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Fogel

Silver Baronet of the Realm
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So I'm maxed out on my 401k and IRA for the year, and have finally completely decoupled from my move from Jersey after finally selling my house up there last month. Up until this point I've just been throwing extra money in S&P500 (I use vanguard admiral), but was thinking about looking at ETF's a bit more, was interesting in some more granular feedback on index vs ETFs. I'm assuming ETFs will give me a better shot at taking advantage of all the recent volatility if I wanted to be a bit more active in some of my investing?
 
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Furry

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So I'm maxed out on my 401k and IRA for the year, and have finally completely decoupled from my move from Jersey after finally selling my house up there last month. Up until this point I've just been throwing extra money in S&P500 (I use vanguard admiral), but was thinking about looking at ETF's a bit more, was interesting in some more granular feedback on index vs ETFs. I'm assuming ETFs will give me a better shot at taking advantage of all the recent volatility if I wanted to be a bit more active in some of my investing?

Why would you max your 401k already instead of spreading it out even through the year? Most companies wouldn't match if you aren't contributing. I am for 750 a paycheck rather than maxing it asap because of that.
 

Blazin

Creative Title
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Why would you max your 401k already instead of spreading it out even through the year? Most companies wouldn't match if you aren't contributing. I am for 750 a paycheck rather than maxing it asap because of that.

I'd assume he means he is currently contributing at a rate that results in it maxing
 

Sanrith Descartes

Get off my fucking lawn!
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If you can't figure it out message me and I'll send you pics showing steps, it is a separate trade order form than the normal one.
Ah. Ok I feel like less of a dope. On the website its the same trade ticket you just click the extended hours button.
 

Sanrith Descartes

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Why would you max your 401k already instead of spreading it out even through the year? Most companies wouldn't match if you aren't contributing. I am for 750 a paycheck rather than maxing it asap because of that.
Some companies apply the match at the end of the year. Mine do.
 

Sanrith Descartes

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So I'm maxed out on my 401k and IRA for the year, and have finally completely decoupled from my move from Jersey after finally selling my house up there last month. Up until this point I've just been throwing extra money in S&P500 (I use vanguard admiral), but was thinking about looking at ETF's a bit more, was interesting in some more granular feedback on index vs ETFs. I'm assuming ETFs will give me a better shot at taking advantage of all the recent volatility if I wanted to be a bit more active in some of my investing?
If I rrad this right I think you are misinterpreting ETF and index. An ETF is an electronic fund in many ways similar to a mutual fund. An index is a set of stocks/bonds designed to follow a set criteria (such as the biggest 500 stocks by market cap aka the SP500 index). An ETF can mimic an index (the SPY mimics the SP500 index) or it can be just a group of stocks.

ETFs provide diversity. Instead of you owning all the stocks in an ETF individually, you own a portion of the ETF which in turn owns all the individual stocks. For this administration you pay a net fee.

I'm not sure what exactly you are looking to take advantage if in terms of current volatility. Can you be a whole lot more specific in terms of your goals and what you are looking to accomplish? The more specific the better. Are you looking to trade the current ups and downs to try to make short term money? Trying to bet the VIX?
 

Fogel

Silver Baronet of the Realm
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I'd assume he means he is currently contributing at a rate that results in it maxing

Yep, this is the case

If I rrad this right I think you are misinterpreting ETF and index. An ETF is an electronic fund in many ways similar to a mutual fund. An index is a set of stocks/bonds designed to follow a set criteria (such as the biggest 500 stocks by market cap aka the SP500 index). An ETF can mimic an index (the SPY mimics the SP500 index) or it can be just a group of stocks.

ETFs provide diversity. Instead of you owning all the stocks in an ETF individually, you own a portion of the ETF which in turn owns all the individual stocks. For this administration you pay a net fee.

I'm not sure what exactly you are looking to take advantage if in terms of current volatility. Can you be a whole lot more specific in terms of your goals and what you are looking to accomplish? The more specific the better. Are you looking to trade the current ups and downs to try to make short term money? Trying to bet the VIX?

