Vanguard Mutual Funds

Nojokur
Nojokur

I have Ten Thousand dollars and I've been told that Vanguard Admiral fund is the place to put it.

Is this a good idea Veeky Forums? Do the anons here use Vanguard?

All urls found in this thread:
https://investor.vanguard.com/investing/investment/
https://baselinescenario.com/2016/12/21/how-not-to-invest/
http://www.investopedia.com/articles/investing/110515/who-are-owners-vanguard-group.asp
Raving_Cute
Raving_Cute

@Nojokur
Pretty sure the minimum order for Admiral funds is $30k-50k or somewhere around there.
But yes, Vanguard is a good place to put your savings.

Garbage Can Lid
Garbage Can Lid

@Raving_Cute
Says 10k

King_Martha
King_Martha

@Garbage Can Lid
Just buy the etf.

Soft_member
Soft_member

Just put the money into a good vanguard fund, or spread it over a basket of funds.

The Vanguard S&P tracker, or the Vanguard developed world equity tracker. I suggest using accumulators so your dividends reinvest themselves in the fund automatically.

haveahappyday
haveahappyday

@King_Martha
What are the advantages of the ETF over the mutual fund?

JunkTop
JunkTop

@haveahappyday
Lower expense ratio with approximately the same long term returns

GoogleCat
GoogleCat

@JunkTop
Is the payoff the transaction cost to trade ETFs while mutual funds have none?

Stupidasole
Stupidasole

@King_Martha
@haveahappyday

Can someone please explain this to me, Id also like to know

Illusionz
Illusionz

@GoogleCat
@Stupidasole

ETFs are traded like shares and therefore you have to pay fees on them per trade. If you're buying a large amount you may make savings compared to the TER (ongoing fee) for investing in a fund.

If you're using dollar-cost averaging to drip-feed some money monthly into an index tracker fund, my suggestion is to just buy the fund and forget all about ETFs.

Why people here are so obsessed with ETFs instead of just regular investing in the fund, I don't know

Boy_vs_Girl
Boy_vs_Girl

@Illusionz
ETFs have lower management fees.

iluvmen
iluvmen

@Illusionz
@Boy_vs_Girl
Damn there are so many types of Mutual Funds and ETFs, how do I know which to invest in?

idontknow
idontknow

@Nojokur
Vanguard Admiral fund
There's no such thing. Admiral is the name of a class of Vanguard fund shares.

@Garbage Can Lid
Says 10k
$10k for index funds, $50k for managed funds.

@Illusionz
ETFs are traded like shares and therefore you have to pay fees on them per trade
Depends where and how you trade them. Vanguard doesn't charge commissions on their own ETFs.

@Boy_vs_Girl
ETFs have lower management fees.
Sometimes.

@iluvmen
how do I know which to invest in?
I wonder if Vanguard has any helpful information for this common question?

Protip: They do. https://investor.vanguard.com/investing/investment/

TreeEater
TreeEater

@Nojokur

Why is vanguard shilling so much on this board since the dip?

SniperGod
SniperGod

@iluvmen
If you're going for any type of index fund e.g. S&P 500, then you should just compare how much they charge in terms of basis points and buy the cheapest one.

https://baselinescenario.com/2016/12/21/how-not-to-invest/

Vanguard is the cheapest at 16bp while Fidelity is charging 77bp for essentially the same investment tool.

StonedTime
StonedTime

@TreeEater
Vanguard
shilling

http://www.investopedia.com/articles/investing/110515/who-are-owners-vanguard-group.asp

Why is Veeky Forums so stupid?

Fuzzy_Logic
Fuzzy_Logic

@StonedTime

You're jumping to ad hominem conclusions, I'm aware of Vanguard. It's still considred shilling unsolicited products. Going all in on Vanguard is way too safe for the majority of investors that frequent this board, but don't get me wrong it's a good bet. It's just that creating threads of this kind serve a more marketable self-serving purpose within a catalog rather than engaging any purposeful discussion rather than being self-promoting.

