and keep buying them over and over and over, adding more and more shares as the years go by. Reinvest your dividends and stay the course. Practice that discipline and you will likely be very glad you did one day. The younger you are when you start, the better.
@@hgyt4658I believe you don’t have te report unless you close out your buys. Then you have to report your gains. But as long as your trade is open you don’t have to report. I could be mistaken. I’m also new and just started.
Great video! I invested 40-60% of my income, over the last years, in equity index funds, ETFs and individual stocks, which allowed me to retire in my 30s!
Thank You Brian for the information. But one critical point need to add is that majority of retirement accounts (like 401k, 403, 457) won’t allow customer to buy ETF and they have been forced to choose only index funds.
You wouldn’t want to buy ETFs in a retirement account due to the nature of retirement account being tax deferred. You want mutual funds due to the active management
@@randy74989 again their can be index mutual funds and index etfs. Both are a basket of stocks however etfs the stocks are traded less within the fund causing less capital gains.
@@clos3530 You can buy ETF's and stocks in an IRA so that's not why. I think it's because of the kickback your employer gets due to the index funds higher expense ratio. Either that or people (all of our employers) are dumb af and are pissing away our retirement.
I’ve been investing in ETF’s for a few years now. I have the majority in VTI which is a total index fund but I also have a small cap, mid cap, emerging market and real estate ETF for diversity. At the moment they are down a little after the events of the last couple of years but I’m confident they’ll come up again soon. Everything I’ve researched also says ETF is better than index funds
I think you meant to say mutual funds not index fund. Index funds can be both mutual funds and etfs. Index fund just means it’s a fund that follows a particular index such as s&p or russel 2000 etc.
Your explanation is realistic and straight to the point. l watch several video's on how to trade in the market but haven't made any headstart because they are either taIking some gibberish or sharing their story of how they made it. And l don't want to make mistakes by taking risks on my own
The 85% of funds managers underperforming the index provided is for any single year. More impressively and importantly is to look at that figure over 5, 10, and 20 years, where it increases to 90, 97, and 99%. That makes for a more than compelling case for index investing, and how very rare the likes of Peter Lynch truly are.
@@gagnecaron658 Most of the people railing against passive investing also just happen to be active managers themselves. It is wise to look for a fiduciary CFP when starting out. I went with James Fletcher Brennan and I have had awesome experiences with him. Going from $25k to $90k in 8 months. I can say that's over-performing the index and S&P 500
That's because funds have to constantly move with the market. If you are a long term investor that just buys and holds you can easily beat the market. If you just invested in the FAANGM stocks over the past decade you would have killed any index fund.
@@stanleyfujiwara1394"you can easily beat the market" Who to trust, Warren Buffet and Charlie Munger saying it's incredibly hard to consistently beat the market, who advocate for index funds for the vast majority of investors despite being active investors themselves, or... who are you again?
Thanks for breaking it down very simply. I knew Index funds and ETFs were extremely similar but didn't know the exact details. It seems like ETFs are the way to go.
Thank you for the video I was unaware of the tax implications of a Index Fund vs ETF and learned something new today. If you had an Index fund in a roth, the tax implications would be irrelevant right?
My portfolio does not just cater for dividend stock, I hold $VFIAX in my Roth IRA and $VTI ( total stock market ETF) in my taxable brokerage account, two of my largest holdings. The individual dividend stock position all compliments the index holdings.
Diversifying portfolio can be challenging without the right guidance. If you lack market knowledge, your best bet is to seek the expertise of an investment coach. That is how I have managed to stay afloat in the market, increaseing my portfolio over 60% in the beginning of the year. It is the best way to start up investment in my opinion.
@@briandadude - depends on the brokerage you use, I can buy fractional shares of any ETFs on robinhood. Also vanguard now allows you to also purchase fractional shares of ETFs as long as you'll buying "their" ETFs.
I never knew that ETF is more tax efficient than Index Funds. I already have a bunch of Index Funds on my Roth IRA account. I was contemplating wether to invest in ETF or Index Funds on my taxable brokerage account. After watching this video and some of your videos on Index Funds and ETFs, I decided to go with a S&P 500 ETF on my Taxable brokerage account. That way I could sell cover call options in the future for more passive income.
