6 ms·

What are returns like on "boring index-tracking ETFs"?

by doctorbellario 9y ago

SEJeff 9y ago
Ask Jack Bogle... I'm sure he'll have a lesson or 5 for you.
- StavrosK 9y ago
  What's the lesson?
  - zenlikethat 9y ago
    Index funds (over time) tend to beat most professional money managers, much less amateur speculators.
    - deleted 9y ago
      [deleted]
    - pedrocr 9y ago
      It's worse than that. Over any period of time index funds beat the average actively invested money because they have the exact same returns and less fees: https://web.stanford.edu/~wfsharpe/art/active/active.htm https://web.stanford.edu/~wfsharpe/art/active/active.htm
      - eru 9y ago
        Less fees and transaction costs.
- nommm-nommm 9y ago
  If someone is unfamiliar with the return on index funds they are unlikely to know who Jack Bogle is or what his lessons are.
- recursive 9y ago
  I got here: http://johncbogle.com/wordpress/ http://johncbogle.com/wordpress/ But I'm not sure where to go to find information about the returns.
  - Kerrick 9y ago
    That's John Bogle. You're looking for Jack Bogle. https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_...
    - recursive 9y ago
      Apparently, they're the same person. https://www.bogleheads.org/wiki/John_Bogle https://www.bogleheads.org/wiki/John_Bogle > John C. (Jack) Bogle, after whom the Bogleheads® are named, is founder of the Vanguard Group and creator of the world's first retail index mutual fund.
nommm-nommm 9y ago
http://performance.morningstar.com/funds/etf/total-returns.action?t=ITOT&region=USA&culture=en_US http://performance.morningstar.com/funds/etf/total-returns.a...
aggie 9y ago
Long term (10+ year) returns have historically been around 7%. Obviously that can vary quite a bit year-to-year.
webninja 9y ago
A historical returns of the stock market calculator: http://www.moneychimp.com/features/market_cagr.htm http://www.moneychimp.com/features/market_cagr.htm
TuringNYC 9y ago
Yes, index funds are less risky than undiversified individual assets but they can me much worse than boring. Depending on the index you track, it can fall 80%. Consider the Asia ETFs in 2008, brutal.

What are returns like on "boring index-tracking ETFs"?

SEJeff 9y ago

Ask Jack Bogle... I'm sure he'll have a lesson or 5 for you.

StavrosK 9y ago
What's the lesson?
- zenlikethat 9y ago
  Index funds (over time) tend to beat most professional money managers, much less amateur speculators.
  - deleted 9y ago
    [deleted]
  - pedrocr 9y ago
    It's worse than that. Over any period of time index funds beat the average actively invested money because they have the exact same returns and less fees: https://web.stanford.edu/~wfsharpe/art/active/active.htm https://web.stanford.edu/~wfsharpe/art/active/active.htm
    - eru 9y ago
      Less fees and transaction costs.
nommm-nommm 9y ago
If someone is unfamiliar with the return on index funds they are unlikely to know who Jack Bogle is or what his lessons are.
recursive 9y ago
I got here: http://johncbogle.com/wordpress/ http://johncbogle.com/wordpress/ But I'm not sure where to go to find information about the returns.
- Kerrick 9y ago
  That's John Bogle. You're looking for Jack Bogle. https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_...
  - recursive 9y ago
    Apparently, they're the same person. https://www.bogleheads.org/wiki/John_Bogle https://www.bogleheads.org/wiki/John_Bogle > John C. (Jack) Bogle, after whom the Bogleheads® are named, is founder of the Vanguard Group and creator of the world's first retail index mutual fund.

nommm-nommm 9y ago

http://performance.morningstar.com/funds/etf/total-returns.action?t=ITOT&region=USA&culture=en_US http://performance.morningstar.com/funds/etf/total-returns.a...

aggie 9y ago

Long term (10+ year) returns have historically been around 7%. Obviously that can vary quite a bit year-to-year.

webninja 9y ago

A historical returns of the stock market calculator: http://www.moneychimp.com/features/market_cagr.htm http://www.moneychimp.com/features/market_cagr.htm

TuringNYC 9y ago

Yes, index funds are less risky than undiversified individual assets but they can me much worse than boring. Depending on the index you track, it can fall 80%. Consider the Asia ETFs in 2008, brutal.