Index Funds vs Mutual Funds vs ETFs (What is the difference?)

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  • Опубліковано 2 лис 2020
  • In this video, we discuss the difference between Index Funds, Mutual Funds, and ETFs, what they are, and how to easily invest in ETFs.
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КОМЕНТАРІ • 65

  • @melanievictor9521
    @melanievictor9521 3 роки тому +30

    I've listened to several of your videos and I just want to say how thankful I am that you've put this info together. You've made it easy to understand. Thank you so much!

    • @Arvabelle
      @Arvabelle  3 роки тому +3

      Glad it was helpful!

  • @dddennis1214
    @dddennis1214 2 роки тому +2

    This is an exceptional video! You’ve clarified questions that I’ve had for awhile and showing how to automate investments for an etf is priceless! Thanks so much!

  • @TonyFashionCuban
    @TonyFashionCuban 2 роки тому

    gotta watch your videos over and over to get a better understanding but this is Pure greatness !

  • @DinaTinyworld
    @DinaTinyworld 3 роки тому

    Hi Dear Arvabelle, today is my day 1 to learn from you and saved the videos by making the playlist. Thank you so much for teaching in such a nice and easy way. May God bless you.

  • @redpill4744
    @redpill4744 3 роки тому +1

    Subscribed & I'm gonna be sure& watch every single video Excellent content creator. 🏆

  • @leejmuam1
    @leejmuam1 3 роки тому +8

    This is the second video I watched of you. I like that you talk clear and slow unlike some video that is just super fast and I got lost. Keep up. Love your content.

  • @yourstruly5DA
    @yourstruly5DA 2 роки тому

    Very well explained. Keep up the good work!!!

  • @jazzyfour
    @jazzyfour 2 роки тому

    You make this real easy even for a non investor or someone with absolutely no knowledge of stock market and all these types of funds

  • @johnnyalvarez2326
    @johnnyalvarez2326 3 роки тому

    You’re are the best teacher... thank you! 🙏🙏🙏

  • @user-fj3mm4st9i
    @user-fj3mm4st9i 2 роки тому +1

    Your videos are wonderful! Very underrated

  • @allegraesposito2044
    @allegraesposito2044 3 роки тому +1

    Thanks you do a good job explaining to beginners!

  • @countdown2xstacy
    @countdown2xstacy 2 роки тому

    She is awesome.
    Great job explaining everything.

  • @maxclev1
    @maxclev1 Рік тому

    This channel is a wonder of making things intelligible to everyone....so glad I found it after months of looking at others....

  • @ScottGaul
    @ScottGaul 3 роки тому +1

    This is the first time I use an Applaud button. It was great fun. Thanks for the informative videos.

    • @Arvabelle
      @Arvabelle  3 роки тому

      Thank you I appreciate it!

  • @abdenuryassin7582
    @abdenuryassin7582 3 роки тому

    You are very good everything is Clear you can understand Easy

  • @StrongerEveryDay7
    @StrongerEveryDay7 3 роки тому +4

    Great video, you speak very clear. Please make a video of how public companies benefits being public besides the money they get during IPO. I have try to search for that subject and there are no good videos about it.

    • @Arvabelle
      @Arvabelle  3 роки тому +1

      Added to the list :)

  • @omax-sy8xp
    @omax-sy8xp 2 роки тому

    Great video. So if one can create automatic deposits into their M1 baskets which contain ETFs, is there any advantage to index fund investing over ETF at this point? Also, just how valuable do you find being able to trade ETFs real-time? I feel like if the platform only let's you execute an ETF order once a day it defeats an advantage ETFs have over index funds.

  • @APC-pm2on
    @APC-pm2on 3 роки тому +2

    Great vid, thanks!

    • @Arvabelle
      @Arvabelle  3 роки тому +1

      Thanks for watching!

