Active vs. Passive
The Cheapest S&P 500 Index Funds
While cheaper doesn't necessarily mean better, you will find some of the cheapest S&P 500 funds that you can buy with $10,000 or less listed below.
Index Funds vs ETFs
Which is best, index funds or ETFs? What are the differences? What are the advantages and disadvantages? Find out who should invest and learn how to choose the best passive investments and strategies.
What is Passive Investing?
What is passive investing? See examples and learn the benefits of passively-managed mutual funds and compare the passive style of investing with active management.
Efficient Markets Hypothesis (EMH)
The Efficient Market Hypothesis (EMH) essentially says that all known information about investment securities, such as stocks, is already factored into the prices of those securities. Therefore no amount of analysis can give an investor an edge over other investors. But is this hypothesis true in application? Are there certain areas of the...
Vanguard Investments is among the best and favorite of mutual fund companies for the do-it-yourself crowd. Founder Jack C. "Jack" Bogle formed the company around his idea that low-cost index funds can provide superior returns for the long-term investor.
Total Stock Market vs S&P 500
Which is best, a total stock market index or the S&P 500 Index? The answer depends upon the complimentary mutual funds or ETFs within the investor's portfolio. There are some mistakes to avoid in the total stock market index vs S&P 500 index debate. It is wise to compare and contrast the similarities and differences before investing.
Index Funds & Efficient Markets
Proponents of the Efficient Market Hypothesis (EMH) are often index fund investors. However, not all index fund investors subscribe to the EMH. There is a wise middle ground. If you like the idea of investing in index funds but still want to tweak performance or find a wise but competitive edge as an investor, there is an investment strategy...
Before You Buy an Index Fund
Before you buy an index fund, it is important to understand the definition of an index fund, the passive versus active management debate, and the difference between ETFs and mutual funds.
What Is an Index Fund?
An index fund is a type of fund that is intended to track the returns of a market index. An index fund is considered to be passively managed because the portfolio manager is replicating the index, rather than trading securities based on his or her view of the potential risk/reward characteristics of various securities.
A correction is a market trend that all active investors should know how to recognize. It is important to understand the distinction between a correction and a bear market.
10 Ways to Time the Market With Mutual Funds
If you think about it for a moment, all investing is a form of market timing, even if you consider yourself a buy-and-hold investor. As with all investment strategies and financial plans, there are wise steps you can take to find success without taking unreasonable risk.
Who Is Vanguard?
Chances are, if you are a mutual fund investor, you have come across Vanguard mutual funds. Vanguard, founded in 1975 by legendary investment industry spokesperson John Bogle, is known as a low cost, index mutual fund provider.
What Is a Passively Managed Fund?
Index funds are considered to be passively-managed funds. The manager of an index fund tries to mimic the returns of the index it follows by purchasing all -- or almost all -- of the holdings in the index. Hundreds of market indexes can be invested in via mutual funds and exchange-traded funds.
Index Funds vs. Actively-Managed Funds
The evidence shows that there are good active managers, but finding such managers in advance of their outperformance is difficult. According to Vanguard, for the 10 years leading up to 2007, the majority of actively-managed U.S. stock funds underperformed the index they were seeking to outperform.
If You Can't Beat 'em, Join 'em
According to the folks at the Motley Fool, only ten of the ten thousand actively managed mutual funds available managed to beat the S&P 500 consistently over the course of the past ten years. History tells us that very few, if any, of these funds will manage the same feat in the decade to come.
Index Funds - The Dumb Money Almost Always Wins
Joshua Kennon, Guide to Beginner's Investing at About.com, provides his take on why brilliant money managers have trouble beating index funds.
What Is The Difference Between Active and Passive Investing?
Dana Anspach, Money Over 55 Guide at About.com, gives her thoughts on the active versus passive debate.
Index & No-Loads
Index funds and no-load funds are the chosen investment type for the smart do-it-yourself investor. Learn more about index investing and no-load mutual funds.