S&P 500 INDEX FUND BATTLE | Vanguard VFIAX vs Fidelity FXAIX | Index Funds
45 هزار بار بازدید -
5 سال پیش
-
MY EXACT Dividend Stock Portfolio
MY EXACT Dividend Stock Portfolio -- See it in M1 Finance! ||
https://m1.finance/k8qmCoo7rDQu
What is an S&P 500 Index Fund?
- invests in the 500 stocks that comprise the S&P 500 index, in market cap-weighted proportions.
- Low expense ratios | cost to maintain the fund (transaction fees, fund manager, etc)
Investing in an individual company vs. an S&P 500 index fund?
- Investing in individual companies could work out well if you pick lots of winners, LIKE AMAZON when it was new or even TESLA
- What if you pick a loser?
- An index fund lets you pick ALL of the winners AND helps you diversify the losing bets as well
Why Choose an S&P 500 index fund instead of individual companies?
- diversification
- To buy 1 share of every company would cost $71,000
- Own on e share of ETF for $298 (Vanguard) or $112 (Fidelity)
Difference between S&P 500 Index Fund Mutual Fund & ETF?
- ETF trades like a stock | price changes throughout the day and when you buy it, that’s the price you pay | value is determined by what an investor is willing to pay
- Mutual fund pooled money and value is determined by the value of the underlying assets in the fund at end of business day
Which S&P 500 Index Fund should we choose?
Vanguard VFIAX
Expense Ratio .04%
Started 11.13.2000
Minimum Investment $3,000.00
Market Returns:
Vanguard 1yr 4.22 | 3yr 13.36 | 5yr 10.80 | 10yr 13.21 | Life 6.33 (2000)
The Index 1yr 4.25 | 3yr 13.39 | 5yr 10.84 | 10yr 13.24 | Life 6.36
Returns assume dividend reinvestment
Price $298.93 as of 12.26.2019
Fidelity FXAIX
Expense Ratio .015%
Started 02.17.1988
NO MINIMUM INVESTMENT
Market Returns
Fidelity 1yr 4.24 | 3yr 13.38 | 5yr 10.83 | 10yr 13.22 | Life 10.28 (1988)
The Index 1yr 4.25 | 3yr 13.39 | 5yr 10.84 | 10yr 13.24 | Life 10.43
Returns assume dividend reinvestment
$112.32 as of 12.26.2019
Conclusion
- Very similar funds with very similar returns
- What separates them?
o Expense Ratios
o Where are your investments RIGHT NOW?
o Does your 401(k) offer both or just one?
- At the end of the day, the more important decision is not Vanguard vs. Fidelity for the BEST S&P 500 index fund, it’s that you CHOOSE TO START investing in an index fund.
5 سال پیش
در تاریخ 1398/10/10 منتشر شده
است.
45,034
بـار بازدید شده