Garbage Can Lid
Garbage Can Lid

@iluvmen

how do I know which to invest in?

Well determine how you want to set up your basket of funds. Do you want to be well diversified across a number of different market types?

You can choose to go for a Vanguard Developed World Equity fund, which is an index tracker for some of the best companies in the developed world, globally.

You might choose to go for the Vanguard S&P 500, which tracks that particular american index.

You might want some exposure to the less developed markets of poorer countries, and in exchange for taking on more risk receive more reward. In which case, go for the Vanguard Emerging Markets fund.

You might want to invest in some smaller companies, and therefore the Vanguard Small-Cap fund would be a good choice.

My portfolio is 70% shares 30% funds, and of those funds I have invested in the vanguard ones named above, AND I have some money in the Vanguard UK Gilts Index (government bonds).

Decide what mix you want, what exposures you want, what risks you are willing to take. My advice is do not go for ETFs unless you are rich and buying in bulk. Vanguard funds are well managed and have low fees.

Lord_Tryzalot
Lord_Tryzalot

@Fuzzy_Logic
Don't be upset that this board introduces you to people who are much smarter than you and who do much more intelligent things with your money.

No one makes you read these threads. You're free to live in whatever shitcoin, RH, or forex thread you find comfortable, lying with other roleplayers about profits you'll never make. That you choose to open these threads at all shows how insecure you are.

BTW, it's not an ad hominem attack when its true. You are stupid, literally.

Boy_vs_Girl
Boy_vs_Girl

@Garbage Can Lid
My advice is do not go for ETFs unless you are rich and buying in bulk.
This is 100% backwards. ETFs are better for small and new traders, because the fees are usually lower than Investor class and because the holdings are more portable (and therefore more flexible).

Large and wealthy investors will want to choose funds because there are more choices, making them a better fit for complex situations.

King_Martha
King_Martha

@Boy_vs_Girl

As a long-term buy and hold investor, mutual funds are generally seen as the better choice. For people who like to trade frequently ETFs are seen as better. I don't trade

Soft_member
Soft_member

@Lord_Tryzalot

rawr

@Boy_vs_Girl

Agree

VDIGX
VYM

haveahappyday
haveahappyday

I have a 10K IRA opened VTFAX
I have a 10K Brokerage account with VTSAX

Figured S&P 500 is the way to go right now while young

Methnerd
Methnerd

@King_Martha
As a long-term buy and hold investor, mutual funds are generally seen as the better choice.
[citation missing]

There's nothing about ETFs that makes them less desirable for long-term investors. Indeed, because they can, in certain cases, offer lower fees than their equivalent funds, they are often the better choice.

@Soft_member
VDIGX
VYM
Those two investments aren't even related, other than sharing certain similarities in their investment objectives. The fund directly associated with VYM is VHDYX, which could have been discovered from a 5 second search. VDIGX is an actively managed fund, and therefore would not have an associated ETF (not to mention the fact that its closed).

Please stop posting. You're shitting up a decent thread.

JunkTop
JunkTop

@Nojokur
I would split 40% S&P 500, 30% Developed Global Equities, 20% Emerging Markets Equities, and 10% GDX (insurance against another '09).

Don't even fuck with bonds right now - terrible yields.

t. Finance user

StrangeWizard
StrangeWizard

@JunkTop
Also - I would dollar cost average and invest the money $1K at a time over the next 12 months.

haveahappyday
haveahappyday

@Raving_Cute
I have my account set up and I'm trying to turn it into a roth IRA. I don't see how to do it on the site though and they're not very responsive through messages.
did I fall for the meme yet?

SomethingNew
SomethingNew

@StrangeWizard
dollar cost average
What is this?

VisualMaster
VisualMaster

Do...ANY of you, know. How I can use Robinhood for trading and deposit the earnings into my ira WITHOUT/AVOIDING taxes or PDT flags.

