VFAIX
VANGUARD FINANCIALS INDEX FUND ADMIRAL SHARES
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"Diversification" means spreading out your investments between more companies/sectors. VFAIX (and other S&P500 funds) are already diversified between the hundreds of companies in the S&P500. Adding VGT or something similar wouldn't change much, for example you can look at the top holdings of both FXAIX (NVDA, APPL, MSFT, AMZN, & AVGO) and compare it to VGT (NVDA, APPL, MSFT, AVGO, & PLTR) and you'll see a lot of similarities... so it wouldn't add any diversification.
If you want to have an exact gain to the penny, then sell X shares at Y price. Why bother breaking it into two transactions? You think you're going to get closer to the absolute maximum of the tax bracket if you do 80% in one transaction and 20% in the other? Last year, only 88.15% of VFAIX and 95.9% of VOO's full-year divs were qualified.
If you have a job, look into investing in VOO (of VFAIX which is the mutual fund version of VOO) in a Roth IRA.
Yes very much so. The hard part is knowing when to sell though. I’m up over 1300% since I got most shares around $9-10. I do think they will continue to rise but at some point I should probably just call it a victory and move all the principle plus gains to VTI or VFAIX. I would hate myself if I continued to hold and it drops below $80 or some shit.
I didn't completely sell out, that's just not my style, but I definitely sold chunks of my NVIDIA, COIN, and MSFT positions that I now regret. Also sold some VFAIX that I regret. It's important to learn from your mistakes. A lot of that got piled into the TSLZ ETF though, so its still too early to really know how it will play out.
I would choose one of VTI or VOO, I like to keep things very simple. VTI and VOO have practically the same return and VOO makes up about 88% of VTI. There is very little added diversification in holding both, more funds does not necessarily mean more diversification. Also I tend to lump sum my investing money, back testing shows that lump summing tended to have better outcomes more ofter. I would keep what ever you want as an emergency fund in the money market and then deploy the rest into my investments. At your age there is nothing wrong with just going 100% VTI, VOO, OR VFAIX. This is assuming this is long term investing and not money for shorter term goals.
You look up standard advice for "windfall" investing. Does he have an emergency fund? That's a good place to start, figure 3-6mo expenses into a HYSA or money fund that's invested in treasuries (such as Vanguard or Fidelity's) that currently gives around 4%. If he's thinking about moving out in the next year or two, he might want to put 1st/last/deposit in there, too. Putting part into safety makes the market risk with the rest more tolerable, especially if he needed to use some in the next 5-10 years. Markets always have risks nd right now they are very volatile which can be stressful for new investors. Don't invest in the market money you need in the next few years. It's a long game. If he has earned income and files taxes, he should consider setting up a (Roth) IRA and contributing to that so the earnings grow tax-free. If he can't contribute to an IRA or still has some money left over, put that into a taxable brokerage account (Fidelity or Vanguard). An index fund is an easy way to be extremely diversified and match the market returns. Three popular choices are S&P500 (VFAIX, FXAIX are index funds; VOO, SPY, etc are EFTs-- choose the index fund offered by your brokerage with the lowest expense ratio), Total US market, or total world market. Choose one and use if for both the IRA and taxable brokerage account. Set and forget. Going forward, you can both start educating yourself on investing.
Ha. Same thing kind of happened to me. Co-worker was getting money into his SEP-IRA and not investing it. Was one of those people that puts money into the account and doesn't know they have to pick something to invest it in. So mid July I told him to just put it into VFAIX since it is better than doing nothing. I swear, the stock hit the fucking peak that day on July 15th, and then dropped 8% in August. I was like "dude, just wait it out, trust me!" and then it bounced back a month later. I felt like an asshole. Never give investing advice.
that's not a bad allocation. but IMO, drop all the US percentages by 5% each, and boost the international allocations. US stocks have been dominant for a long time but it won't last forever. I'd also agree with swapping out the large growth for VFAIX. lower fee and better diversified.
