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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. Thus, shareholders are paying for their expertise. Many investors are looking for above-average returns, but that can be hard to get.

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Wishing You'd Bought Nvidia? Surprise! You May Already Own It!

The Motley Fool

Well, if you own shares of an S&P 500 index fund, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) , the SPDR S&P 500 ETF (NYSEMKT: SPY) , or the Vanguard 500 Index Investor (NASDAQMUTFUND: VFINX) , you're a (small) co-owner of Nvidia. Note that ETFs are exchange-traded funds , mutual-fund-like securities that trade like stocks.)

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Amid Super Micro Computer's Accounting Challenges, Investors Should Never Forget This Investing Lesson

The Motley Fool

Hence, shareholders who bought this AI stock for anything other than a speculative play should get out now. Most signs pointed to Supermicro's growth story being plausible, and I am one of the shareholders who believed it. Some of these funds can even match or beat market averages.

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Vanguard's Largest Fund Is Closing in on an All-Time High. Is There More Room to Run?

The Motley Fool

Vanguard is a massive investment management company, offering mutual funds, exchange-traded funds (ETF), 401(k) plans, and many other financial products and tools. The company's founder, Jack Bogle, popularized low-cost passive investing through index funds. The ETF's all-time intraday high of $244.06

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This Simple ETF Could Turn $200 a Month Into $530,806

The Motley Fool

Mutual funds and exchange-traded funds (ETFs) will buy and sell stocks right after each rebalancing announcement, keeping their investment portfolios equally fresh -- with no extra effort required by the funds' shareholders. That's why I tend to prefer Vanguard's funds over other fund managers.

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Palantir Stock Is Joining the Nasdaq-100 Index, and Super Micro Computer Is Being Booted: What Investors Should Know

The Motley Fool

How does being added to the Nasdaq-100 benefit Palantir and its shareholders? A Nasdaq-100 index membership means mutual funds , exchange-traded funds (ETFs) , and other financial products based on this index will have to buy shares of Palantir.

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You Don't Have to Pick a Winner in Real Estate. Here's Why.

The Motley Fool

They're similar to mutual funds, which contain multiple stocks and other assets. The major benefit of REITs Although REITs trade on the stock exchange like other types of funds, one major thing separates them: REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends.