chummer
5 year old buck +
Like the tree that falls in the forest?
Stock Market is the bottom in?
- Thread starter Peplin Creek
- Start date
There's an "ignore" feature in the forum.
yoderjac
5 year old buck +
Yes and and to some, ignorance is bliss, and they find comfort in having their own views parroted back to reassure them. Others are open to having their perspectives challenged and sometimes even change them.
Bill
Administrator
Yes and and to some, ignorance is bliss, and they find comfort in having their own views parroted back to reassure them. Others are open to having their perspectives challenged and sometimes even change them.
Jack remember when QDMA was closing down and you saved a bunch of threads?
Yeah, do that.
But we’re not closing.
Index funds vs actively managed funds ... where o' where should we invest our money .. this post is intended to debunk another myth or two - because of market risk and expense of fees, the S & P 500 index is probably the safest and most rewarding place to be and actively managed funds can't sustain superior performance continuously for 1,3,5, or 10 years) - and provide some information to those who might be less familiar with the stock market. It may get a little long ....
3 S & P 500 index funds very much worth considering .. we'll start with our friend Warren Buffett's choice since he has been mentioned on this thread.
For some investors, the $3,000 investment minimum can be steep, even when investing with individual retirement funds (IRAs). Those looking for a lower-cost point of entry can check out Vanguard’s counterpart S&P 500 exchange-traded fund (ETF), VOO.
Fund inception date: Nov. 13, 2000 Assets under management: $278 billion Dividend yield: 1.54%
The $0 investment minimum for all account types helps make SWPPX a top consideration for earlier-stage investors looking to access large-cap holdings without the stress of choosing individual stocks.
Fund inception date: May 19, 1997 Assets under management: $64.6 billion Dividend yield: 1.35%
The Fidelity 500 Index Fund should appeal to any investors looking for a single core holding, and it lacks a minimum investment amount for all account types. The fund, however, has a comparatively brief performance history that could deter some who are more confident with a fund that’s been through multiple economic cycles.
Fund inception date: May 4, 2011 Assets under management: $372 billion Dividend yield: 1.55%
You might want to compare expense ratios, returns, dividends and longevity of the cfund and it's 1,3,5,7, 10 or life of the fund performance; which is most important to you?
In an earlier post we noted one study revealed that almost 40% of actively managed funds in the study beat the S & P 500 index funds. Yea but! folks would cry ... I'll bet they can't do that over a sustained period of time. Here is some evidence to the contrary .....
https://www.ii.co.uk/analysis-commentary/us-funds-have-consistently-beaten-sp-500-ii515904
Using data from FE Analytics, interactive investor crunched the numbers to see which US funds had outperformed the S&P 500 index over one, three, five and seven years (all figures to 20 April 2021). We used the Investment Association’s North American sector, which seven years ago contained 123 funds, mostly active strategies. When passive funds are stripped out, the number of active funds in the sector stood at 104.
In total, 24 funds beat the S&P 500 index over each period, on a total return basis, which includes the effect of fees.
It is worth pointing out that this does not take into account survivorship bias (another bias coming atcha). Seven years ago, there would have been more than 104 US active funds in the sector and some will have closed, while others merged.
Nonetheless, the data shows that while the market is tricky for active funds to navigate, some do consistently deliver. Of course, three in four active funds did not pass this test, so for the sector as a whole there are greater odds of investment success by simply selecting an index fund or ETF (my emphasis).
Finally, in the next post, I'll share consideration of how a Nasdaq index fund might be the better choice with little additional risk.
3 S & P 500 index funds very much worth considering .. we'll start with our friend Warren Buffett's choice since he has been mentioned on this thread.
Vanguard 500 Index Fund Admiral Shares (VFIAX) Expense Ratio 0.04% Minimum Investment $3,000 5-Year Trailing Returns 10.4%
Vanguard is one of the biggest names in the industry, and its S&P 500 index fund historically outperforms the benchmark index. Offering a dividend yield of 1.63% and a next-to-nothing expense ratio, investors could do far worse than this fund with an impressive two-decade-long performance history.For some investors, the $3,000 investment minimum can be steep, even when investing with individual retirement funds (IRAs). Those looking for a lower-cost point of entry can check out Vanguard’s counterpart S&P 500 exchange-traded fund (ETF), VOO.
Fund inception date: Nov. 13, 2000 Assets under management: $278 billion Dividend yield: 1.54%
Schwab S&P 500 Index Fund (SWPPX) Expense Ratio 0.02% Minimum Investment $0 5-Year Trailing Returns 11.79%
Charles Schwab’s S&P 500 index fund offers an expense ratio that’s only ever so slightly higher than Fidelity’s offer but comes with the benefit of more than two decades of performance history. This could be a big plus for investors who are willing to pay a bit more for a fund with a longer track record, competitive historic returns compared to the S&P 500 and a nice dividend yield.The $0 investment minimum for all account types helps make SWPPX a top consideration for earlier-stage investors looking to access large-cap holdings without the stress of choosing individual stocks.