You shouldn’t be concerned with being tax efficient in a retirement account since all gains are tax deferred anyways. Mutual funds and etfs are the same in the sense that they are a basket of stocks however etfs are more passively managed meaning less capital gains. Mutual funds that you are buying that are index oriented towards the S&P is more active where the money managers are trying to achieve the best return possible. Within your taxable account if you are just getting started it’s best to buy A share mutual funds which pays the fee upfront but then you never pay a fee again. If you have a large amount to invest up front then you can look at etfs
You’re the best! I watch your videos everyday. Trying to learn stocks now. I bad very bad choices in life and don’t have any retirement saved at 54 years old. I know I’m screwed. Hoping stocks can give me enough return for my retirement in 15 years
I think you meant to compare mutual funds and ETFs. You can have an Index Mutual Fund and an Index ETF as well as actively managed versions of each. That was one of the best comparisons I've seen of Mutual Funds vs ETFs. I personally prefer ETFs as well. You also have other options that you do not have with Mutual Funds, like Stop Loss orders.
If you want to be simple and long term investor that doesn't want to keep looking to the price movement. Just Invest and forget. Index fund is for you. No emotions involve and save you time and effort. But if you want to be savvy and want to time the market and willing to pay for spreads then ETF is for you.
Thank you for explaining this. It is so valuable to have people who can communicate these financial things that should have been taught in schools. Thank you.
Love ETF and Index funds I learned about index funds and ETF from a wise man back in the 1990s it's something not taught in public school. I wish it was. You literally can become a millionaire in ETF and index funds. Can you make a video of how it's done
I'm currently aiming to refrain from initiating new purchases to steer clear of potential pitfalls in a bear market scenario. Earning profits in stocks proves challenging when institutional investors are primarily responsible for the selling pressure. I did come across an article highlighting individuals who managed to achieve gains of up to $150,000 amidst this market downturn. However, I'm curious about your thoughts on the best stocks to consider purchasing at this juncture or placing on a watchlist?
I agree, reason I have all my invt-decisions ran through a coach on a daily-basis, it’s been 3years and counting and I’ve grown over $2million in gains, my coach's-analysis so far has steered me off losses and troubled waters and guided me make the most off major-breakthroughs in the mrkt, and esp. in this downtrend, her safe haven asset- trading, short-selling, ETF shorting skill-set are very essential..
Sure, the inv-coach that guides me is Margaret Johnson Arndt, she's popular and has quite the audience, so it shouldn't be a hassle finding her, just search her
My favorites are BKLC (ETF from BNY Mellon) and FNILX (Mutual Fund from Fidelity) - both are 0.0% Net Expense ratios, and solid in returns. These are the only two you need, really. Close competitors: SCHG, ITOT, VTI, FXAIX etc.
Thank you. Love your videos. I will be going for an ETF. Which ones should a beginner investor with small amounts plan to start with on a regular basis? Thank you.
I like index mutual funds. I feel like I actually own the stocks in the index and my value will always match the value of the stocks. ETFs to me is more like an IOU to shares of stocks someone else own. The value of my ETF is not the value of the shares. The ETF can be slightly higher or lower than the NAV. To me it is like owning actual gold versus a document that says I have access to gold held by someone else. When the world is running fine these issues don’t matter. But when system are breaking then small details can make a difference in how much money you are getting back.
I really enjoy your videos, but in this case I have a quibble regarding terminology. I feel that in every instance of you saying the words "index fund" it would have been more proper for you to have used the term "mutual fund". After all, an ETF (Exchange Traded FUND) can also be based on stock indexes (SPY for the S&P 500, and QQQ for the Nasdaq 100 index, as two examples). The characteristics you ascribe to "Index Funds" in this video are true for mutual funds, but not for all Index funds (since some of them are ETFs).
Thank you! He had me confused at first, since I have etfs that are index based, and I consider them " index funds". I've always thought of the others as " mutual funds"
I love you’re videos I was wonder if you can do a video on Three top index funds that pay dividends include: (VYM) Vanguard High Dividend Yield ETF. (VYMI) Vanguard International High Dividend Yield ETF. (BND) Vanguard Total Bond Market Index Fund. I did some research about the index funds thanks to you’re videos just wanted a second opinion. Thank you.
