|Bid||0.00 x 1100|
|Ask||0.00 x 1100|
|Day's Range||253.81 - 255.00|
|52 Week Range||214.83 - 270.67|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.04%|
If you're new to investing, one of the best ways you can dip your toe into the water is to buy a mutual fund or exchange-traded fund (ETF) that invests in all 505 of the S&P 500's stocks. Your first question: What is the S&P 500? Your second question: How come there are 505 stocks, not 500? Both are relatively painless questions to answer.First, the S&P 500 represents 500 of the largest and most established companies listed on a U.S. stock exchange. You're likely familiar with many of the index's constituents. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe S&P 500's largest company by market capitalization [share price multiplied by number of shares outstanding] is Microsoft (NASDAQ:MSFT) at $825 billion. * 10 Hot Stocks Leading the Market's Blitz Higher Warren Buffett, one of the most successful investors of all time, has said that most investors should simplify their investments to deliver better long-term returns. He put it this way in his 2013 annual letter to shareholders:"My advice [to the trustee] couldn't be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) …I believe the trust's long-term results from this policy will be superior to those attained by most investors -- whether pension funds, institutions or individuals -- who employ high-fee managers."Low costs and few moving parts wins the game in the long run.The second question requires much less legwork. There are 505 stocks in the index because some of the companies, such as Buffett's Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), have more than one class of shares, which means Berkshire Hathaway counts as two holdings, not one. Simple, right?Now that I've answered the two questions, I better cut to the chase by providing readers with a short list of ways to buy S&P 500 stocks. Option 1 - An Oldie But a Goodie The oldest ETF in the U.S. -- launched in 1993 -- is the SPDR S&P 500 ETF (NYSEARCA:SPY). It also happens to be the biggest with $256 billion in assets. However, remember what Buffett said about low-cost funds. It's not the cheapest of the ETFs tracking the S&P 500 (it charges 9 cents for every $1,000 you invest,) but it is the most popular. Option 2 - The Low-Cost OptionsTwo of the next three-largest U.S.-listed ETFs also invest in every one of the S&P 500 stocks -- the Vanguard S&P 500 ETF (NYSEARCA:VOO) has $101.4 billion in assets and charges 0.04% as does the iShares Core S&P 500 ETF (NYSEARCA:IVV) with $157.6 billion in assets. These each give you plenty of choice when it comes to capturing a significant portion of American equities. Option 3 - Buy Buffett's StockBerkshire Hathaway has often been compared to a very large mutual fund because it owns $200 billion worth of publicly traded stocks, most of them part of the S&P 500.However, in addition to the equities, you get a small piece of hundreds of private companies operating in all kinds of different sectors of the economy. The best part: Buffett won't charge you annual fees to own his fund. He'll just deliver long-term returns that handily beat the S&P 500. From 1965 to 2017, Berkshire Hathaway stock's generated a compound annual growth rate of 20.9%, more than double the S&P 500. The Verdict on Investing in S&P 500 StocksAs Warren Buffett suggests, you ought to do it early and often and at the lowest cost possible.These three options plus mutual funds that track the S&P 500 index (they're slightly more expensive than ETFs) will get the job done while letting you sleep easier at night. As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post 3 Different Ways for Newcomers to Buy S&P 500 Stocks appeared first on InvestorPlace.
Larry Puglia explains how he has outperformed benchmarks while running the T. Rowe Price Blue Chip Growth Fund for more than 25 years.
This easy-to-use app helps its users squirrel away every extra penny and invest it wisely. Here's how it works and what it costs to use.
January’s Jobs Report: Analysts' Expectations(Continued from Prior Part)US job additions in DecemberThe US (IVV) (QQQ) non-farm payrolls were at 312,000 for December, which beat economists’ consensus of 180,000 by a huge margin. The major gains
January’s Jobs Report: Analysts' Expectations(Continued from Prior Part)Wage growth in JanuaryWage growth will likely be the most closely watched component of the US (VOO) jobs report. While the other components of the jobs report have shown a
Why Analysts Are Bullish on Microsoft ahead of Q2 EarningsMicrosoft’s second-quarter earningsMicrosoft (MSFT), a leading player in the enterprise software space, is scheduled to announce its second-quarter earnings on January 30, 2019, after the
Responding to Rising RisksVanEck TOM BUTCHER: I’m here today with David Schassler who heads up VanEck’s Portfolio and Risk Solutions or PARS group. David, thanks so much for joining me today. DAVID SCHASSLER: Tom, thank you very much. BUTCHER:
Over the last decade, the ETF emerged as one of the most popular investment vehicles. “ETF” stands for exchange-traded fund, which is a type of security that tracks an index, bonds, commodities, currencies, ...
