Investing: Difference between revisions
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Revision as of 07:48, 11 August 2017
Definitions
Mutual Fund
- Professional advisers actively managing investments on behalf of others at a fee.
Index Fund
- First launched as Vanguard Group in 1976 by John C. Bogle, who believed that it was more important to stay invested. He created a fund that tracked S&P 500 (aka Vanguard 500 (VFINX)).
Exchange-traded Fund (ETF)
- Same goal as index fund: to provide investors with a benchmark return at minimal cost. Difference is that it costs more to trade index funds while ETF is often traded commission-free.
- Best to use the largest, most widely traded ETFs.