Vanguard Index Funds for Beginners (2021)

Vanguard Index Funds and ETF's are a great product for the Average Joe. I know that is a big statement to make, but let me PROVE IT to you. Vanguard is the pioneer of the mutual fund and more importantly, they created the VERY FIRST index fund. Additionally, Vanguard is a client-owned company, which means that Vanguard does not have a profit motive. Vanguard doesn't need to worry about their stock price or generating profit for private owners. Their 30 million investors own the funds that own the company. They win when their clients win.

VANGUARD INDEX FUNDS vs. VANGUARD ACTIVELY TRADED FUNDS
Index Funds try to match the performance of a specific market benchmark (or "index") as closely as possible. Actively Traded Funds Try to outperform its benchmark. Vanguard Index Funds Buy all (or a representative sample) of the stocks or bonds in the index it's tracking. Actively Traded Funds use the portfolio manager's deep research and expertise to hand-select stocks or bonds for the fund. Vanguard Index Funds Align directly to the risks involved with the specific stock or bond market the fund tracks whereas Actively traded funds add the risk that the portfolio manager may underperform its benchmark.

VANGUARD INDEX FUNDS vs. VANGUARD ETF'S
The biggest similarity between ETFs (exchange-traded funds) and mutual funds is that they both represent professionally managed collections, or "baskets," of individual stocks or bonds. ou can buy an ETF for the price of 1 share—commonly referred to as the ETF's market price. That price could be as little as $50 or as much as a few hundred dollars, depending on the ETF. Mutual fund minimum initial investments aren't based on the fund's share price. Instead, they're a flat dollar amount. Most Vanguard mutual funds have a $3,000 minimum. Not only do ETFs provide real-time pricing, they also let you use more sophisticated order types that give you the most control over your price. With Vanguard Indexed Mutual Funds, regardless of what time of day you place your order, you'll get the same price as everyone else who bought and sold that day. That price isn't calculated until after the trading day is over. You can't make automatic investments or withdrawals into or out of ETFs whereas with Index Funds You can set up automatic investments and withdrawals into and out of mutual funds based on your preferences. Most ETFs are index funds (sometimes referred to as "passive" investments), including Vanguard's lineup of nearly 70 Vanguard index ETFs.

Vanguard S&P 500 ETF (VOO)
Invests in stocks in the S&P 500 Index, representing 500 of the largest U.S. companies. Goal is to closely track the index’s return, which is considered a gauge of overall U.S. stock returns. Offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds. More appropriate for long-term goals where your money’s growth is essential. Expense ratio as of 04/28/2020 is 0.03%.

Vanguard 500 Index Fund Admiral Shares (VFIAX)
As the industry’s first index fund for individual investors, the 500 Index Fund is a low-cost way to gain diversified exposure to the U.S. equity market. The fund offers exposure to 500 of the largest U.S. companies, which span many different industries and account for about three-fourths of the U.S. stock market’s value. The key risk for the fund is the volatility that comes with its full exposure to the stock market. Because the 500 Index Fund is broadly diversified within the large-capitalization market, it may be considered a core equity holding in a portfolio. Expense ratio as of 04/28/2020 is 0.04%. Minimum investment = $3,000.

Vanguard Total Stock Market ETF (VTI)
Seeks to track the performance of the CRSP US Total Market Index. Large-, mid-, and small-cap equity diversified across growth and value styles. Employs a passively managed, index-sampling strategy. Low expenses minimize net tracking error. Expense ratio as of 04/28/2020 is 0.03%.

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
Created in 1992, Vanguard Total Stock Market Index Fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks. Investors looking for a low-cost way to gain broad exposure to the U.S. stock market who are willing to accept the volatility that comes with stock market investing may wish to consider this fund as either a core equity holding or your only domestic stock fund.

00:00 Introduction
01:21 WHY CHOOSE VANGUARD?
05:42 What are Expense Ratios?
07:25 Vanguard Account Types
08:55 Vanguard Investment Products
09:18 Mutual Funds vs. Exchange Traded Funds (ETF)
18:28 Index Funds vs. Actively Managed Mutual Funds
21:24 Browsing Vanguard Investment Options
25:07 Vanguard Sector Funds & ETF's
26:57 Vanguard Index Funds & ETF's
32:28 Vanguard S&P 500 and Total Stock Market

Видео Vanguard Index Funds for Beginners (2021) канала The Average Joe Investor