What is the main difference between investing on SP500 ETF,SP500 index fund and SP500 mutual fund?

Discussion in 'ETFs' started by Mpas, Jul 24, 2019.

  1. Mpas


    Is there anything/any difference that i have to look up when investing long term on SP500 ETF,SP500 index fund and SP500 mutual fund?Or in the long term it doesnt matter too much?
    murray t turtle likes this.
  2. dozu888


    nothing... now just go all in tomorrow morning and stop thinking about it.... focus on increasing your earning power to 100k, then 200k.
    _eug_ and jl1575 like this.
  3. Robert Morse

    Robert Morse Sponsor

    Each product has a different cost structure built-in. That cost will reduce the NAV overtime vs the cash index. It is a cost to you.
    A mutual fund will issue a taxable report of short term and long term gains each year while an ETF does not incur a tax until sold.
    Mutual funds can be bought in small-dollar increments which is hard with an ETF.
    Not sure what you mean by an index fund. Can you give an example?
  4. dozu888


    in your next 20 years of investment... the biggest difference maker will be

    - if you make $50k a year and can only buy $10k a year; or if you make $200k and can put in 150k a year;
    - if you panic sell at market bottom, or hesitate to buy for whatever reason.

    what broker to use, what fund to buy, if you pay $6.25 or $5.75 per trade, these things make no difference.
    murray t turtle, _eug_ and Overnight like this.
  5. dozu888


    here is your action plan -

    tomorrow morning at the open, go all in with SPY, then don't visit ET anymore lol;
    get training, get a couple of high profile projects under your belt at work, then jump to your $100k job; the best job market we've ever seen... very doable;
    get couple more high profile projects under your way; establish industry contacts, go independent and get minimum $100/hour, there is your $200k/year after buying medical insurance.

    this applies to so many people I see here trying to make 25 cents a day out of a $25k account... waste of time while a clear passage to financial independence is laid out above, on a piece of napkin.
    murray t turtle and jl1575 like this.
  6. Buy a cheap index tracking fund that charges a few basis points per annum if you aim to invest long term. Don't feed active fund managers for something they do not deserve.

    Bum likes this.
  7. Jack1960


    And luck your wounds if the market falls.
  8. Mpas


    Thank you very much for your response!I really needed,seriously.
    murray t turtle likes this.
  9. Bum


    As GRULSTMRNN said above, for long-term investing just go with an ETF like SPY rather than pay a money manager or hedge fund.
    Holding fees are small and if you buy just 1 time each month, your commission costs will be low.
    Highly recommend adding options if you do a little research to understand the basics of calls and puts.
  10. %%
    I agree with about 95% of that; why?? William O Neil/IBD + profits.
    As far as buying /investing monthly and or $10K or $150K per year, in for example, in SPY; OK.
    10-20% corrections happen, it has in 2019/52weeks data also.

    Plenty of little things can help, for 30-50 years.Like Fidelity ContraFund .......has beaten SPY, for 10 years + most likely will again ;NOT a prediction.
    As far as putting all of $10 K or $150k in SPY tomorrow; you could- i would NOT , even IF is the yearly low !! SEPT sells offs [SPY, QQQ.....] happen so much;i would plan on that. Monthly or quarterly investments, most likely ,will beat one lump sum investment @ year, in a 30-50 year time period.

    OCT tends to be a bear killer/bear hibernator. But WE have so many more players that can play the short side/inverse ETFs; 1987 bear is not likely to happen @ all again-it could.
    I'm back to the strong Uptrends/bull Market. Good points Dz888.
    #10     Jul 29, 2019
    dozu888 likes this.