I need peoples opinions/insight. Brian you were reading my mind on this video. I’ve been researching etf’s vs. index’s. I’m leaning towards ETF because I plan on putting more than 6500$ a year into this vs. most index’s I’ve seen are Ira/Roth Ira. I have no plans to touch this money for at least 15 years. Will I have to pay taxes on any of this yearly or just years down the road when I begin withdrawing? Thanks for any help.
I personally prefer Idex funds because it makes it much easier for me personally for passive investing. I set it and forget it. With ETF's I have to "pull the trigger myself" and it gets in my own head.
I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!
I curiously copied and pasted her name on the web, her consulting page came up at once, she seems highly professional and well matched for the job.. thanks for putting this out !
7:26 Be careful with some ETF's, they are HEAVILY shorted by Hedge Funds, like the stocks of AMC/APE/GME/LCID/SNAP/BUD/MARA/IDEX/RDHL/AI/RUM shorted (shorts borrowed on other shorts). This means that they can go up, but when they go down, their price falls faster then other shorted ETF's. Most of the shorted ones are small, low volume ETF's, but some bigger ones have significant shorts on them. TQQQ, SOXS, QQQ, IWM, KRE, VXX, SMH, XME, XRT, are well shorted this day in June 2023. SPY, XLF, SHY, XLE, XLP, XLU, EWJ, XLB, IEF, IJR, IVV, MCHI, are currently have few shorts, but that can change. I'm not saying you can't make money strategically buying them long (I have made money on some of them in swing trades). I've noticed that mostly low volume, low priced ETF's (and penny stocks) are heavily shorted. And this is why so few go up in long trends. My advice, find indicators that show you how much a stock is shorted. My indicator changes daily, sometimes significantly if a stock is reversed split (I've seen get pounded by shorts those days). Personally I swing trade higher priced stocks off of the IBD 50 and expensive tech stocks like PANW/AVGO/MPWR/NVDA/PAYC, and FAANG stocks. They are rarely shorted heavily.
Amazing content! I have been following your videos for sometime now, consistently kicking down Wall Street doors for two years now, I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if they're any short term opportunities I can invest in
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
Reason I decided to work closely with an brokerage-adviser ever since the market got really tensed and the pressure became so much(I should be retiring in 17months) so I've had an brokerage-adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings.
ELISSE LAPARCHE EWING is my Advisor. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online
ELISSE LAPARCHE EWING is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself
Thank you so much for explaining. I have both VTSAX and VTI, which are identical to each other. Seems pointless to have both and I couldn’t make up my mind whether I should keep both or get rid of one or the other. Based on the differences you shared, I think I’ll keep the ETF and get rid of the index fund just to simplify it. I don’t have much in the index fund, just the minimum amount required to have it, so I’m not too worried about tax implications.
I was talked into investing into an index fund a few years ago, at the beginning of my investing phase (when I knew even less than I know now). The index fund is doing well, but I think ETFs are better. Should I cash out from the index fund and buy into a similar ETF, or just keep the index fund for the long haul?
Thank you! I am still thinking that to choose but you opinion confirm me that ETFs for me is better right now. Thank you for your useful content I followed 🥰
Honestly it doesn’t make difference because money will be invested in same companies 😊 I invest in Index funds because I find them less volatile and cover broader market. I am longtime investor so Index funds are better choice although I have ETFs for dividends like VHYL (VYM in US)
Volatility has nothing to do with whether you choose between ETF or index funds. ETF-versions are superior to the mutual fund equivalent by every measure.
Hey B, Great video! I’ve noticed you did a video on the fundamentals of stocks, index and etfs. Can you make a similar video on the basics of cryptocurrencies.
Index funds = track market indexes and give broad exposure (SPY, DIA, QQQ, IWM) ETFs = more industry specific (oil & gas - XOP/XLE, finance industry - XLF, real estate - IYR) but still give you broad exposure to companies within that industry
Join our EXCLUSIVE Investing Community at: ClearValueInvesting.com
GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax
Some helpful videos for you:
Index Funds Explained For Beginners: th-cam.com/video/LsHcR52gIs8/w-d-xo.html
Index Funds vs. Stock Picking: th-cam.com/video/SmXNkVuI3BA/w-d-xo.html
How to Invest in Stocks (for beginners): th-cam.com/video/dbDijzEgo7E/w-d-xo.html
Be careful with ETF's, some are shorted heavily by Hedge Funds, just as much as Hedge's short AMC/APE/GME/etc. You can see it when, over the long term, they don't go up much.
