Index Funds vs Mutual Funds vs ETFs - Which Is Best & Makes You The Most Money?
ฝัง
- เผยแพร่เมื่อ 3 ก.ค. 2024
- Mutual funds have dominated the investing market for decades. They're pushed by the major banks, and the older generation got used to using them to invest in funds that track the market as opposed to individuals stocks, which are riskier. The thing is - mutual funds usually come with high fees. The banks push mutual funds because they can take a high management fee for actively managing the fund for you.. and that's simply not necessary. You can invest in easier, more passive ways with lower fees so you can keep more of your money. And today we'll break down what those other options are - like index funds and ETFs.
0:00 Mutual funds aren't your only option
0:48 What are funds?
2:14 What are mutual funds?
5:32 What are index funds?
9:17 What are ETFs?
11:13 What should you choose?
EQ Bank - Our High Interest Savings Account - api.fintelconnect.com/t/l/614...
Wealthsimple Invest - Our Robo-Advisor Investment Platform ($50 bonus) - wealthsimple.sjv.io/VyadoM
Wealthsimple Trade - Our Favourite Stock Trading Platform ($25 bonus) - wealthsimple.sjv.io/WDXEBZ
Neo Financial - Our Cash Back Credit Card ($50 bonus) - join.neo.cc/stephandden
Simplii Financial - Our No Fee Checking Account ($350 bonus) - api.fintelconnect.com/t/l/61f...
Questrade - Low Fee Investment Platform Canada ($50 in commission free trades) - www.questrade.com/campaigns/q...
M1 Finance - Low Fee Investment Platform USA (Up to $500 free) - m1finance.8bxp97.net/DVq3gd
Borrowell - Free Credit Score Check - api.fintelconnect.com/t/l/612...
The links above are affiliate and/or referral links that provide us compensation when you use them to sign up. Thank you for supporting our channel!
Website - stephandden.com
Instagram - @stephandden
TikTok - @steph.and.den
Camera - Sony A6400 - amzn.to/2vsmDqc
Lens - Sigma 16mm - amzn.to/2vslvCV
Microphones - amzn.to/2tSa3jQ
Tripod - amzn.to/37EAibU
Small Tripod - amzn.to/2S3dWul
External Hard Drive - amzn.to/3mQzMlP
Our Music - www.epidemicsound.com/referra...
The links above are affiliate links - Steph & Den are Amazon Associates and we earn from qualifying purchases.
Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
What do you invest in? Let us know! ⬇️
Thanks for the tips! 🙌🏼
What if I got mutual funds few years ago and only have $10,000 in the account, how much $ will i lose if i sell them all?
This is one of the best videos I've seen for explaining investing basics. You give great analogies and examples, and make it easy to understand. Thanks.
This video is just what I needed. Thank you!
So glad it was helpful! 😊
Ouch Steph you're calling us out, Mutual funds (older generations) but you're correct
Ha! Yes, the calling it out but all in the sake of learning and keeping more money for yourself with lower fees 😊
Great video :) XEQT is actively managed and doesn’t track an index. Please clarify why Den himself doesn’t follow his advice to invest in index funds?
Highly appreciated your efforts, making generation financially intelligent. I'm new to investment and made notes of every single important point you both highlighted in video. ❤️ Love you both keep sharing such stuff.
Thanks so much 😊 more to come!!
Thanks 🙏🏾 guys for the insights
Are GICs some form of mutual fund too?
Thanks for watching 😊 There's a NerdWallet article called 'GICs vs. Mutual Funds: How to Choose' that should be helpful for you!
I bought a lot of individual stocks at the beginning but now I only buy in on Vanguard ETFs. Maybe I’ll sell the individual stocks in a few years so that I can build bigger positions in ETFs. But I think I will regret selling my individual stocks 10-15 years lol. I have blue chip stocks.
That's a good example of changing up your strategy over time, and debating what to do with the old strategy, ha! If they're blue chip stocks then there could be pros either way 😊
Hi I just found your channel yesterday. I want to invest at wealthsimple in passive index, but not sure how to go about doing this? I watched several of your videos already. how do you choose passive index ?
So here's a question, if the big banks sell you the mutual funds, where or how do you buy ETFs or Index funds? Are they available through your bank (Canadian here)?
You can use online broker such as Wealth simple trade. No fees whereas the big 5 Canadian banks will charge you high fees to use their platform.
Hi Steph and Den, I want to confirm if Wealth Simple offers Gic's. I have been able to open up a TFSA, FHSA and an RRSP based on the insights from your videos, and would want to know if wealth simple offers Gic's too. Thank you
We're happy to hear that 😊 It doesn't look like Wealthsimple offers GIC's at the moment! We'll look into this more, to see if they plan on offering them in the future!
Mutual Funds shields you from your own emotions. Many people do not the emotional intelligence or willpower to hold ETFs or index funds when the markets are down 30-50%. Especially during mega bear markets that can last 2 years. Ideally, if your mutual fund manager dissuades you from selling in 2001, 2008, or 2020 by keeping your money invested, then they have done their jobs. Do they deserve 2% though? I don't know, but it's hell of a lot better than selling which MANY people do even if they think they have diamond hands at the moment. Very few people can hold an index fund for 30 years straight without touching it or doing something stupid to erase their gains.
Remember it only takes one trade to ruin your gains.
Hey Steph & Den I love your videos ...I have 14 years old son i want to open an account for him a small amount so he can start learning about managing his wealth and money what would you suggest lm in Toronto ..Thanks
Thank you! 😊 That's a great idea - are you looking to open up an investment account specifically? In Canada we have trust accounts that can with investing for a minor (under age 14) - we have a video about them coming up in the next month or so!
@@stephandden thank you!! I'm looking forward to watching it