BunnyJinx
BunnyJinx

here is what i learned from experience between etf and index fund

etf - buy in bulk - fee for purchase so you buy large amount at once

pro- low yearly fee
pro- can sell at any time
con-if you can't afford big share purchases, then don't bother
con-being able to sell at any time isn't relevant if you like to buy and hold

index fund - set up automatic purchases (lazy mans investing)

pro-it's easy
pro-can invest any amount without worrying about purchase fees(there isn't any)
pro-account fees are still low
con-limited to what selling price is at closing for stock market
con-purchases need a bit of time in advance to trigger an appropriate sale for that day (an hour prior to market close)
con-account fees are slightly above etf, unless you pick a scant few specific funds.

Ignoramus
Ignoramus

@SomethingNew
in a nutshell it means you don't care about the cost of purchasing the share, so, over time you buy shares when they are high and sometimes when they are low, via automatic purchase plans. This "averages" out to a fairly simple pattern that beats "timing the market" in most cases.

Sir_Gallonhead
Sir_Gallonhead

@Ignoramus
Interesting, thanks

Nojokur
Nojokur

@Fuzzy_Logic
I obviously don't frequent Veeky Forums I was simply looking for advice not a shill, thanks to everyone who helped btw

Sharpcharm
Sharpcharm

@Nojokur
Honestly, I'd never do it myself because I know I can get a Return higher than their best year's return, but if you know nothing and just don't want to be fucked by inflation, go ahead.

Set some aside and try "investing" it yourself.

Emberburn
Emberburn

@Sharpcharm
same, I make billions every day

can't believe these chumps fell for the get rich slow scheme

RavySnake
RavySnake

I have 25℅ of my net worth in vanguard index funds, 75℅ in my cold storage Bitcoin wallet

About a grand in gold and silver, a .22 rifle and plenty of bullets

I'd be buying bitcoin like a madman right now if I didn't already have a significant holding, if it drops another 100 bucks I'm heading to localbitcoins and buying, time to get greedy when the chinks and nu male cucks are panic selling

Sir_Gallonhead
Sir_Gallonhead

@Nojokur
Yeah, buy Vanguard Admiral if you want to SAIL into a sea of DEAD MONEY and a SINKING SHIP of high expense ratios that will provide no FLOTATION and will DROWN TO A BOTTOM IN AN MURKY BOTTOMLESS SEA WITH WHICH NO SAILOR WILL FIND SALVATION.

Thousand bucks are better put into a low-expense ratio ETF in an industry or utility company you like that pays good dividends. To be honest, you cannot do any real investing unless you can shove a minimum 2-3k into a single stock and you pick your stocks well then you have like 12 stocks total then you dollar-cost average them.

Everyone loves Warren Buffet until he says to read 500 pages a day.

Or you could put that 1k on robinhood on a /biz/-shilled meme stock, x10 your money then try another strategy.

Veeky Forums is pretty spot on with their meme stocks. $1000 who fucking cares, bro, go for the big risk/reward money I guess.

Gigastrength
Gigastrength

@Sharpcharm
claims to be master trader
posts chart of U.S. debt levels

TechHater
TechHater

@Gigastrength
and a very out of date chart at that

Garbage Can Lid
Garbage Can Lid

What ETFs to invest in long-term?

Illusionz
Illusionz

@Nojokur
open up a pharmacy or an asian restaurant

Methshot
Methshot

@Boy_vs_Girl
But you have to pay a commission at every trade, just like other stocks.

If you're doing monthly DCA, you're throwing away huge amounts of money on commissions/trade costs. Just do the mutual fund, and you end up saving.

Nude_Bikergirl
Nude_Bikergirl

@Garbage Can Lid
Bump

Crazy_Nice
Crazy_Nice

@Nude_Bikergirl
uwti

Spamalot
Spamalot

@Crazy_Nice
No.

VisualMaster
VisualMaster

Schwab index funds have lower fees than Vanguard Admiral funds, no?

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