You'll need to decide what your investing goal is and if/when you'll need access to these funds. If you're trying to get ahead of the game on retirement savings then a ROTH IRA is for you. You can put up to $7k each year into that. You can't deduct the money you put in on your taxes (unlike a Traditional IRA) but any of the growth is Tax Free, so when you start withdrawing from this account when you're at least 59.5 years old you don't pay any taxes on that money. The other cool thing is if you need to access some money from this account (and it really should be a last resort) you can take out any money you contributed (not any growth) tax and penalty free as long as it's been in there for 5 years. There also are exemptions to withdraw gains from a ROTH IRA for first time homebuyers or for education expenses.... but keep in mind these exemptions could always be changed in the future by congress. If you're trying to invest to eventually spend the money over the next 5, 10, 15 years you can open a standard brokerage account. That is a taxable account, so if you invest 2k in ABC stock and it grows to 10k, once you sell it that 8k is taxable as what's called a Capital Gain. So when you file your taxes for that year you will have to claim it and pay tax on it. Depending on any other savings you have you may need to withdraw money from your investment account to pay these taxes so keep that in mind. The best advice i can give is try to max out your ROTH IRA each year, then if you still have $ to invest put it into a brokerage account. If you ever work at a company that offers a 401k retirement plan those work by you investing a % of your salary (ex 5%). They typically have a corporate match where they will match your contribution up to a limit (ex 5%) - so that's free $. If you get access to that benefit you change your investment order to 401k up to the corporate match, ROTH IRA up to $7k/ yr, any remaining into the cash brokerage. Once you decide on the account type you need to decide on what to invest in. Stay away from r/wallstreetbets Best advice is to invest in an S&P 500 index Mutual Fund. VFAIX is a good one and it simply tracks the S&P 500 index (which is an index of 500 top companies). This insulates you from investing in something like Enron which gets bloated up and then crashes to 0. Mutual funds are great because all you have to do is transfer money into your account, and the broker will automatically buy as many shares as it can (even if it's not a whole share). You can set this on autopilot by investing $x per week/month etc and watch your savings grow. last thing... time in the market is better than timing the market. Don't panic if you see a sell off, even if it's lasting a year and you continue to see your investment worth less than you paid for it. Just stick to the plan and keep buying at those lower prices, it will recover. Markets operate in cycles so just stay the course. Hope that is helpful!
Consolidated all my accounts from Vanguard, T Rowe Price, and Schwab at Schwab. The Vanguard and T Rowe accounts were (are) Roth IRA's I set up 20+ years ago and forgot about. Just started funding my Roth again (now at Schwab) and I see that when I purchase shares, Schwab is charging me a "transaction fee", which, this time around, amounted to about 10% of the cost of the transaction total. Question: Because I've never sold shares in a Roth account, I'm unsure of the implications of how Long Term Cap Gains work. Since I'll be purchasing shares monthly, is it tax-free to dump all my VFAIX shares and buy SWPPX or something similar w/out a transaction fee? Do I have to stick to a mutual fund or are ETFs also fair game? Sorry for the newb questions & THANK YOU!
VFAIX should honestly be a winner under Trump’s administration. Most of his policies should be beneficial to banks/hedge funds/private equity since its loosening regulations and lowering cost of capital.
I can tell you with near 100% certainty that your broker is not calculating wash sales correctly with respect to substantially identical securities. Calculating a wash sale adjustment for substantially identical securities is nearly impossible to do in an automated fashion because of how vague the rules are. The IRS does expect taxpayers to track their own adjustments though. For example, if you have multiple broker accounts you’d need to track wash sales across those accounts because it’s impossible for your brokers to do so. The good news there is that for the average investor that means there’s near zero risk of criminal tax fraud by doing it as long as it’s not blatant. Criminal tax fraud requires the taxpayer to knowingly avoid taxes. If you sold the VOO then bought VFAIX in one account and the 1099 didn’t mark it as a wash sales, you’re good from a criminal perspective. If you sold the VOO and then bought the VFAIX at a different broker that looks a bit more shady.