  • @mikerainham
    @mikerainham 3 роки тому +5

    Most mutual funds either don’t outperform the index or the fees are too high and wipe out most of the profits made. I think you have to shop around more with mutual funds. You can’t beat the big three though, vanguard, ishares and invesco in my opinion.

    • @Arvabelle
      @Arvabelle  3 роки тому +3

      Totally agree with you!

  • @minzafar1453
    @minzafar1453 3 роки тому

    Great Job thanks

  • @lajoyperson810
    @lajoyperson810 2 роки тому +1

    You have Blessed my soul today! You know you going to Heaven rt! 😊🙌🏽

  • @doctorhorton
    @doctorhorton 3 роки тому +1

    Thank you!!

    • @Arvabelle
      @Arvabelle  3 роки тому +2

      Thanks for watching!

  • @7ajhubbell
    @7ajhubbell 2 роки тому

    Thank you.

  • @eversunnyguy
    @eversunnyguy 3 роки тому

    Awesome video. I never had time to understand what they mean in details although I traded some ETF. Now I get it. Wonder how long it takes to make a video like this with all the visuals. I wish I had a financial advisor like you 😃.

    • @Arvabelle
      @Arvabelle  3 роки тому

      Glad it was helpful!

    • @eversunnyguy
      @eversunnyguy 3 роки тому

      @@Arvabelle Please make a video on how to buy mutual funds & bonds if possible. ✌

    • @eversunnyguy
      @eversunnyguy Рік тому

      @@Arvabelle Anyway you can get rid of these bots....They keep replying spam...Destroys motivation to comment...

  • @Navidkhatri012
    @Navidkhatri012 3 роки тому

    Thank you

  • @Future_is_here1
    @Future_is_here1 3 роки тому

    I have a req please make a video how we can buy them for long time and hold them for long time specially etf

  • @swiberk
    @swiberk 2 роки тому

    index, mutual, etf...which would you fill your roth with?

  • @baseballbrock91
    @baseballbrock91 3 роки тому

    ETFs are my favorite!

  • @savoy17
    @savoy17 Рік тому

    Why are you so good.?

  • @raymondkizer1216
    @raymondkizer1216 3 роки тому

    Is going through M1 Finance better than using a brokerage like Vanguard?

    • @Arvabelle
      @Arvabelle  3 роки тому

      Depends on what you want out of the platform. I have several other videos going over the different brokerages

  • @bighands69
    @bighands69 2 роки тому

    They effectively are all flavors of a mutual fund.

  • @AminHajou
    @AminHajou 3 роки тому

    i make a td ameritrade account and they ask me to send doncuments by fax or mail , i want to know if mail mean email or regular mail ???

    • @Arvabelle
      @Arvabelle  3 роки тому

      The best option is to contact their customer service directly and they can help you out with your specific situation!

  • @HowlingFishProducts
    @HowlingFishProducts 3 роки тому +4

    There was a fly in your room

  • @rifanfaleel
    @rifanfaleel 3 роки тому

    How these mutual funds are "FCNTX
    & FOCPX", worth to invest?

    • @colin1818
      @colin1818 3 роки тому

      The former (FCNTX) looks like an incredibly forgettable fund. High expenses (.85%) as it's actively managed, high turnover (26%) means it's not good for taxable, and its returns have lagged the category in each of the 1, 3 and 5 year terms. I wouldn't bother looking much further.
      The other fund (FOCPX) is certainly more interesting. Still a very high ER (.87%) due to its active management, and exceptionally high turnover (48%) which means it's a terrible choice for taxable accounts (I'd only recommend this inside a tax protected arrangement like a 401k or IRA). But it has solid returns that have beaten the category fairly consistently. And sometimes in large numbers. Of course, past performance does not indicate future performance, but if you're interested in adding an actively managed fund you could certainly do worse.

    • @rifanfaleel
      @rifanfaleel 3 роки тому

      Thanks for explaining.

