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Old 01-15-2019, 08:11 PM
 
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Hi everybody.I am a young investor saving for retirement.Do you think I should invest in a no-load total stock market index fund or equivalent ETF or the new Fidelity no-load/no fee/no minimum S&P 500 index fund? I read on a previous thread on this forum last year that a total stock market index fund can add a little bit more to your return vs the S&P 500.

Does anyone know any total market index funds that dont have a high minimum and has a very low expense ratio?I think Vanguard has a 3 grand minimum which would take me several months to come up with that.Thats why I am considering a total stock market ETF vs a index fund.I like the new fidelity fund because its no-load/no fee and no minimum.Sorry I am just confused.Hopefully yall can help.What do yall think I should do?
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Old 01-15-2019, 09:29 PM
 
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A confused young investor, eh

Well, I'm a Vanguard guy. Assuming you have an emergency fund, I'd save the three-large and buy VTSAX.
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Old 01-15-2019, 09:35 PM
 
Location: Vienna, VA
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I'm pretty sure you can buy 1 share with Vanguard. So for example ticker "VTI" total stock market ETF all you would need is $134 to start.
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Old 01-15-2019, 10:31 PM
 
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Quote:
Originally Posted by Market Junkie View Post
A confused young investor, eh

Well, I'm a Vanguard guy. Assuming you have an emergency fund, I'd save the three-large and buy VTSAX.
Okay thank you for your input.I appreciate it.I am a fan of vanguard as well..
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Old 01-15-2019, 10:32 PM
 
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Quote:
Originally Posted by 22003yo View Post
I'm pretty sure you can buy 1 share with Vanguard. So for example ticker "VTI" total stock market ETF all you would need is $134 to start.
Thats good news.I have at least that much.Thanks for your advice.
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Old 01-15-2019, 11:26 PM
 
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To anyone: VTSAX costs $75 in either of the accounts I have. I hate to open a third one...but would it be worth it in order to avoid the fee?
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Old 01-15-2019, 11:36 PM
 
Location: Omaha, Nebraska
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There's not much difference in performance between a total stock market index fund and an S&P 500 index fund, because large cap stocks make up most of the valuation in a total stock market fund. If you want to add more diversification, I'd suggest starting with an S&P 500 fund, then adding a mid-cap and a small cap fund later.

And I wouldn't sweat the fee. Go with the company you feel the most comfortable working with. I prefer Vanguard, but Fidelity is a good company as well.
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Old 01-16-2019, 03:51 AM
 
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Originally Posted by Aredhel View Post
There's not much difference in performance between a total stock market index fund and an S&P 500 index fund, because large cap stocks make up most of the valuation in a total stock market fund. If you want to add more diversification, I'd suggest starting with an S&P 500 fund, then adding a mid-cap and a small cap fund later.

And I wouldn't sweat the fee. Go with the company you feel the most comfortable working with. I prefer Vanguard, but Fidelity is a good company as well.
i agree , there is little difference between a total market fund and a s&p 500 fund .

the problem is the index weights small cap growth more than small cap value and value tends to do better more often so any alpha by value is usually wiped out by growth .
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Old 01-16-2019, 02:17 PM
 
Location: Omaha, Nebraska
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Originally Posted by mathjak107 View Post
the problem is the index weights small cap growth more than small cap value and value tends to do better more often so any alpha by value is usually wiped out by growth .
I've seen some small-cap value funds which are reasonably low cost, so that's always an option.
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Old 01-16-2019, 02:24 PM
 
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Originally Posted by Aredhel View Post
I've seen some small-cap value funds which are reasonably low cost, so that's always an option.
or just season an s&p 500 fund to taste with an extended market fund
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