Put 150K in cash, a money market fund. Take out major positions in index funds. I like VFAIX and FXIAX. Take out smaller positions in a tech fund (FSELX) and an energy fund (FUSTX). Do a 70/30 split, adjusting for your risk tolerance. Do this if you think the economy still has room for growth.
Don’t try to play the market because it will always win. Let the folks who do this for a living make you money. Invesco’s PowerShares, QQQ; Vanguard VFAIX; Berkshire Hathaway BRK/B. Sit-back and let them make you money.
I have about 10k I need to invest and am looking at doing 60% VTI, 10% VXUS, 10% BND, 10% VGT, 5% GOOGL, 5% NVDA. Early 30s, US, Employed, 90k/yr~, No specific objectives, just need it not sitting around doing nothing, Time horizon: pretty much planning on leaving it there unless I have a need or emergency, Risk tolerance: medium low. I mostly want a good set of etfs I don’t have to worry about much, with just a little stock to keep it spicy, Other investments: Currently just my 401k which is about 60% VFAIX, 10% bonds, and 30% mixed between mid/small/int Debt: no large debt, just mortgage and car. Additional: I know just enough about investing to screw it up lol
Fair enough, if cost basis is 30 he underperformed the SPY by a bit. I'm not sure why Google wants to tell me $23 for 2019 VFAIX price
Yea, thats assuming he bought the vast majority of his shares in 2019 and sat on it.. And I just checked the chart- VFAIX didn’t go below 30 a single day in 2019 so Im not sure where you got your $23 from. The lowest I could find is 40 cents above 30 in January. The fact is he would have made far more money if he invested in the same intervals into SPY instead of VFAIX no matter how you put it.
That’s what Im saying.. That he DIDN’T actually outperform the market. Who refers to ROI annually if he keeps putting money into it over time anyways? And VFAIX is up approximately 60% since 2019… Im pretty sure this dude just did 65/5 to get to his “average” 13%…
You literally would have made more (by a large margin) if you put money into SPY instead of VFAIX… What are you trying to get at here?
How else would you interpret "average ROI" in the context of outperforming the market? Also VFAIX was like $23 depending on when he bought in 2019 and it's over $50 now.
Since when did ‘ROI’ refer to annual only? lol Even if he didn’t DCA and go all in on VFAIX it still underperformed SPY… so where did he get your supposed compound returns from?
This is the way. Started investing in VFAIX in Dec 2019, term ROI is 15.7%
Good catch! VFAIX vs VFIAX
I would make sure you are looking at the correct symbol. VFAIX is .10, VFIAX is .04
Hi everyone I have a question about brokerages and moving around some money for my mother (64) She has north of 13k in a merrill edge account that her deceased father gave her, it was invested in some pretty underwhelming fixed income lord abbett funds that I recently sold the positions on to just stop the bleeding. As I understand it, it is a taxable account not an IRA. At the same time she has over 80k in a fidelity IRA account which I help her with and is mostly invested in FALBX and VFAIX and is doing well. She has retired years ago,. My mother wants to reinvest the cash from the merrill lynch in something better, my question is would it be best to withdraw the money in the edge account and allocate the max contribution into her fidelity IRA and then max out again Jan 2nd? Or just invest in a VOO in the merrill edge. It doesnt seem to me to make sense keeping it in a plain old brokerage if she can throw it in her IRA. A bit of background my father (67) still works makes 200k a year and his own 401k but will retire in the next 2 years so this is her nest egg if things went bad for our family she just wants to make consistent returns but can afford to be in securities and not just bonds or some fixed income. Thanks in advance for any insight.
You can buy VOO for $510 a share instead of VFAIX. Or SPLG for $65 a share which is the same thing.
