Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Frequently Asked Questions About ETFs and Index Funds
    Frequently Asked Questions About ETFs and Index Funds
    Frequently Asked Questions About ETFs and Index Funds
    Ebook40 pages33 minutes

    Frequently Asked Questions About ETFs and Index Funds

    By Dale Maley

    ()

    Read preview

    About this ebook

    This short story explains both ETFs and Index Funds using a question and answer format. It will teach you the basics of using these low cost investments as part of your investment portfolio.

    LanguageEnglish
    PublisherDale Maley
    Release dateJul 10, 2010
    ISBN9781452393506
    Frequently Asked Questions About ETFs and Index Funds
    Author

    Dale Maley

    Dale C. Maley is the author of the 19999 book Index Mutual Funds: How to Simplify Your Financial Life and Beat the Pros.He is also a contributing author to Chapter 18 Seeking Help from Professionals in the 2009 book The Bogleheads Guide to Retirement Planning.He is a very successful private investor who has been a student of Financial Planning and Investing for over 30 years. He was trained as an engineer at the University of Illinois and has been a practicing engineer for 32 years. His accomplishments as an engineer include the granting of 16 U.S. Patents and authorship of over 500 professional technical papers. He is also a member of the International Society of Automotive Engineers and the Society of Manufacturing Engineers.He also has earned an MBA (Masters Degree in Business Administration) degree from Illinois State University. His background in mathematics, engineering, and business provides him with the excellent basis for understanding and teaching investments and financial planning.He is also a very successful investor who has been investing in common stocks and mutual funds since 1980. He has also personally invested in both 401(K) and IRA plans, so he is familiar with participation and management of these types of investments. He has been investing in indexed common stock mutual funds since 1990.Dale became a Registered Financial Advisor in the State of Illinois in 2006 and is currently launching his business as a fee-only financial planner. He is President of Maley Financial Planning LLC.

    Read more from Dale Maley

    Related to Frequently Asked Questions About ETFs and Index Funds

    Related ebooks

    Personal Finance For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      10 Best ETFs to Buy for an All-Weather Portfolio

      Aug 30, 2018

      It used to be that investors asked themselves the question, "How many mutual funds should I have in my portfolio?" They still ask the same question of diversification, but more in terms of exchange-traded funds (ETFs). A portfolio of just two ETFs mi

      7 min read

    • Article

      Sustainable Investing: Making Sense of the Trend That’s Here to Stay

      Jun 28, 2021

      Sustainable investing has been around for some time, but it is becoming more and more mainstream. The practice of investing your money in companies that adhere to certain principles or policies that align with your personal beliefs, whether it be ren

      2 min read

    • Article

      When Debt Is A Drag

      Apr 5, 2023

      AMERICAN SCOTT Rieckens, 35, was drowning in debt, overworked, depressed and trying to afford a luxurious lifestyle, complete with a leased BMW. He and his wife Taylor, with their toddler Jovie, embarked on a yearlong odyssey to follow the FIRE rules

      1 min read

    • Article

      5 Strategies for Managing Your Changing Risk Tolerance

      Sep 9, 2019

      Saving and investing for short, medium or long-term goals involves a series of trade-offs to design an appropriate asset allocation. Important to creating that asset allocation is understanding your risk tolerance and how it can evolve over time. Ri

      5 min read

    • Article

      Schwab Intelligent Income vs. an Annuity: Which Is Better?

      Jan 7, 2022

      Most people worry about running out of money in retirement. In response, Charles Schwab launched Schwab Intelligent Income™ in 2020. The program promises monthly income from a regularly rebalanced portfolio of diversified ETFs plus a cash account. Pa

      3 min read

    • Article

      4 Tips on How to Build a Better Bond Position

      Jan 12, 2022

      It’s not easy being a bond investor. The struggle is real. Yields are low. Returns are flat. Meanwhile the S&P 500 stock market index rose nearly 27% in 2021 (Source: Morninstar.com). Bonds are like the quiet wallflower at the holiday party, overshad

      3 min read

    • Article

      16 High-Yielding Monthly Dividend Payers

      Sep 7, 2018

      What income investor doesn't love the frequent payout and reliable cash flow that can come from owning monthly dividend stocks, trusts and other entities? The ability to offset predictable expenses such as mortgage payments and utility bills every mo

      13 min read

    • Article

      Cut Tax On Passive Income From Dividends

      Sep 1, 2021

      Q I have been interested in the FIRE movement (financially independent, retire early) for 11 years. I work full-time and I am an aggressive saver, and regularly invest in listed investment companies and exchange traded funds listed on the ASX. The di

      2 min read

    • Article

      How to Avoid Financial Panic When a Recession Threatens

      Aug 30, 2022

      It’s OK to worry about a potential recession. The unknown is scary. But, don’t let those emotions lead you into financial panic. You are not the only one feeling anxious – more Americans are worried about a looming recession than in years. Two-thirds

      4 min read

    • Article

      5 Stocks to Own for Decades

      Jan 26, 2022

      In 2008, two investment managers crunched more than 20 years of market data and produced findings that can only be called shocking. Eric Crittenden and Cole Wilcox found that most stocks did significantly worse than the overall market averages over t

      4 min read

    • Article

      10 High-Yield Monthly Dividend Stocks and Funds to Buy

      May 1, 2019

      Monthly dividend stocks might seem like a gimmick, given that most American stocks pay out dividends quarterly. But they provide a very real service to income investors - especially those who have reached retirement. Capital gains can be fleeting, as

      10 min read

    • Article

      The Housebuilding Bust

      Mar 10, 2023

      Shares in Persimmon, one of the country’s top housebuilders, tumbled by 12% last week after it said it was “slashing” construction, says Archie Mitchell in the Daily Mail. The group warned that if “headwinds” such as higher mortgage rates and the cos

      2 min read

    • Article

      With the Market at Its Peak, Should You Wait to Invest?