Fund inception date: May 19, 1997 Assets under management: $64.6 billion Dividend yield: 1.35%
Fidelity 500 Index Fund (FXAIX) Expense Ratio 0.015% Minimum Investment $0 5-Year Trailing Returns 10.4%
Fidelity’s S&P 500 index fund is the least expensive offering on our list, charging a miniscule annual expense ratio of 0.015%. FXAIX posts returns that have historically outperformed its benchmark index, and it offers a dividend yield that’s pretty competitive.The Fidelity 500 Index Fund should appeal to any investors looking for a single core holding, and it lacks a minimum investment amount for all account types. The fund, however, has a comparatively brief performance history that could deter some who are more confident with a fund that’s been through multiple economic cycles.
Fund inception date: May 4, 2011 Assets under management: $372 billion Dividend yield: 1.55%
You might want to compare expense ratios, returns, dividends and longevity of the cfund and it's 1,3,5,7, 10 or life of the fund performance; which is most important to you?
In an earlier post we noted one study revealed that almost 40% of actively managed funds in the study beat the S & P 500 index funds. Yea but! folks would cry ... I'll bet they can't do that over a sustained period of time. Here is some evidence to the contrary .....
https://www.ii.co.uk/analysis-commentary/us-funds-have-consistently-beaten-sp-500-ii515904
Using data from FE Analytics, interactive investor crunched the numbers to see which US funds had outperformed the S&P 500 index over one, three, five and seven years (all figures to 20 April 2021). We used the Investment Association’s North American sector, which seven years ago contained 123 funds, mostly active strategies. When passive funds are stripped out, the number of active funds in the sector stood at 104.
In total, 24 funds beat the S&P 500 index over each period, on a total return basis, which includes the effect of fees.
It is worth pointing out that this does not take into account survivorship bias (another bias coming atcha). Seven years ago, there would have been more than 104 US active funds in the sector and some will have closed, while others merged.
Nonetheless, the data shows that while the market is tricky for active funds to navigate, some do consistently deliver. Of course, three in four active funds did not pass this test, so for the sector as a whole there are greater odds of investment success by simply selecting an index fund or ETF (my emphasis).
Finally, in the next post, I'll share consideration of how a Nasdaq index fund might be the better choice with little additional risk.
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chummer
5 year old buck +
Is that how you turned into a Libtard?Yes and and to some, ignorance is bliss, and they find comfort in having their own views parroted back to reassure them. Others are open to having their perspectives challenged and sometimes even change them.
A different kind of index fund ... one with bigger "faangs".... naw, nothing to frighten Goldilocks Which would you rather own? Why? Note: info from corporate sites
Had this laid out so nicely and it collapsed on me ... Chit! Aha, fixed it
Vanguard S & P 500 Index Fund VFIAX ...................................... YTD +6.28%
1 Yr.................... 3 Yr ................... 5 Yr ..................... 10 Yr............................................... expense ratio
-9.28................... 9.84 .................. 9.50.................... 12.64.................................................... .04
https://investor.vanguard.com/investment-products/mutual-funds/profile/vfiax#performance-fees
Top 10 holdings in Vanguard S & P 500 Index / Admiral ...... VOO / ETF fund 7 out of 10 same as Fidelity
-17.79%...........................+9.07% ........................+10.27%.....................+15.00%.............................. .03
Top 10 Holdings Symbol / Weight
AAPL APPLE INC ........... 12.16% ............................... MSFT MICROSOFT CORP.............................. 10.52%......................................... AMZN AMAZON.COM INC........... 5.04%
GOOG ALPHABET INC CL C......3.18% ............................ GOOGL ALPHABET INC CL A..................... 3.10% ........................................... TSLA TESLA INC.......................... 2.29%
NVDA NVIDIA CORP................... 2.11% ........................... META META PLATFORMS INC CL A........... 1.59% ............................................ PEP PEPSICO INC................ 1.46%
AVGO BROADCOM INC
Had this laid out so nicely and it collapsed on me ... Chit! Aha, fixed it
Vanguard S & P 500 Index Fund VFIAX ...................................... YTD +6.28%
1 Yr.................... 3 Yr ................... 5 Yr ..................... 10 Yr............................................... expense ratio
-9.28................... 9.84 .................. 9.50.................... 12.64.................................................... .04
https://investor.vanguard.com/investment-products/mutual-funds/profile/vfiax#performance-fees
Top 10 holdings in Vanguard S & P 500 Index / Admiral ...... VOO / ETF fund 7 out of 10 same as Fidelity
| Apple Inc. | 345,657,708 | $44,911,306,000 | |
MSFT | Microsoft Corp. | 172,312,316 | $41,323,939,623 |
AMZN | Amazon.com Inc. | 205,158,250 | $17,233,293,000 |
BRK.B | Berkshire Hathaway Inc. Class B | 41,647,296 | $12,864,849,734 |
GOOGL | Alphabet Inc. Class A | 138,059,335 | $12,180,975,127 |
UNH | UnitedHealth Group Inc. | 21,597,731 | $11,450,685,022 |
GOOG | Alphabet Inc. Class C | 122,399,733 | $10,860,528,309 |
JNJ | Johnson & Johnson | 60,434,637 | $10,675,778,626 |
XOM | Exxon Mobil Corp. | 95,195,592 | $10,500,073,798 |
JPM | JPMorgan Chase & |
Fidelity® NASDAQ Composite Index® Fund YTD +12.05%
Average Annual Returns
1 Yr ............................... 3 yrs ........................... 5 yr............................. 10 yr............................ expense ratioAverage Annual Returns
-17.79%...........................+9.07% ........................+10.27%.....................+15.00%.............................. .03
FNCMX - Fidelity ® NASDAQ Composite Index ® Fund | Fidelity Investments
Analyze the Fund Fidelity ® NASDAQ Composite Index ® Fund having Symbol FNCMX for type mutual-funds and perform research on other mutual funds. Learn more about mutual funds at fidelity.com.