You have a lot of accounts spread across different providers for some reason. It is a lot easier to keep track of if consolidate and apply a good strategy. The wealthfront and schwab automated portfolio thing is pretty good for that. That said, at your age, I'd put that $40k into your Fidelity account's FXAIX which is their fund tracking the S&P500 index and is basically the same thing as Vanguard's VOO or equivalent mutual fun VFAIX. That will give you good growth prospects at what I consider a reasonable risk level. If you want lower risk and lower return, I'd add to your position in one of your existing wealthfront or schwab automated portfolios. I'd also consider dumping the nationwide mutual funds and moving that money as described above.
>For the "Bogleheads": VTSAX, VFAIX, or THREE FUND? Pinned to the top of this subreddit: Single fund portfolios: https://www.reddit.com/r/Bogleheads/comments/tg1az5/should_i_invest_in_x_index_fund_a_simple_faq/ >(Followed JL Collins advice in Simple Path to Wealth) I find his reasoning flawed and poorly supported. >My justification for 100% Total US market allocation is that we can weather the storm over the years since we are so young. >Is this naive? Would we be better served if we changed to: The only type of risk that US only is, is single country risk, which is an *uncompensated* risk: one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ >Uncompensated risk is very different; it is the risk specific to an individual company, sector, **or country.** >Would we be better served if we changed to: 1) 100% VFIAX S&P 500 would mean missing out on the area in the US with the best historical and expected future long term returns: smaller caps (especially the value corner). * https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index - invest in the S&P 500, but don't end there (this covers info on both the US extended market and ex-US markets) [a total US market fund combines S&P 500 + extended market into one] >2)60% VTSAX, 30% VTIAX, 10% BND There we go. >3) Some other recommendation I am not thinking of? Target date (index), target allocation (index), or VT/VTWAX can all work as well, depending on how you want to handle bonds and if you'd prefer a fixed US to ex-US or one that drifts with global market cap weight changes.
I am familiar with 529 plans. Looking for general advice for choosing funds. 40M, with ~23k in a Vanguard L2050 Roth. I’d like to grow this money as much as possible for the next 18-20 years and use it to pay for daughter’s (2yo) college. Current budget is very tight but I’m able to contribute $125 per PP. I get paid every two weeks. What fund(s) should I look into? Would 100% VFAIX be good or is this a bad idea? Should I consider multiple funds? Again, goal is to be aggressive or make as much as possible! Thank you!
What you do in finance would be informative. If you work in wealth management, you have a vested interest in preserving your customer base, so your advice to “speak to a professional” is akin to “I’d love to manage your money for you”. I have about half of my funds with a fiduciary in a SMA (separately managed account). Net of fees, it has underperformed VFAIX by 16.29% since Dec 2019 (39.05% growth vs 55.33%). The great majority of that difference can be traced back to portfolio management fees. I read Bogle’s book this past weekend (among several on my shelf, it’s not the first and last finance book I’ve read), and he described my experience and performance with professional wealth managers and actively managed mutual funds with precision. I’m in the same boat as OP, in process of shifting to indexing.
VFAIX is a S$P 500 Index fund or some people that trade use the ETF VOO or VOOG
Let's look at this with a bit of context. I'll start with the following assumptions * $23,000 contributions every year for the next 35 years (current 2024 max) * SP500 lifetime growth of 10.30% * FXAIX w/er 0.0015% = 10.2985% * SP500 fund w/er 0.17% = 10.13% After 35 years, VFAIX will have grown to $8,306,490 and the near equivalent SP500 fund has grown to $8,275,486, so the difference is $31,005 or 0.375%. Does it really matter?
VFAIX very well May be an asset you can purchase but that would be my recommendation. Depending on your age the difference would be more aggression in the mix. Ie little to know bonds.
Hello together /r/investing **My question is:** what ETF funds are available to purchase as a resident in Germany? I've decided to start my journey in investments. I'm a software engineer, 28F from Germany. I'm a total noob and need to spend some time learning basics. I think it might take a lot of time because I need to cover personal finance as well. So, during the learning time, I want to put my money in some ETFs just to be ahead of the inflation. It's not a big amount, around 30k euros, but I still don't want to lose them. I opened an account on Interactive Brokers.I tried to buy VOO Arca and VFAIX Fundserv, but IB doesn't allow to buy it because those funds don't have KiD in German language.
