Post by ilovedolphins on Jun 4, 2013 13:31:37 GMT -5
Today I am going to start looking over mutual funds and decide if I would like to put some of my money there. Is the S & P 500 Index fund a mutual fund? Do you pay a lot of fees to own mutual funds? And would you want mutual funds for a taxable shorter term period account? Right now I just have individual stocks.
Post by 2kids10horses on Jun 4, 2013 14:29:50 GMT -5
VFINX is the ticker symbol for the Vanguard SP500 Mutual Fund that tracks the SP500. It is one of the cheapest Mutual Funds to own, if not the cheapest in terms of fees. You can buy it, I believe, in virtually any stock brokerage account.
But, if I were you, I would use the ticker SPY instead. It is an ETF (Electronic Traded Fund) that is also designed to track the SP500 index, but it is sold just like a stock. You can buy or sell it any time the market is open.
A mutual fund trades at the end of the day. To buy or sell, you have to contact the brokerage during the day and tell him of your intend to buy/sell. The actual trade will occur in the off hours after the market is closed.
I like the way the ETFs do it. Trade like a stock. The fees on SPY are also very low.
Post by 2kids10horses on Jun 4, 2013 14:33:26 GMT -5
Define "shorter term account". Generally speaking, you don't want to own stocks or mutual funds or ETFs in a "shorter term acount". (Unless you are a trader. But that's an entirely different kettle of fish.)