A Look into IBM's Strategic Imperatives ahead of Q4 EarningsIBM’s strategic imperatives Although IBM’s legacy mainframes continued to see strong demand, it is the company’s Strategic Imperatives businesses growth that’s generating optimism
The investment community lost a giant Wednesday when John Bogle, the founder of Vanguard, passed away at 89. Bogle kick-started the index fund revolution, introducing the first such fund, which created an industry that now has $1.5 trillion in assets under management. "Mr. Bogle had legendary status in the American investment community, largely because of two towering achievements: He introduced the first index mutual fund for investors and, in the face of skeptics, stood behind the concept until it gained widespread acceptance; and he drove down costs across the mutual fund industry by ceaselessly campaigning in the interests of investors. Vanguard, the company he founded to embody his philosophy, is now one of the largest investment management firms in the world," according to Vanguard. Bogle, a native Pennsylvanian and Princeton alumnus, did more for everyday investors than any fund manager, investor or Wall Street maven before or after him. Whether or not index fund investors own Vanguard funds, they are benefiting from Bogle's efforts to lower costs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Known as the "Vanguard effect" in index fund circles, the firm's emphasis on keeping costs low so investors can keep more of their returns is a main reason why so many rival fund issuers offer low fees on index funds and exchange traded funds (ETFs). Today, Vanguard manages over $5 trillion in assets and the average annual fee of 0.11% on its funds is a big reason why the non-profit company is one of the world's largest asset managers. * 7 Retail Stocks to Buy for the Rise of Menswear Here are seven Vanguard index funds that Bogle himself probably would have liked. ### Vanguard 500 Index Fund -- Admiral Shares (VFIAX) Expense Ratio: 0.04% per year, or $4 on a $10,000 investment The Vanguard 500 Index Fund -- Admiral Shares (MUTF:VFIAX), an S&P 500 tracking fund, is the index fund that started it all. Today, Vanguard's S&P 500 index funds and ETFs have over $400 billion in combined assets under management, according to issuer data. To get the benefit of this index fund's low fee, investors are required to make a minimum investment of $3,000. Minimum investments are required on many Vanguard index funds, but that can be avoided by embracing the comparable ETFs, of which Vanguard has many to go along with its index funds. The Vanguard S&P 500 ETF (NYSEARCA:VOO), one of the world's largest ETFs, has no minimum investment requirement and shares that 0.04% expense ratio. VFIAX holds 509 stocks with a median market value of $99.1 billion. ### Vanguard Total Stock Market Index -- Admiral Shares (VTSAX) Expense Ratio: 0.04% While the aforementioned VFIAX started the index fund revolution, the Vanguard Total Stock Market Index - Admiral Shares (MUTF:VTSAX) is a juggernaut in its own right. With its low fee and massive roster of holdings, this index fund and its ETF equivalent are perfect ideas for novice investors. * 7 Stocks to Buy as the Dollar Weakens VTSAX's low annual fee makes it 96% cheaper than the average fees of competing strategies, a trait that likely explains the whopping $672.2 billion in assets across those index fund's various share classes. Speaking of big, VTSAX holds over 3,500 domestic stock, putting the "broad" in broad market fund. ### Vanguard Total Bond Market -- Admiral Shares (VBTLX) Expense Ratio: 0.05% Index funds helped democratize fixed-income investing and the Vanguard Total Bond Market -- Admiral Shares (MUTF:VBTLX) is one of the leaders of that charge. Thanks to index funds and passive ETFs, investors can access broad baskets of bonds at reasonable costs. VBTLX is a domestically focused fund, and its asset mix usually somewhere around 70% U.S. government debt and 30% investment-grade, domestic corporate bonds. Home to nearly 8,600 bonds, one of the largest rosters in the fixed income index fund space, VBTLX features little in the way of credit risk as essentially all of its holdings carry investment-grade ratings. This index fund's holdings have an average maturity of 8.3 years and an average duration of 5.9 years. VBTLX has a 12-month yield of 2.8%. ### Vanguard Value Index Fund -- Admiral Shares (VVIAX) Expense Ratio: 0.05% Among index funds focusing on a particular investment factor, value funds are among the most popular. The Vanguard Value Index Fund -- Admiral Shares (MUTF:VVIAX) offers cost-efficient exposure to a broad basket of U.S. large caps with the value designation. Factor funds usually carry higher fees than cap-weighted counterparts, but VVIAX is one of the cheaper value funds on the market. This index fund holds 344 stocks with a median market capitalization of $89.3 billion. Its price-to-earnings ratio of 14.3x reflects a modest discount to the S&P 500 and other broad domestic equity benchmarks. * 10 Growth Stocks With the Future Written All Over Them As is the case with many value index funds, this Vanguard fund is heavily allocated to the financial services sector. That sector accounts for 23.5% of VVIAX's weight. The healthcare and technology sectors combine for over 28% of the fund's weight. ### Vanguard Mid-Cap Index Fund -- Admiral Shares (VIMAX) Expense Ratio: 0.05% Index funds have their roots in domestic large caps, but the industry