The answer as to why VTIVX hasn’t performed is in the composition of the fund. https://investor.vanguard.com/investment-products/mutual-funds/profile/vtivx#portfolio-composition Funds Vanguard Total Stock Market Index Fund Institutional Plus Shares - 51.60% Vanguard Total International Stock Index Fund Investor Shares - 33.50% Vanguard Total Bond Market II Index Fund - 10.50% Vanguard Total International Bond II Index Fund - 4.40% First, it is a fund of funds meaning it is overly diversified and any time you overly diversify you tend to water down your returns. Second, a major part of the fund is invested in international stocks which have far under performed the S&P 500 over the past 20 years. Third, and most importantly, it is invested in bonds and no one should have been invested in bonds while interest rates were virtually zero as that completely ignored the massive interest rate risks to bonds, as interest rates rise bonds fall in value. What you have in VTIVX is essentially an MPT based portfolio and sadly MPT basically hasn’t worked since its creation primarily due to underperformance of international stocks. You are correct to question your decision to invest in VTIVX. You should continue to monitor your investments and adjust as necessary. Currently MPT shows no signs of improvement but that doesn’t mean MPT won’t work again in the future. While bonds were a terrible investment up to a year or two ago, they are now a more reasonable investment as interest rate risks are much lower. If I were you I would consider doing two things. First I would consider moving out of VTIVX and into something like VFAIX, VTSAX, or some other fund which tracks the S&P 500. I would also consider allocating some of the portfolio to bonds depending on what you personally believe will happen with interest rates over the next 6 months. If you think interest rates will stay where they are or fall then investing in bonds is a pretty good idea, if you think interest rates will rise then steer clear of bonds. Whatever you do, you must keep your eyes on your investments because times do change sometimes and what works today won’t work as well at some point in the future.
If I were you I'd open a brokerage account with Fidelity or Schwab. Open a Roth IRA and dump that money into that account and evey few months buy a few shares of VOO (ETF) or VFAIX (mutual fund) They both mimic the S&P 500 Both outperform inflation by a long shot. Just remember you can not withdraw without penalty until 59.5. There may be exemptions but do some research.
I’d just stick with VFAIX personally. That’ll likely outperform SCHD anyway.
auto investing for ETFs is tricky, more complicated than reddit seems to understand. what time of day do you want to buy? what bid/ask spread are you prepared to pay when liquidity is low? also when you have VFAIX why are you adding more large US company stocks? why not international or small cap US?
VFAIX has a higher ER than VOO. The best S&P500 fund in terms of ER is FXAIX at 0.02%. VOO is 0.03% and VFIAX is 0.04%. The key is return since return includes the ER but return will likely follow the ER. Using portfolio visualizer shows the returns to only be slightly different between these with FXAIX highest followed by VOO and then VFIAX with the difference being similar to the difference in ER.
>I called today to cancel my managed plan and will manage it myself by allocating all of the funds into VFAIX don't put all your money into things with the best recent performance. the S&P 500 was nearly flat from 2000-2012, while US smaller company stocks and international stocks performed much better. from 1995 to 2016, US small cap and mid cap stocks returned 2x and 3x the S&P 500. https://contrarianoutlook.com/wp-content/uploads/2016/09/SPY-Midcap-Smallcap-20yr-Chart.png international stocks beat US stocks every year from 1983-1989, and 2002-2007. https://www.blackrock.com/us/financial-professionals/literature/investor-education/why-bother-with-international-stocks.pdf
For the 24.37% of your 401k invested in VFAIX, it's just a fund that tracks the S&P500 index. Determine your long-term and short-term goals and your tolerance for risk. This will help you develop a more targeted investment strategy. Consider diversifying your portfolio into different asset classes such as stocks, digital currencies, real estate, etc. This helps reduce risk and balance returns.
