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Almost the same thing... the ETF with the ticker SPY. When I researched this years ago, I concluded the costs were less expensive than any S&P 500 mutual find
by kangnkodos 9y ago
Almost the same thing... the ETF with the ticker SPY.
When I researched this years ago, I concluded the costs were less expensive than any S&P 500 mutual find I could find. Not sure if that's still true or not.
- actsasbuffoon 9y agoYou can also invest directly into an index fund rather than going through an ETF. Depending on your situation, both have pros/cons. Many companies offer index funds, though Vanguard's seem particularly popular (possibly because they invented index funds, IIRC).
- jjeaff 9y agoThey are also popular because the company is owned by the share holders of their funds. So huge dividends and salaries aren't going to employees or shareholders.
- swarnie_ 9y agoSPXL if you want to play with leverage. Wait to see if the commander tweets 5 minutes before markets open before buying in on any given day, it will help.
- jjeaff 9y agoVOO fees are 0.05% vs 0.09 for spy. But of course fees are effectively much higher if you are paying transaction fees. But vfiax (vanguard) or swppx (schwabb) can't be beat (.04 and .03) when it comes to fees. And it is pretty common for brokers to offer free Mutual fund trades or you can get an account directly with those brokers and trade for free.
- astura 9y agoDon't forget iShares too, which are usually traded commission free for many brokers (I know for Fidelity and USAA...). IVV has an expense ratio of 0.04% and they have other really low cost ETFs too.
- jjeaff 9y agoI think there are some additional internal costs with ETFs that cause it to have lower returns over time. At least, I remember seeing some comparison graphs to that effect.