evolved to bring cost-effective exposure to smaller stocks to investors. That includes mid caps and the Vanguard Mid-Cap Index Fund -- Admiral Shares (MUTF:VIMAX), which is cheaper than 95% of competing funds, according to Vanguard data. Long-term investors should consider mid caps. "The S&P Mid-Cap Index is the winner for 25-year total return, by a mile. The mid-caps haven't taken home the prize for any of the other periods. However, they have beaten the S&P 500 for all the listed periods of 10 years or more," according to MarketWatch. VIMAX holds 366 stocks with a median market value of $12.5 billion, which is above the $10 billion mark that signals the official definition of mid-cap territory. This index fund devotes 20.5% of its weight to financial stocks while industrial and technology names combine for over 34%. ### Vanguard Short-Term Corporate Bond Index Fund -- Admiral Shares (VSCSX) Expense Ratio: 0.07% When the Federal Reserve raise interest rates, as it did four times last year, investors often move to shorter duration bonds and the related index funds. The issue with trimming interest rate risk is that investors' income streams can be hit by that move. One way of ameliorating that scenario is with short-term corporate bond index funds, such as the Vanguard Short-Term Corporate Bond Index Fund -- Admiral Shares (MUTF:VSCSX). VSCSX yields 2.7% and 90% cheaper than competing short-term corporate bonds funds. * 8 Dividend Stocks With Growth on the Horizon Credit risk is minimal with this index fund as almost 87% of VSCSX's 2,200-plus holdings are rated A or BBB. The index has an average duration of 2.7 years. ### Vanguard Total World Stock Index Fund -- Investor Shares (VTWSX) Expense Ratio: 0.19% Prior to the advent of index funds, investors looking for international equity exposure were forced to stock pick or embrace high-fee, actively managed mutual funds. Today, the universe of international equity index funds is chock full of funds appropriate for rookie and cost-conscious investors alike. The Vanguard Total World Stock Index Fund -- Investor Shares (MUTF:VTWSX) is one of the leading index funds in that group. As its name implies, VTWSX is a total market fund, meaning it offers exposure to a broad swath of regions and stocks. VTWSX, which holds over 8,100 stocks, has some emerging markets exposure to the tune of 9.9%, but the fund is dominated by developed markets. While VTWSX uses different terminology, it is essentially a global index fund, meaning its largest geographic exposure is the U.S. Japan, the U.K. and China combine for almost 17% of the fund's weight. Global and international index funds usually feature higher fees than counterparts focusing on domestic stocks, but VTWSX is still less expensive than 83% of rival funds. As of this writing, Todd Shriber did not own any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post The Bogle Way: 7 Index Funds for Passive Investors appeared first on InvestorPlace.
Vanguard founder John C. Bogle, who changed investing forever for ordinary Americans, wrote a dozen books over his lifetime, selling over 1.1 million copies worldwide.
Investing icon Warren Buffett advises investors to stash 90% of their money in a Standard & Poor's 500-stock index fund and keep the rest in short-term government bonds. That's a good start for investors who want to keep things simple, but it limits your investments to large U.S. companies. So today, we'll show you how the best Vanguard index funds can add more portfolio diversification while still keeping your strategy simple. Rather than help to pay the huge salaries of high-powered fund managers, investors can buy index funds, which simply aim to mirror the returns of their benchmark indexes. Why? Because roughly two-thirds of actively managed funds fail to match or beat their indexes. It's not that fund managers are stupid or incompetent. It's because picking mispriced stocks is incredibly difficult. It's not surprising that the average fund lags its benchmark index by just about what it charges investors in annual expenses (a little more than 1%). Vanguard - whose founder, John Bogle, just passed away - invented the index fund and still does the best job operating them. Vanguard index fund fees are always, if not the lowest, within a few basis points (a basis point is one one-hundredth of a percent) of the lowest. What's more, its managers are skilled at running index funds, so they don't stray far from the performance of the index they track - a job that actually sounds a lot easier than it is. Here are six of the best Vanguard index funds you can use to build a solid portfolio. This includes a general suggestion for a percentage of your assets to allocate to each one. And if you prefer exchange-traded funds to mutual funds, that's OK too - I'll offer up the ETF version of each fund. ### SEE ALSO: The 27 Best Mutual Funds in 401(k) Retirement Plans
John "Jack" Bogle, the founder of index investment pioneer Vanguard Group Inc, changed Wall Street by convincing millions to turn away from mutual funds that actively pick stocks, but his legacy will also be shaped by the unintended consequences of index funds. Bogle, who died of cancer at age 89 on Wednesday, saved investors billions of dollars by devising and championing low-fee funds that tracked markets instead of trying to beat them. As recently as 2007, index funds and ETFs accounted for only 15 percent of long-term fund assets, according to the Investment Company Institute.