Thank you for this, I was looking at the wrong video first. I saw someone on linkedin speaking about ETF's and I was intrigued. Thank you for all your videos
It really depends on your goals. ETFs are more flexible for trading throughout the day, while index funds are more hands-off and better for long-term investors who want simplicity. Personally, I think index funds are perfect for retirement because they’re low-maintenance and have consistently performed well over time.
I see your point, but I prefer ETFs. I’ve been investing in them for a while now, and I like that I can buy or sell whenever I want during market hours. It gives me more control, especially when the market gets volatile.
That makes sense. For me, though, it’s not just about control; it’s about stability. I work with a financial advisor, Joseph Nick Cahill, who helped me build a strong retirement portfolio using a mix of index funds. His expertise made it easier to pick the right ones, and I’ve been seeing steady growth without having to monitor my portfolio constantly.
Joseph Nick Cahill? I’ve heard great things about him! Do you think he could help someone like me who’s just starting out?
Absolutely! Joseph is an expert at tailoring strategies to individual needs, whether you’re new to investing or more experienced. I’d recommend looking him up online. His credentials speak for themselves, and he’s great at explaining the pros and cons of options like ETFs and index funds so you can make the best choice for your goals.
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon!
I love ETFs. Find about 3 that are really good that you like. Buy them and keep buying them over and over and over, adding more and more shares as the years go by. Reinvest your dividends and stay the course. Practice that discipline and you will likely be very glad you did one day. The younger you are when you start, the better.
Do you have to report your dividends to irs even if you reinvest?
@@hgyt4658nah
@@hgyt4658
I think you do.
@@hgyt4658I believe you don’t have te report unless you close out your buys. Then you have to report your gains. But as long as your trade is open you don’t have to report. I could be mistaken. I’m also new and just started.
No. @@hgyt4658
Great video! I invested 40-60% of my income, over the last years, in equity index funds, ETFs and individual stocks, which allowed me to retire in my 30s!
how did you learn?
Thanks!
Thank You Brian for the information. But one critical point need to add is that majority of retirement accounts (like 401k, 403, 457) won’t allow customer to buy ETF and they have been forced to choose only index funds.
You wouldn’t want to buy ETFs in a retirement account due to the nature of retirement account being tax deferred. You want mutual funds due to the active management
@@clos3530 Index Funds are NOT actively managed. ETFs are more tax efficient; especially in taxable accounts.
@@randy74989 again their can be index mutual funds and index etfs. Both are a basket of stocks however etfs the stocks are traded less within the fund causing less capital gains.
I’ve found that most let you choose annuities or mutual funds.
@@clos3530 You can buy ETF's and stocks in an IRA so that's not why. I think it's because of the kickback your employer gets due to the index funds higher expense ratio.
Either that or people (all of our employers) are dumb af and are pissing away our retirement.
I put index funds and ETFs in Roth IRA and ETFs and Stocks in regular brokerage
I’ve been investing in ETF’s for a few years now. I have the majority in VTI which is a total index fund but I also have a small cap, mid cap, emerging market and real estate ETF for diversity. At the moment they are down a little after the events of the last couple of years but I’m confident they’ll come up again soon. Everything I’ve researched also says ETF is better than index funds
How much do you have in ETFs
Bet they’re up now 🎉
Hands down the clearest explanation I've found. Thanks for the video!
Definitely agreed
I think you meant to say mutual funds not index fund. Index funds can be both mutual funds and etfs. Index fund just means it’s a fund that follows a particular index such as s&p or russel 2000 etc.
He's confusing people with his odd use of terminology.
More specifically, he is comparing index mutual funds to exchange traded funds.
Your explanation is realistic and straight to the point. l watch several video's on how to trade in the market but haven't made any headstart because they are either taIking some gibberish or sharing their story of how they made it. And l don't want to make mistakes by taking risks on my own
The 85% of funds managers underperforming the index provided is for any single year. More impressively and importantly is to look at that figure over 5, 10, and 20 years, where it increases to 90, 97, and 99%. That makes for a more than compelling case for index investing, and how very rare the likes of Peter Lynch truly are.
