Remove Companies Remove Exchange-Traded Funds Remove Mutual Funds
article thumbnail

3 Vanguard Exchange-Traded Funds (ETFs) to Buy Hand Over Fist and 1 to Avoid

The Motley Fool

Exchange-traded funds (ETFs) are one of the best ways investors can build wealth. These funds are a lot like mutual funds with a key difference: You can trade them on the open market just like a stock. That's tiny, yes, but it means the company makes $1.4 Vanguard's average is just 0.05%.

article thumbnail

A Financial Mystery: Investors Paying Tens of Billions of Dollars to Underperforming Mutual Funds -- When Index Funds are Cheaper and Perform Better

The Motley Fool

In 2021, investors paid almost $90 billion in total fees on about $14 trillion of actively managed mutual funds to an industry flogging a product demonstrably inferior to index funds. Active vs. passive funds It's quite a problem, and a seemingly puzzling one, too. Then you’ll want to hear this.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Got $500 to Invest Monthly? This Exchange-Traded Fund Can Make You a Millionaire.

The Motley Fool

The exchange-traded fund (ETF) provides you with the benefit of diversification, is easy to buy, and allows you to take a hands-off approach to investing. One of the best vehicles that can get you the long-term growth you need is a fund mimicking the performance of the S&P 500 (SNPINDEX: ^GSPC).

article thumbnail

How Do You Beat the S&P 500? Buy This ETF That Has Done It in 7 of the Last 10 Years

The Motley Fool

By purchasing shares of an exchange-traded fund like the Vanguard 500 Index ETF or the SPDR S&P 500 ETF , you can gain instant access to a diversified group of 500 of the biggest U.S. In fact, most hedge funds and mutual funds underperform the S&P 500 over an extended period of time.

article thumbnail

Surprise: You're Probably Paying a Lot More in Investing Fees Than You Think

The Motley Fool

38% of mutual fund investors think they don't pay any mutual fund fees or expenses. If your broker is charging you for trades and you trade frequently enough, it might be worth switching brokerages. Expense ratios : An expense ratio is an annual fee charged by mutual funds and exchange-traded funds (ETFs).

article thumbnail

How Should a Beginner Invest in Stocks? Try This ETF.

The Motley Fool

There's nothing wrong with dipping your first toe in Wall Street's waters through a low-cost exchange-traded fund (ETF). What's an exchange-traded fund? An exchange-traded fund is a collection of securities that you can buy or sell through a brokerage firm on a stock exchange.

article thumbnail

What's the Best Way to Invest in Stocks Without any Experience? Try This ETF

The Motley Fool

Luckily, you don't have to take that approach, and if you're brand new to investing, buying exchange-traded funds (ETFs) is probably a better move. What are exchange-traded funds? Exchange-traded funds hold multiple securities, generally stocks, but trade like a stock on the stock market.