Index Fund Buyers Guide - ETFs vs Mutual Funds

This is a beginner's guide to understanding mutual funds, I'll explain the differences between mutual funds and ETFs (exchange-traded funds) and I'll also look at the pros and cons of investing into each one. I also look at what kind of fund might be best, one that just uses the S&P 500 or even the world and how you would have done, dollar cost averaging into each one over the last decade. Enjoy!

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[MsLittleLife]

Thank you, this was really helpful to watch, much appreciated!! :)

[levifairway]

Great video Toby! Still don’t understand why you don’t have more subscribers, the effort and quality of your videos are great! Keep it up 🍻

[Cocomerise]

Another great video Toby. New to investing and yes, I too, wish I had invested earlier. Your videos are so helpful and I like how you cover all caveats. Well done!

[HustlerKam]

thanks toby I appreciate the work mate

[lawrencer]

Fabulous video n
Have a wonderful weekend 👍👍👍

[eye]

Excellent, indexes must be chosen very carefully, some of them generate inferior and even negative returns for years

[livviloolah]

great video - in particular because you identify an ETF is an index fund. there is so much misleading info out there that positions ETF vs index fund, because mutual funds are not properly defined.

I am in the "set it and forget it" camp so invest in VWRP. I didn't like vanguards life strategy as they are too UK weighted, and similarly I didn't want to invest 100% in US via S&P500.

[ScipioAfricanus]

VTSAX/VTI is the total US stock market, it is equivalent to US Equity index on Vanguard UK.

[michaelgrauvogl]

In Germany i can buy fractionals of a ETF. For Example: I can pay 100€ and get 1, 234 ETFs (or 0, 012 ETFs if you invest 1€). However this does not work for one time investments. Only for a savings plan if you invest for example each month. Some brokers also offer fractionals for stocks like apple, microsoft, amazon, ...

[jamaicaigot]

hey there, really enjoyed the video - would love to get these as audio only, are you on audea?

[shaereub]

I just invest in: VTI, KOMP, VEA, VWO. that's all that's in my retirement account.

[owencook]

Thanks for the information mate. I'm brand new to investing thanks to you and a few others!

[greggsmith]

Hi Toby, great video
How would someone keep track of how much accumulating dividends has been paid? Thank you

[interestedinmostthings]

Nice video again, very informative, one option I suppose is, if you were to invest a set amount buy the whole share in a ETF and the remainder could go into a index for which would allow you to purchase the fractional shares, is that an option?

[stuartlewis]

Hi, Toby, fantastic explanation. One quick question - I seem to be able to invest in VTI via eToro - is this illegal from the uk? Bit confused by your comments at the end of the video.

[davidpearson]

What currency ? at the moment all mine are in dollars it’s working very well at the moment with the pound at such low levels but over the long term I’m wondering if I should hedge against fluctuations

[schapm]

Toby, I may be missing something here. But my S&P 500 ETF (VUSA) through invest engine allows me to buy fractional shares???? As do all the other ETF's on that platform?

[shane.Donegan.]

hi ive started investing into the S&P 500 im doing £200 a month im thinking of investing more now should i invest more money into the S&P or should i invest lets say into the FTSEE 100 OR 250 I understand the idea of being diverse with these things however if im thinking nothing but future is it not best sticking more money into the S&P thanks

[LMGamingClips]

great video mate, about the Accumilation, im on trading 212 and am investing in the s&p 500 (vusa) and it doesnt get re invested back into stocks as its the only s&p 500 on trading 212, if i manually re invest the dividens it back into the s&p 500 then would i still get all the compound interests and benefits? Best regards

LEwie

[nls]

Thank you. qq So if we bought the income type index and then re-invest once we receive the dividends to the same fund, does it have the same effect as choosing accumulating version?