Didn't realize the vast majority were that poor!
I've only sat down with 3 financial planners and 2 stockbrokers in my time to discuss investment planning and funnily enough, none tell you this fact.
@@gagnecaron658 Most of the people railing against passive investing also just happen to be active managers themselves. It is wise to look for a fiduciary CFP when starting out. I went with James Fletcher Brennan and I have had awesome experiences with him. Going from $25k to $90k in 8 months. I can say that's over-performing the index and S&P 500
That's because funds have to constantly move with the market. If you are a long term investor that just buys and holds you can easily beat the market. If you just invested in the FAANGM stocks over the past decade you would have killed any index fund.
@@stanleyfujiwara1394"you can easily beat the market"
Who to trust, Warren Buffet and Charlie Munger saying it's incredibly hard to consistently beat the market, who advocate for index funds for the vast majority of investors despite being active investors themselves, or... who are you again?
Clearest explanation I’ve heard thus far
Voo, Vit, DGRO, SCHD, Vym are all solid etfs.
Thanks for breaking it down very simply. I knew Index funds and ETFs were extremely similar but didn't know the exact details. It seems like ETFs are the way to go.
I think it needs to be clarified that the title of the video should probably be index funds vs index** ETFs. ETFs can be actively managed. Good video!
Hey b long time. You’re still out here killing it. Have a great week!!!
Long time no see Just K! It's always great to see you and I hope you have a great week as well! =)
Thank you for the video I was unaware of the tax implications of a Index Fund vs ETF and learned something new today. If you had an Index fund in a roth, the tax implications would be irrelevant right?
I've been buying a few shares of SPHD for years now. It's a monthly dividend ETF. It's nice watching your money work for you lol.
My portfolio does not just cater for dividend stock, I hold $VFIAX in my Roth IRA and $VTI ( total stock market ETF) in my taxable brokerage account, two of my largest holdings. The individual dividend stock position all compliments the index holdings.
Diversifying with $VFIAX and $VTI is smart investment. It is financial independence not dependence, it truely empowers.
Diversifying portfolio can be challenging without the right guidance. If you lack market knowledge, your best bet is to seek the expertise of an investment coach. That is how I have managed to stay afloat in the market, increaseing my portfolio over 60% in the beginning of the year. It is the best way to start up investment in my opinion.
@@HarperScott-pk6uk
I couldn't agree more.
@@HarperScott-pk6uk
Please who is the Advisor guiding you? He sound impressive.
Jason Herman Pierce is the licensed fiduciary iam working with. His cutting edge financial strategies is top notch.
This is so clear and concise. I understand now!
Thank you so much Brian. I just learned so much! You make it very easy to understand.
I prefer ETFs because you can make limit orders and stop orders unlike with normal index funds.
Found the speculator
Index fund are perfect for IRAs and 401k, ETFs are great for your regular taxable brokerage accounts.
ETFs are more work because you can't automate the buying and have to buy exact amount based on the ETF share price.
@@briandadude - depends on the brokerage you use, I can buy fractional shares of any ETFs on robinhood. Also vanguard now allows you to also purchase fractional shares of ETFs as long as you'll buying "their" ETFs.
You’re right! I see Vanguard toting it now. Thanks for the heads up
I love this, you explain this very well! Your knowledge is always comprehensive and highly valuable to the everyday investor like myself. Thank you!
One other consideration is that (at least at Vanguard) you can set up automatic investments for index funds but not ETF's
Awesome video! Best explanation of index funds and etfs I have heard so far on the internet! any thoughts on passive versus active etf?
I think passive ETFs are generally better.
I never knew that ETF is more tax efficient than Index Funds. I already have a bunch of Index Funds on my Roth IRA account. I was contemplating wether to invest in ETF or Index Funds on my taxable brokerage account. After watching this video and some of your videos on Index Funds and ETFs, I decided to go with a S&P 500 ETF on my Taxable brokerage account. That way I could sell cover call options in the future for more passive income.