I guess the big question is, what's the difference between going ETF versus Indexes assuming I'm still looking at medium to long term investments/returns while having a bit of play money on the side for some more active short term investing/trading
 

Sanrith Descartes

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Yep, this is the case



I guess the big question is, what's the difference between going ETF versus Indexes assuming I'm still looking at medium to long term investments/returns while having a bit of play money on the side for some more active short term investing/trading
You are using the terms index and ETF in a way I dont think they are meant to be used. There are god knows how many tens of thousands of ETFs. They come in all flavors. You can find and invest in a "climate change" ETF that buys climate change friend companies. Not all ETFs match to indexes.

I "think" what you are asking is the relative value if using index ETFs for long term investments vs other types of instruments. Owning index ETFs like the SPY, IVV, QQQ, ITOT and DIA are a great choice for nearly all investors over the long term. There are different indexes and these present choices as to where to invest your money (the SP500 index, the Nasdaq 100, the DOW 30, the Russel 2000, the MSCI Global ex-US etc the list is endless). All of these indexes have matching ETFs you can invest in to track them. This is a great strategy.

You can also find ETFs that don't index but instead are a basket of holdings with a theme (such as Electric cars, robotics, Space, biotech etc). They are also ETFs but aren't attempting to mirror an index of stocks.

Does that make sense?
 
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Locnar

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ETFs (or mutual funds) are the only way you are going to "do a index". Unless you plan on buying 1 share of all 500, 100000 or whatever stocks in that index.
 

Gravel

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So I'm maxed out on my 401k and IRA for the year, and have finally completely decoupled from my move from Jersey after finally selling my house up there last month. Up until this point I've just been throwing extra money in S&P500 (I use vanguard admiral), but was thinking about looking at ETF's a bit more, was interesting in some more granular feedback on index vs ETFs. I'm assuming ETFs will give me a better shot at taking advantage of all the recent volatility if I wanted to be a bit more active in some of my investing?
You're using Vanguard, so there's no real reason to go with one over the other. Vanguard has a patented process that makes them basically identical.
 

Sanrith Descartes

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This is the type of bold moves American companies used to take. Dude is rolling the dice the vaccine works. If it does he will have a supply to sell in quick order.

 

Furry

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Haven't seen this in the news, but over the weekend a very large number of employees for AAL received furlough warnings here. Things are still well below half of normal traffic, though business has very slowly continued expanding.

Also, with the successful splashdown of the dragon, I wouldn't be surprised to see a bump in TSLA tomorrow.
 
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TJT

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So I can figure out how to buy fractional shares on the fidelity app but I can't figure out how to do it on the website. Is there some kind of restriction on it?
 

Sanrith Descartes

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So I can figure out how to buy fractional shares on the fidelity app but I can't figure out how to do it on the website. Is there some kind of restriction on it?
Yeah. They havent put fractional across all platforms yet. I believe fractional is app only at the moment.
 

Sanrith Descartes

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It might not impact anyone here, but a side effect of AAPL's stock split will be its influence on the DJIA. Unlike most indexes, the DJIA is price weighted and not market cap weighted. AAPL will no longer have the largest single impact on the DJIA once its stock price drops to around $100. That responsibility will move to UNH. I can see this as a drag on the DJIA results since AAPL wont be able to carry it upward as effectively.

DIA is one ETF i know of that tracks the DJIA.
 

Gravel

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That's why no one serious even looks at the DJIA.

S&P 500 or Russell 2000 are the only ones that matter.
 

Sanrith Descartes

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That's why no one serious even looks at the DJIA.

S&P 500 or Russell 2000 are the only ones that matter.
I cherry pick the good companies out of the DJIA and own them individually (AAPL, UNH, JPM, MSFT, JNJ, RTX, V and WMT). If they just made a new index called "the DJIA companies that dont suck" It would probably do quite well. :)