My investments were split across 1. Wellesley admiral 2. VFAIX 3. Vanguard Emerging market 4. vanguard developing market 5. Vanguard extended market 6. Vanguard target retirement 2050. The 5 year returns for each fund respectively are 1. -9%, 2. 50.5%, 3. -4%, 4. 3.3%, 5. 16.46% and 6. 10%. How the fuck a manager watched that lack of returns against the S&P500 and continued to invest in all of the noise except the target retirement fund is beyond me.
I’ve decided to diversify more of my assets from SWPXX into VOO, SPY, FXAIX, VFAIX, etc. this way I’m more protected from economic downturns
Don't do betterment. They're a robo adviser. They'll take a .25% cut. Open an account with vanguard. Buy VFAIX it's a mutual fund (same difference) that mirrors the SP500. If you don't like vanguard, open at fidelity or TD, and buy SPY (same idea, that's an ETF but same difference, also mirrors sp500). Each of those have expense ratios ("management fees") of 0.03% or 0.04%. All betterment is going to do is the exact same thing (invest it into an SP500 fund) AND take 0.25% off the top (or there abouts It's been a while since I cared to know what they're up to).
>VFAIX and VOO track different indexes You flipped the "I" and "A". VFAIX is financials, but the VFIAX that was mentioned in your quote is S&P 500, the same as VOO.
> I should have said I’m looking for differences in a passive index fund that mirror the S&P 500 vs a passive ETF that does the same. Lower capital gains. There are almost no advantages of an classic open ended mutual fund vs. an ETF when a corresponding mutual fund exists. > I’m trying to understand the difference in say tickers VFIAX vs. VOO just as an example if that helps. VFAIX and VOO track different indexes. Let's make this easier. VFH is the corresponding ETF to VFAIX. The distinction between VFH and VFAIX is as above. Now onto VFH vs. VOO. VFH tracks the [MSCI US IMI Financials 25/50 Index](https://www.msci.com/documents/10199/e15adc0b-2395-4603-8e44-b0eac481e270#:~:text=The%20MSCI%20US%20IMI%20Financials%2025%2F50%20Index%20is,RICs%2C%20under%20the%20current%20US%20Internal%20Revenue%20Code.) Essentially this is a cap weighted index of **financial sector** stocks not all sectors. It is a constrained index that has two limits: * no stock can be more than 25% of the index * no more than 50% of the index can ever be in stocks with weightings above 5%. So it tilts a bit smaller than a pure cap weighted index. VOO tracks the SP500 which represents about 500 of the 600 biggest stocks in the USA drawing from all sectors: [Index methodology](https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-us-indices.pdf)
I would not recommend learning to day trade or speculate individual stocks. Just buy a share, or fraction of a share, of an index mutual fund that has the lowest expense ratio you can find. Not sure if being in Canada means you want US market investments or what kinds tax laws you have around investments as a Canadian. So sharing from US citizen invested in US markets perspective. You have a few things going for you that could put you way, way ahead of the vast majority of people in the long run. 1. Starting a commitment to investing as young as possible is the #1 thing older people wish they had done instead of blowing it all in their youth. 2. You have plenty of time to absorb several cyclical cycles (even crashes) and watch you net worth climb again. In the end you'll be fine. If I were a student again (again as a US citizen), Id open a Roth IRA and put whatever cash I could spare into it and buy an index fund tracking the SP 500 (FXAIX and VFAIX are examples). Roth IRAs are funded with after tax money but the earnings are tax free here if withdrawn at retirement age. Ur limited in how much you can add to your account annually (currently $6k) but its a great tax sheltered vehicle. Then if I was employed somewhere offering a 401K, Id also contribute just enough to get whatever employer matching they offer. Then not a dime more. Again, invest in the cheapest broad stock market index fund available. I am a strong believer that tax deferred investments like the 401K are NOT in the best interest of people (they are more expensive and perform worse than something you could buy yourself + deferring taxes is like saving you a finger now only to take your arms later). So get whatever free money you can get out of your 401K then each additional penny goes into the next part. Once I maxed out the Roth IRA for the year and made my 401K investments to get any free money out if it, then Id open a regular old taxable brokerage account. Any additional funds I have to invest each year would go into there with more what? You said it.. index funds. As your income grows in life have a commitment to putting a sizable % of each incremental dollar you earn into those what? Yes, index funds again. The withdrawal strategies for these types of accounts would easily keep one's net taxes on earnings during retirement below 10% (at least for a US citizen). So go for it, buy an index fund share and just hold it forever. Start making it a practice to find and invest more and more. And when everyone is freaking out about the economy and the stock market isnt doing well... buy as much as you can cause its an index fund... the whole economy isnt goint to go bankrupt; just certain businesses. I wish I had this interest in my 20s. I started at 30 and planning to retire at 50, but I couldve been done at 40 had I started in my 20s. Good luck! Remember, its an endurance contest amongst turtles; dont think of it any other way than small, incremental, and slow.