ETFs are not necessarily more tax efficient at Vanguard. This is a common misconception
You shouldn’t be concerned with being tax efficient in a retirement account since all gains are tax deferred anyways. Mutual funds and etfs are the same in the sense that they are a basket of stocks however etfs are more passively managed meaning less capital gains. Mutual funds that you are buying that are index oriented towards the S&P is more active where the money managers are trying to achieve the best return possible. Within your taxable account if you are just getting started it’s best to buy A share mutual funds which pays the fee upfront but then you never pay a fee again. If you have a large amount to invest up front then you can look at etfs
It is good to have some in mutual funds.
You’re the best! I watch your videos everyday. Trying to learn stocks now. I bad very bad choices in life and don’t have any retirement saved at 54 years old. I know I’m screwed. Hoping stocks can give me enough return for my retirement in 15 years
I think you meant to compare mutual funds and ETFs. You can have an Index Mutual Fund and an Index ETF as well as actively managed versions of each.
That was one of the best comparisons I've seen of Mutual Funds vs ETFs. I personally prefer ETFs as well. You also have other options that you do not have with Mutual Funds, like Stop Loss orders.
best video I've seen on the topic. Everyone else just gives surface level information
Thank you for sharing about index fund and ETFS very clearly appreciate your video ❤ thanks.
Thank you Brian! This is exactly what I need ❤️🥰
Great job! keep going my knowledgeable friend
Thank you, I'd learned a lot about stocks especially ETF and Index Fund since I'd started last year. I wish I knew this when I was in my teen.
You and me both brother
I wish too
If you want to be simple and long term investor that doesn't want to keep looking to the price movement. Just Invest and forget. Index fund is for you. No emotions involve and save you time and effort. But if you want to be savvy and want to time the market and willing to pay for spreads then ETF is for you.
Thank you for explaining this. It is so valuable to have people who can communicate these financial things that should have been taught in schools. Thank you.
Love ETF and Index funds I learned about index funds and ETF from a wise man back in the 1990s it's something not taught in public school. I wish it was. You literally can become a millionaire in ETF and index funds. Can you make a video of how it's done
I’d be a millionaire now if I’d known about them in my 20s. 52 now and that’s depressing.
@@BecamePneuma the 🐢 🐢 always win
@@Kevinw4040 I'm in my early 20s right now
Can you put me through how I can do this 😢
@Roberta Paes I hope Brian puts a video about slow long-term mutual funds ETF index funds long-term millionaires.
I'm currently aiming to refrain from initiating new purchases to steer clear of potential pitfalls in a bear market scenario. Earning profits in stocks proves challenging when institutional investors are primarily responsible for the selling pressure. I did come across an article highlighting individuals who managed to achieve gains of up to $150,000 amidst this market downturn. However, I'm curious about your thoughts on the best stocks to consider purchasing at this juncture or placing on a watchlist?
I agree, reason I have all my invt-decisions ran through a coach on a daily-basis, it’s been 3years and counting and I’ve grown over $2million in gains, my coach's-analysis so far has steered me off losses and troubled waters and guided me make the most off major-breakthroughs in the mrkt, and esp. in this downtrend, her safe haven asset- trading, short-selling, ETF shorting skill-set are very essential..
Sure, the inv-coach that guides me is Margaret Johnson Arndt, she's popular and has quite the audience, so it shouldn't be a hassle finding her, just search her
9😅
😅
My favorites are BKLC (ETF from BNY Mellon) and FNILX (Mutual Fund from Fidelity) - both are 0.0% Net Expense ratios, and solid in returns. These are the only two you need, really.
Close competitors: SCHG, ITOT, VTI, FXAIX etc.
This was an awesome video. Thank you very much!
Thank you. Love your videos.
I will be going for an ETF.
Which ones should a beginner investor with small amounts plan to start with on a regular basis?
Thank you.
Hi Brian, im a big fan. Can u make a video on how we can prepare ourselves for either Hyperinflation or Depression or both, please. Thank u.
I like index mutual funds. I feel like I actually own the stocks in the index and my value will always match the value of the stocks. ETFs to me is more like an IOU to shares of stocks someone else own. The value of my ETF is not the value of the shares. The ETF can be slightly higher or lower than the NAV. To me it is like owning actual gold versus a document that says I have access to gold held by someone else. When the world is running fine these issues don’t matter. But when system are breaking then small details can make a difference in how much money you are getting back.