The founder of the index mutual fund has passed away. John “Jack” Bogle is survived by his wife, Eve, and six children. A product of Depression Era struggles, Bogle began his career with Wellington Fund where he pioneered the strategy of focusing on a single fund.
Bulls versus Bears: Who Will Rule the Stock Markets in 2019?(Continued from Prior Part)Bank of America’s targetBank of America’s equity and quantitative strategist, Savita Subramanian, expects a decline in the S&P 500 (SPY) in
Bulls versus Bears: Who Will Rule the Stock Markets in 2019?(Continued from Prior Part)J.P. Morgan is bullish on SPYJ.P. Morgan (JPM) has one of the most bullish views on Wall Street about the stock market outlook in 2019. J.P. Morgan’s US equity
S&P 500 exchange traded funds, such as the SPDR S&P 500 ETF (SPY) , iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) , and other broad market ETFs are soaring to start 2019. Smaller stocks are participating as well as highlighted by the early 2019 showings for ETFs, such as the SPDR Mid-Cap 400 (MDY) and the iShares Core S&P Small-Cap ETF (IJR) , which tracks the S&P Small-Cap 600 Index. “In the first seven trading days of 2019, the S&P 500 returned 3.6%, its 12th best start on record since 1928 and best since 2003,” said S&P Dow Jones Indices in a recent note.
China’s central bank, the People’s Bank of China (or PBoC), announced on January 4, 2019, that it will cut the reserve requirement ratio (or RRR) of Chinese (FXI) banks by 50 basis points on January 15 and a further 50 basis points on January 25. To stimulate demand in the slowing economy, China’s central bank cut the RRR four times in 2019. Prior to the central bank’s decision to cut the RRR, China’s premier Li Keqiang has urged the central bank to cut the reserve requirements.
Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? (Continued from Prior Part) ## Gundlach on US federal debt As reported by Reuters, Jeffrey Gundlach called the ballooning US (SPY) (VOO) federal government debt “a completely horrific situation.” In 2018, total US debt increased by $1.4 trillion, far more than the ~$900 billion budget deficit. Gundlach also said that the United States could be at a “tipping point” in a “debt-compounding cycle.” He asked, “Are we growing at all or is it all just the increase in debt?” ## Ballooning interest costs Moreover, Gundlach cited data provided by the CBO (Congressional Budget Office), which reflect rising interest costs for the US government. The CBO expects debt to reach 3.7% of GDP by 2035 from ~1.4% in 2015. ## Corporate leverage is also bad Gundlach is also focused on corporate leverage and said that there is a significant risk of downgrades in the BBB space as leverage has risen to near record highs. Gundlach used a historical leverage ratio analysis to highlight how large a portion of BBB rated bonds (BND) would be junk (JNK) right now. As reported by Yahoo finance, Gundlach said, “Actually, 45% of the entire investment grade bond market would be rated junk right now … based on leverage ratios. Forty-five percent.” Gundlach has also stated that while downgrades have started to happen, even more should have happened already. He thus expects a wave of downgrades to come. Continue to Next Part Browse this series on Market Realist: * Part 1 - Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? * Part 2 - Jeffrey Gundlach: How to Survive the Market Zigzags in 2019 * Part 3 - Gundlach: Junk Bond Market Is Flashing Yellow on Recession
Following one of the worst December performances on record, U.S. stocks are rallying to start 2019 and an overlooked sentiment signal could be indicating more upside is on the way for the S&P 500 and the corresponding exchange traded funds. SPY, the world's largest ETF, seeks to provide investment results that correspond generally to the price and yield performance of the S&P 500 Index. “For the first time in nearly three years, the weekly Investors Intelligence (II) survey showed more market newsletters were bearish on stocks than bullish,” according to Schaeffer's Investment Research.
In 2018, Yahoo Finance talked to women from all across the business world, and they all had great advice about how to approach your money, your career and your life.