fundresearch.fidelity.com
Top 10 Holdings Symbol / Weight
AAPL APPLE INC ........... 12.16% ............................... MSFT MICROSOFT CORP.............................. 10.52%......................................... AMZN AMAZON.COM INC........... 5.04%
GOOG ALPHABET INC CL C......3.18% ............................ GOOGL ALPHABET INC CL A..................... 3.10% ........................................... TSLA TESLA INC.......................... 2.29%
NVDA NVIDIA CORP................... 2.11% ........................... META META PLATFORMS INC CL A........... 1.59% ............................................ PEP PEPSICO INC................ 1.46%
AVGO BROADCOM INC
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hunts_with_stick
5 year old buck +
Stellantis (FCA usa) is the last oem to not have a captive until a year ago. Stellantis financial services was created at the perfect time. Auto sales are slow and they didn't buy the bad paper the last few years like other banks did. Should be a good investment as they will help the OEM sell cars and they will be profitable if run well. Plus pays dividends.
Tree Spud
5 year old buck +
jsasker007
5 year old buck +
Anyone else think that anything to do with credit/banking should do pretty well pretty soon? Seems that people are a little short on money lately but I don't think most of them will want to stop spending. I see a lot of borrowing coming in the near future.
SD51555
5 year old buck +
The central planners seem hell bent on a depression. They gave themselves all kinds of fake numbers to keep driving the screws deeper. We can't have a recession/depression unless someone actually takes a hit. The poor never had any money, so it's gonna have to be the wealthy, the middle class, and the debt class that's gonna get taken down a notch. I just have no idea what happens after the fall.
jsasker007
5 year old buck +
We met the definition of a recession months ago but then they changed the definition so we wouldn't be in a recession but now they are going to cause a recession so the country can recover from all of the senseless spending by our current government. Don't worry, that won't stop the brain dead biden from claiming he's done more for our country than all other presidents combined.
Bowsnbucks
5 year old buck +
Name-calling for some on here is your go-to response. Why????
Bowsnbucks
5 year old buck +
Correct - the whole world is unstable - not just the U.S. ------ Russian BS in Ukraine, Europe wondering what to expect next from Putin, remnants of global Covid pandemic affecting supply chains, China & N. Korea rattling sabres, etc. These are the major causes for the instability. WW III not far off, I'm thinking. It only takes 1 or 2 power-hungry, ego-driven "basspoles" to light the fire. Putin, Xi Jinping, Kim Jung Un.
Bowsnbucks
5 year old buck +
What am I missing, Oakseeds?? Are you saying you like the NASDAQ composite better?? If so ......... GREAT!!
We also have $$$ in other places beside the S&P 500 index. Extra tweaking.
bwoods11
5 year old buck +
So no credit to the instability goes to Biden ? His leadership void is why the countries are aggressive ? Russia invaded under Biden twice now. Once as Prez, and the other VP!
Tree Spud
5 year old buck +
When talking to our banker last week, he said many bank mortgage depts are really hurting for business. With mortgage rates jumping to 6.4% which may lead to more foreclosures for those that overpaid and had a variable rate note. Credit card debt is also accelerating.
Now add that inflation grew more than expected this past quarter and the White House with their head in the sand, I think the Fed is going to keep raising the prime putting more pressure banks and cost of money to borrow. We have also not fully experienced the massive spending spree the Gov't is on.
Gonna be tough for banks to extend credit to those who are already over extended debt wise.