Thanks Brian, very helpful. Will you be able to make a video about ELNs, JEPI, JEPQ? Thank you again!
I really enjoy watching your videos. They’re so thorough and informative. Thank you so much!
SCHD is a solid choice
As long as you like energy and banks. But if energy goes down and banks make less from interest rates SCHD is going down.
how about dividends and tax? and auto re-investing features?
VOO is my favorite.
VOO and QQQ for me 😊
If the news was as straight up as Brian, I'd watch the news.
I really enjoy your videos, but in this case I have a quibble regarding terminology. I feel that in every instance of you saying the words "index fund" it would have been more proper for you to have used the term "mutual fund". After all, an ETF (Exchange Traded FUND) can also be based on stock indexes (SPY for the S&P 500, and QQQ for the Nasdaq 100 index, as two examples). The characteristics you ascribe to "Index Funds" in this video are true for mutual funds, but not for all Index funds (since some of them are ETFs).
Thank you! He had me confused at first, since I have etfs that are index based, and I consider them " index funds". I've always thought of the others as " mutual funds"
Plus it fits the description. Mutual funds is an a bunch of stocks mutually owned by all the investors.
Another awesome video my brotha 🫡
Always great to see you my friend!
@@clearvaluetax9382 🫡🤑🤑🤑🤑🤑
Great simple and no nonsense video. Please keep up the good work.
Excellent channel!
We appreciate all that you do!
I love you’re videos I was wonder if you can do a video on Three top index funds that pay dividends include: (VYM) Vanguard High Dividend Yield ETF. (VYMI) Vanguard International
High Dividend Yield ETF. (BND) Vanguard
Total Bond Market Index Fund. I did some research about the index funds thanks to you’re videos just wanted a second opinion. Thank you.
I need peoples opinions/insight. Brian you were reading my mind on this video. I’ve been researching etf’s vs. index’s. I’m leaning towards ETF because I plan on putting more than 6500$ a year into this vs. most index’s I’ve seen are Ira/Roth Ira. I have no plans to touch this money for at least 15 years. Will I have to pay taxes on any of this yearly or just years down the road when I begin withdrawing? Thanks for any help.
ETFs doing better than my own stock picks so yeah etf is great for passive investing
I personally prefer Idex funds because it makes it much easier for me personally for passive investing. I set it and forget it. With ETF's I have to "pull the trigger myself" and it gets in my own head.
You can set up auto contributions on most platforms.
@@Kevinw4040 I've been using vanguard. As far as I know auto invest is only available for index funds.
@@Kevinw4040 Most? Not Fidelity or Vanguard
@@FrankBurgos and you don't have to worry about bid-ask spreads with index funds either. Quite a few points not brought up in this video.
I agree
Thanks for the info.
Great video, it seems to me that an ETF > Index funds in almost all scenarios 🤷🏻♂️
I just started investing in Index Fund on February 2024
I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!
Svetlana Sarkisian Chowdhury by name. Please do your own research to see if he is suitable with your goals
I curiously copied and pasted her name on the web, her consulting page came up at once, she seems highly professional and well matched for the job.. thanks for putting this out !
😂
Ok bot
Thank you Brian for the great work!!
Appreciate the education 👍🏼🙏🏼
Thank you for the information, but I need more guides of financial advice
Love this content. I need more good stuff to drag me out of the unproductive rabbit holes I can go down : )
7:26 Be careful with some ETF's, they are HEAVILY shorted by Hedge Funds, like the stocks of AMC/APE/GME/LCID/SNAP/BUD/MARA/IDEX/RDHL/AI/RUM shorted (shorts borrowed on other shorts). This means that they can go up, but when they go down, their price falls faster then other shorted ETF's. Most of the shorted ones are small, low volume ETF's, but some bigger ones have significant shorts on them. TQQQ, SOXS, QQQ, IWM, KRE, VXX, SMH, XME, XRT, are well shorted this day in June 2023. SPY, XLF, SHY, XLE, XLP, XLU, EWJ, XLB, IEF, IJR, IVV, MCHI, are currently have few shorts, but that can change.
I'm not saying you can't make money strategically buying them long (I have made money on some of them in swing trades). I've noticed that mostly low volume, low priced ETF's (and penny stocks) are heavily shorted. And this is why so few go up in long trends.
