to be used for any questions related to Index funds. The question should clearly state the Index in question [Nasdaq,LSE] or the fund house in question. If the question is generic with the intention to understand how the funds work, then a specific example should be quoted to get a better answer.
Questions tagged [index-fund]
481 questions
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At what point do index funds become unreliable?
Passively investing in exchange-traded funds that track some broad index is often recommended for private investors that don't have the time or expertise for active investment. In particular, index funds are recommended over actively managed funds,…
henning no longer feeds AI
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Are Index Funds really as good as "experts" claim?
I use the quotations because generally the people touting these the most (John Bogle) are also ones selling the index funds. Being biased doesn't mean they're wrong, but it does mean they may not be telling the whole truth.
I understand the idea…
dcg1000
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Why don’t index-tracking mutual funds corner themselves?
A lot of advice claims that low-cost index-tracking mutual funds are ideal. It sounds like a nice idea, at first. But then I thought: what if everyone did that?
Indexes are reconstituted from time time, meaning that index-tracking fund managers…
hmakholm left over Monica
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Why do people claim that it's hard to outperform the S&P 500? It has only increased in value by ~1.5x in the past 5 years
Whereas companies like Google, Facebook, Netflix, Amazon, Apple have all increased anywhere from 3x-6x in value in the past 5 years. If you just stuck with those companies, you would have easily beaten the S&P 500's 1.5x gains.
Then there are some…
Eric Gumba
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Will the popularity of index funds cause a pricing bubble in the stocks that make up an index?
I can't help but notice the popularity of index mutual funds over actively managed funds. I think all the arguments are sound, but I have one worry:
Index funds are run by buying the stocks listed in a particular index, with the goal being to get…
Scott Whitlock
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Why does this author claim that buying index funds will decrease index funds returns?
I'm reading The Beginners Investing Book by Matthew Kratter and to quote him directly:
In the old days, very few people practiced indexing. That guaranteed
that it would provide pretty good returns. These days, anywhere from
50-70% of the money in…
Linkin
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Is it wise to keep some savings in a cash account to protect against a long term market crash?
My wife and I have half our savings in a low risk diversified account (WealthFront - mostly bonds, some stocks). We have the other half in a high interest cash savings account (0.35% interest). Our thinking is that, if there's a long term market…
Mary Rose Cook
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What differentiates index funds and ETFs?
Many companies offer index funds and ETFs. If two funds or ETFs track the same fund, what differentiates the two? Is it common for one index fund to outperform another? How can this happen if the funds/ETFs are tracking the same index?
I found this…
Ryan Michela
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If low-cost index funds are considered the best investment, why are there so many high-cost, managed funds?
The general consensus is that the single best indicator of a fund's future performance is the its expense ratio (source). If you look for more than 5 minutes online you discover the Bogleheads approach to investing; the Motley Fool's discourse on…
Dang Khoa
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Why do banks give small APR loans
I apologize if this has been asked before....
If you can reasonably expect to profit 6% or more from index funds and there are other ways to make a reasonably safe 6% on the stock market....
Why do banks loan money to people (for housing, cars,…
xyious
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Do index funds really have double-digit percents annual return rates?
For the first time in my life I'm looking into where to put my money and I came across index funds. I find it very suspicious that:
whatever index fund I come across, the history never goes back to before 2010.
the return rates are super high.
For…
UTF-8
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Advice for college student: Should I hire a financial adviser or just invest in index funds?
I just started college and after calculating the cost for my degree I calculated that I have $50,000 that I wont need until after college. I think that the best think for me to do with that money is to invest. A close family friend of mine…
HanMah
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How does dividend work in an index fund?
What does a manager do with the dividends of the companies in the index? Does he reinvest the dividends in the company in which he got the dividends or will just choose whichever company suits him? How will this affect the investor?
Finally, how…
Louis
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Investing in S&P500 Index Fund from India
I am an Indian Citizen residing in India. Can I invest in an S&P500 Index fund while residing in India?
Sucheta Saha
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Is there any benefit to investing in an index fund?
Does an index fund comprise of stocks that mimic the index? So when the index is altered to include new players/exclude old ones, the fund also adjusts? But how can this be, since index funds are not actively managed?
And if the index fund just…
Victor123
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