  • @reggierico
    @reggierico 3 роки тому

    I think investing in ETFs, Index Funds and Mutual Funds are all great pieces of your investment pie. What do you think of building an investment portfolio of stocks that mirror the S&P 500, with less positions, obviously? I think it is a great strategy to not only invest in the stocks of different sectors but to learn about the stock market and the process.

    • @colin1818
      @colin1818 3 роки тому +1

      I think you're not going to be nearly as diversified if you do it that way. One of the things I did early on was I contributed $50 a month to a "playing around" account. I bought individual stocks, ETFs, all kinds of stuff. No limitations. I realized my returns in that account weren't great as compared to my highly diverse main portfolio. So I eventually folded it up and rolled that money into one of my other funds. But I certainly did learn a lot (mostly what not to do).

    • @reggierico
      @reggierico 3 роки тому +2

      @@colin1818 Hi Colin, My 'learn about the stock market' account is fairly diversified. I have four Mutual Funds, six ETFs, and 38 individual stock positions. My positions in the stocks I have chosen consist of 25% Tech/IT, 15% Financials, 13% Healthcare, 12% Consumer Discretionary, 10% Industrials, 7% Consumer Staples, 6% Energy, 3% Materials, 3% Utilities, 3% Real Estate, and 3% Telecomm. This more or less is an attempt to mirror the S & P 500. I also look for stock with a minimum market capital value of $500 million, and a Beta of 1.2-1.5. Dividends are a bonus. So far, after a year and a half, my performance has been 31.6% for the last 12 months and 29.4% since inception. Of course, those performance number do include the mutual funds and ETFs, which account for about 23% of my balance. Cheers!

  • @zinmot5457
    @zinmot5457 3 роки тому

    Great video! If I was as persistent as that bug, I'd do much better in life

  • @eversunnyguy
    @eversunnyguy 3 роки тому

    If I have Ameritrade brokerage account, can I buy Index funds myself ?

    • @Arvabelle
      @Arvabelle  3 роки тому +1

      Yep!

    • @colin1818
      @colin1818 3 роки тому +1

      Make sure you don't have to pay extra trading fees to purchase funds that are outside that company. If you want a selection of Vanguard funds it's very easy to just open an account there and pay no trading fees. But if Ameritrade doesn't charge for the opportunity (I'm not familiar with their platform) then it shouldn't hurt to own those funds cross-platform.

    • @eversunnyguy
      @eversunnyguy 3 роки тому

      @@colin1818 Thanks. I can open on in Vanguard but I will another tax form 1099 which is a overhead. I was trying to all in one place. I will check if Ameritrade charges extra fees on top of what vanguard fee (which owns the index)

    • @colin1818
      @colin1818 3 роки тому +1

      @@eversunnyguy - Understandable. But I'd much rather have two 1099's (and two logins) than have to pay $5 - $10 every time I make a trade.
      Oh, and btw, Vanguard isn't the only place that has index funds obviously. I just used them as an example. They certainly are the best known (being the original indexers) but you could also consider places like Fidelity or T. Rowe (among countless others). Not sure if Ameritrade has special relationships with some outside brokerages, but it's possible they have special deals for some groups that don't exist for others.
      But I'm out of depth there. I know nothing about Ameritrade specifically.

    • @eversunnyguy
      @eversunnyguy 3 роки тому

      @@colin1818 I understand what you mean. I am let to learn more on how Ameritrade treats index funds. I will do more research. But when it comes to ETF and stocks, Ameritrade is very user friendly.

  • @tonalfon4251
    @tonalfon4251 3 роки тому

    👍🏻

  • @michaelflinn2791
    @michaelflinn2791 3 роки тому

    I Just got started investing and bought ETF's last month for $200.00 with Charles Schwab.

  • @AI-lf9qb
    @AI-lf9qb 3 роки тому

    I think your hair is rubbing on the mic

  • @melmag800
    @melmag800 Рік тому

    Slow down! Talking too fast- you have good things to say but you’re speed talking.