      Sep 19, 2018

      Let's say you have some cash you want to invest for the long term. You know how important it is to get that money in the market so it can grow and earn compound returns -- but when do you invest it? The answer lies in this fact: It's about time in t

      5 min read

    • Article

      Rates Are Rising. Is It Time to Sell Your Bonds?

      Apr 11, 2018

      With interest rates still close to historic lows there has been lots of talk about how rising interest rates will reduce bond values. This hasn't been helped by President Trump's trade war threats, which have the potential of causing rising prices a

      6 min read

    • Article

      Best Index Tracker Funds

      Sep 1, 2022

      Best Index Tracker Funds
      6 min read

    • Article

      Best Index Tracker Funds

      Jan 11, 2023

      Best Index Tracker Funds
      6 min read

    • Article

      How To Invest In The S&P 500

      Nov 17, 2022

      How To Invest In The S&P 500
      6 min read

    • Article

      Best Index Tracker Funds

      Oct 4, 2022

      Best Index Tracker Funds
      6 min read

    • Article

      The 5 Best Stock Funds for Retirement Savers in 2019

      Dec 13, 2018

      I have nothing against index funds. In fact, I own them for virtually all my clients, as well as for myself. But I strongly disagree with investors who argue that index funds are the only sensible way to invest. Yes, roughly two-thirds of actively ma

      5 min read

    • Article

      Keep Your Nose In Front

      Apr 5, 2023

      Keep Your Nose In Front
      2 min read

    • Article

      Help Mitigate Loss with a Diversified Portfolio

      Jan 7, 2019

      Many people watch the news every night and look at how the Dow and the S&P 500 ended that day. They see it up or down and think their portfolio should be the same. Simply put, in most cases that is not the case and, in my opinion, should not be the c

      5 min read

    • Article

      Mutual Funds vs. ETFs: Why Choose One When You Can Use Both?

      Sep 2, 2019

      Both mutual funds and exchange-traded funds (ETFs) are designed to give investors great diversification. For example, instead of just investing in a few technology stocks, buying a technology stock mutual fund or ETF would allow you to own dozens or

      5 min read

    • Article

      Active vs Passive Investing ... Which Path to Take?

      Jun 22, 2018

      Passively managed mutual funds have been all the rage in recent years. They've taken market share from their active counterparts across the board, with $662 billion in inflows worldwide in 2017, according to Morningstar's 2017 Global Assets Flow Repo

      3 min read

    • Article

      I Wish I Knew What An Index Fund Was, But I’m Too Embarrassed To Ask

      Jul 28, 2023

      Index funds (also known as passive or tracker funds) aim to track the performance of a particular index, such as the FTSE 100 or S&P 500. The funds may hold all, or a representative sample, of the stocks in the underlying index (physical replication)

      1 min read

    • Article

      S&P 500 ETFs: 7 Ways to Play the Index

      Aug 9, 2021

      The universe of exchange-traded funds (ETFs) includes more than 7,000 products worldwide, ranging from sophisticated and tactical funds to rather vanilla index ETFs tied to tried-and-true benchmarks. And among the latter, few are more popular than S&

      1 min read

    Related categories

    Reviews for Frequently Asked Questions About ETFs and Index Funds

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Frequently Asked Questions About ETFs and Index Funds - Dale Maley

      Frequently Asked Questions and Answers About Etfs and Index Funds

      by

      Dale C. Maley

      SMASHWORDS EDITION

      * * * * *

      PUBLISHED BY:

      Artephius Publishing on Smashwords

      Frequently Asked Questions and Answers about ETFs and Index Funds

      Copyright © 2008 by Dale C. Maley

      All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise) without the prior written permission of both the copyright owner and the above publisher of this book.

      Q: Have you continued to study index funds since the publication of your book Index Mutual Funds: How to Simplify Your Life and Beat the Pros?

      A: I have continued to monitor the index fund arena. I continuously update a list of frequently asked questions & answers about ETF’s and index funds. This updated information about ETF’s and index funds is shown below.

      Q: What are stock market indexes?

      A: The over-all movement of stock markets can be simulated by constructing an index of that market. The oldest and most famous index of the U.S. stock market is the Dow Jones Industrial Average (DJIA). The DJIA is composed of 30 large companies. The 30 companies are selected by personnel at Dow Jones.¹

      From time to time companies are replaced with other companies. When the DJIA was first created, the stock prices of all 30 companies were added together and divided by 30. This simple formula has become more complex over the years as stock splits, mergers, and other activities have complicated the formula.

      A broader measure of the U.S. stock market is the S&P 500. The 500 companies are selected by the Standard & Poors Corporation. They are not the 500 largest companies in the U.S. stock market. The index is designed to simulate many different sectors of the U.S. economy. The index is composed of roughly 400 industrial, 40 utility, 40 financial, and 20 transportation stocks. The

      Enjoying the preview?
      Page 1 of 1