the problem with 100% VFAIX is that it's the S&P 500 and - the S&P 500 has been flat for roughly 40 of the past 90 years. about 1929-1943, from 1968-1982 and from 2000-2012. - the S&P 400, and S&P 600, have both outperformed the S&P 500 over some very long periods of time. - bonds beat the S&P 500 from 2000-2020. - an international index beat the S&P 500 45% of the time from 1969-2022. you always want some small company stocks, international stocks and bonds in the investments.
FXAIX (Fidelity S&P500) has a 0.015% expense ratio while VFAIX (Vanguard S&P500) has a 0.04% expense ratio so actually Fidelity’s index funds are cheaper in my experience
100k \-15k Vehicle Debt 85k Leverage 50k for a down payment along with my existing cash 35k 10k Vanguard Index Fund VFAIX 25k for home reno/emergency fund ​ if you own your home and carry no other debt, I would purchase 80-90k in VFAIX or another index fund you like
I think what's an interesting extension of OPs question is: Let's up it to a trillionaire. If the index fund holds 5 billion shares of AAPL and, for the sake of argument, nothing else. (BTW, google says there are 15,892,723,000 shares of Apple outstanding). The trillionaire's order comes in. Can the mutual fund manager increase their holdings of Apple enough? **What do they do when there's no longer enough shares of the underlying assets to buy?** (Note, I know my numbers don't work in any way, shape, or form. I don't know how much in invested in VFAIX and didn't do the math on how much 5 billion shares of Apple would be valued at. Just wanting to play out the scenario in bold)
>ETFs have drastically lower fees, right? not necessarily. index ETFs and mutual funds generally have comparable fees. VOO has a .03% fee, but FXAIX has a .02% fee and VFAIX has a .04% fee. all three track the S&P 500. FNILX is practically a S&P 500 fund but has zero fee. with an ETF you always pay the 'bid-ask spread' between buyer's and seller's price. no spread with mutual funds.
You own $3,300 in the VFAIX fund which is a basket of financial services companies (banks, insurance companies, etc.). The price of that investment will rise and fall every day. At the end of each day the price is reset based on a number of factors. That price is called the NAV. In addition to owning $3300 worth of VFAIX you have $1500 in cash that you do - if you wanted to - invest in any stock, ETF, mutual fund, bond, CD or other investment vehicle. Investment vehicles carry different risk and can offer very different levels of reward. Meaning some things are safe but won’t earn you much return — e.g. cash. You’ll earn a tiny amount of interest but you’re never at risk of losing anything. By contrast you could invest that $1500 in a speculative stock where the outcome could be huge financial gains on your investment or you could lose it all.
Hi everyone, 22 year old with zero clue about investing who just got access to a TDameritrade account. From my understanding I’ve got an individual investing account with a value of roughly 5k. I am new to all of this so I am trying to understand what my options are and what the true value of this account is and learn some of the investment vocabulary on the account. First question: what is positions vs cash? Account states 3,300 in positions (VFAIX) and 1500 in cash. Is that “cash” value money that is invested or just money that is sitting in the account waiting? 2. What is margin? 3. If given the values above I wanted to withdraw all possible funds from the account today what would the value be? I would really appreciate any help here as I am just trying to learn! TD has not been particularly helpful yet.