My advice, find indicators that show you how much a stock is shorted. My indicator changes daily, sometimes significantly if a stock is reversed split (I've seen get pounded by shorts those days). Personally I swing trade higher priced stocks off of the IBD 50 and expensive tech stocks like PANW/AVGO/MPWR/NVDA/PAYC, and FAANG stocks. They are rarely shorted heavily.
Always great info! Thanks
Amazing content! I have been following your videos for sometime now, consistently kicking down Wall Street doors for two years now, I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if they're any short term opportunities I can invest in
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
Reason I decided to work closely with an brokerage-adviser ever since the market got really tensed and the pressure became so much(I should be retiring in 17months) so I've had an brokerage-adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings.
ELISSE LAPARCHE EWING is my Advisor. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online
ELISSE LAPARCHE EWING is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself
My advisor is ELISSE LAPARCHE EWING. You can easily look her up, she has years of financial market experience in the financial field.
Great detailed explanation
Thank you so much for explaining. I have both VTSAX and VTI, which are identical to each other. Seems pointless to have both and I couldn’t make up my mind whether I should keep both or get rid of one or the other. Based on the differences you shared, I think I’ll keep the ETF and get rid of the index fund just to simplify it. I don’t have much in the index fund, just the minimum amount required to have it, so I’m not too worried about tax implications.
Seeking advice at 32 with $50,000 savings-considering Microsoft/Apple or ETFs SPY/VOO.
Excellent review Brian!
Thank you very much for all your opinions n education
Single mom 🇺🇸
Very helpful thank you!👌🏽🙏🏽
Thanks i love the tax info also
I invest stocks and Index the most some ETF because ETF and stocks most likely same thing the only thing different is ETF might be little cheaper
Amazing explanation. you doing great.
Hey fella i love these videos and this channel. I am unsure how to evaluate liquidity and volume in ETFs. Most of the ones i find seem fairly low
Vanguard says that their Index Funds have a propriety mechanism that shields them from tax implications not found in ETFs?
Very good video. Thank you!
Thank you for your amazing videos! You know how to convey investing better than any other investor I’ve heard on TH-cam.
i invested in ark etf for 4 years im currently down 20% of my initial investment
Thank you for your videos.
I was talked into investing into an index fund a few years ago, at the beginning of my investing phase (when I knew even less than I know now). The index fund is doing well, but I think ETFs are better. Should I cash out from the index fund and buy into a similar ETF, or just keep the index fund for the long haul?
Great video, thanks Brian
Thank you! I am still thinking that to choose but you opinion confirm me that ETFs for me is better right now.
Thank you for your useful content I followed 🥰
Thank you Brian!
He say the expense ratio is low on both but today I saw NASDAQ ETF in Fidelily at 0.20 vs 0.05 Index Fund
hey Brian! i really appreciate your yt videos they are super valuable, when is your next upload?
I got rid of all my mutual funds and going for ETFs now on M1.
I do both..50/50
There are actively managed ETFs. In fact on Etrade, about a third of all ETFs are actively managed.
Honestly it doesn’t make difference because money will be invested in same companies 😊 I invest in Index funds because I find them less volatile and cover broader market. I am longtime investor so Index funds are better choice although I have ETFs for dividends like VHYL (VYM in US)
Volatility has nothing to do with whether you choose between ETF or index funds. ETF-versions are superior to the mutual fund equivalent by every measure.
Hey B, Great video! I’ve noticed you did a video on the fundamentals of stocks, index and etfs. Can you make a similar video on the basics of cryptocurrencies.
Here's all you need to know: don't
Good info. Thank you
Index funds = track market indexes and give broad exposure (SPY, DIA, QQQ, IWM)
ETFs = more industry specific (oil & gas - XOP/XLE, finance industry - XLF, real estate - IYR) but still give you broad exposure to companies within that industry
Hello Michael. Do you mind explaining more details to me about ETF and index I did be happy if I could
Thanks!
Brian, can you make a video on ETF and if they are all 100% backed.
I will cover that issue Justin, thank you for stopping by today!
i trust you and Stephen
As far as the difference in taxation, wouldn’t that not really matter if you have the fund in a Roth IRA???
Index funds sound more my speed ill look into them thanks.