You can get an Index Fund as either an ETF or a Mutual Fund. Example: VOO and VFIAX are the same Vanguard S&p500 index. They are simply traded differently. The ETF VOO trades throughout the day - in real time. On an exchange. The Mutual fund VFAIX trades one once - at the end of the day. It's the same fund. I hold mutual funds in my 401k and ETF's in my brokerage account. I see no point holding ETF's in a retirement account, as ETF's are designed for day-trading, and I don't plan to doing any day-trading with my 401k. ​ Mutual funds can be purchased fractionally. Mutual funds also allow for automatic investing, while ETF's do not. ​ Fidelity's FXAIX and Vanguard's VFAIX are mutual funds that track the S&P 500 index. I recommend those
Both ETFs and mutual funds can be actively managed. The ARK Innovation ETF (ARKK) managed by Cathie Wood is a well-known managed ETF. Both ETFs and mutual funds can be actively managed. Both ETFs and mutual funds can be passively managed index funds. VFAIX and SWPPX are passively managed S&P 500 index mutual funds that have lower expenses than the VOO S&P 500 index ETF. Both ETFs and mutual funds can be set and forget. The main differences between ETFs and mutual funds for me are: 1. You can set limit and stop buy/sell orders for ETFs but not mutual funds 2. It is very easy to buy fractional shares of mutual funds for as little as $1. That makes it easier to truly dollar cost average (DCA).
1. Me (34) and my wife (30) live in the USA 2. I am employed making 105k/year after bonuses - regular salary is \~88.5k/year. My wife is a student with no income but will begin working in July of 2022 making about 60k/year 3. Time horizon would be 20+ years for retirement savings and 5-10 years to save for investment real-estate 4. We can tolerate risk 5. Current holdings: 1. Vanguard LifeStrategy Growth fund, not contributing anything 2. Hartford Global Impact A, not contributing anything 3. Vanguard FTSE Developed Markets (VEA), not contributing anything 4. Vanguard S&P 500 Index ETF (VOO), not contributing anything 5. Fidelity Roth 401k - contributing 5% with a 100% match up to 4% 1. Fidelity Growth Fund - Large cap, 23% 2. Fidelity Developing & Emerging Markets Fund, 18.45% 3. Fidelity value fund, 17.93% 4. Fidelity equity fund, 11.18% 5. Fidelity bond fund, 9.57% 6. Fidelity international fund, 8.87% 7. Fidelity small cap fund, 5.14% 8. Fidelity mid cap fund, 4.94% 6. Texas Instruments, ESPP with a 15% discount, contributing 1% of salary 7. Johnson & Johnson, DRIP account contributing $75/month 8. 3M, DRIP account contributing $50/month 9. Health savings account, contributing 200/month not currently investing 6. Only large debt is our mortgage which we pay $2000/month on and have \~286k left on the loan at 3.625% interest. Cars are paid for and we have no credit card debt. My question is about our current investments. our primary investment vehicle i my ROTH 401k. Do our current holdings and contributions look ok? Once my wife begins working I will max out my ROTH 401k, ESPP, and HSA. I would like to use my HSA to invest in something, but I have no idea what. my first thought would be FXAIX but I already have VOO. Is it ok to more than one S&P 500 index fund? Should I drop VOO for the for VFAIX? My wife and I want to have a solid investment base before we start saving for investment properties. Also, the funds available in my ROTH 401k are very good so I don't believe we need to think about an IRA. Any advice will be greatly appreciated. Thanks!
since i was curious, [here’s some info i found comparing FXAIX and VFAIX](https://www.investopedia.com/articles/markets/101415/4-best-sp-500-index-funds.asp).
>I have a chase investing account and can't do partial shares can you invest in mutual funds? there's little practical difference between SPY and FXAIX or VFAIX or any other index tracking the S&P 500.