Index Funds vs ETF Investing | Stock Market For Beginners

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7 июн 2023

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@clearvaluetax9382 Год назад

Join our EXCLUSIVE Investing Community at: ClearValueInvesting.com GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax Some helpful videos for you: Index Funds Explained For Beginners: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-LsHcR52gIs8.html Index Funds vs. Stock Picking: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-SmXNkVuI3BA.html How to Invest in Stocks (for beginners): ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-dbDijzEgo7E.html

@ElonMuckX Год назад

Be careful with ETF's, some are shorted heavily by Hedge Funds, just as much as Hedge's short AMC/APE/GME/etc. You can see it when, over the long term, they don't go up much.

@kalayabanathhumblegadite2884 6 месяцев назад

Thank you for this, I was looking at the wrong video first. I saw someone on linkedin speaking about ETF's and I was intrigued. Thank you for all your videos

@jlee-dw3zu 21 день назад

My portfolio does not just cater for dividend stock, I hold $VFIAX in my Roth IRA and $VTI ( total stock market ETF) in my taxable brokerage account, two of my largest holdings. The individual dividend stock position all compliments the index holdings.

@EthanRaynolds 21 день назад

Diversifying with $VFIAX and $VTI is smart investment. It is financial independence not dependence, it truely empowers.

@HarperScott-pk6uk 21 день назад

Diversifying portfolio can be challenging without the right guidance. If you lack market knowledge, your best bet is to seek the expertise of an investment coach. That is how I have managed to stay afloat in the market, increaseing my portfolio over 60% in the beginning of the year. It is the best way to start up investment in my opinion.

@LiamThompson-cv9xy 21 день назад

@@HarperScott-pk6uk I couldn't agree more.

@LiamThompson-cv9xy 21 день назад

@@HarperScott-pk6uk Please who is the Advisor guiding you? He sound impressive.

@HarperScott-pk6uk 21 день назад

Jason Herman Pierce is the licensed fiduciary iam working with. His cutting edge financial strategies is top notch.

@a32tl 7 месяцев назад

I love ETFs. Find about 3 that are really good that you like. Buy them and keep buying them over and over and over, adding more and more shares as the years go by. Reinvest your dividends and stay the course. Practice that discipline and you will likely be very glad you did one day. The younger you are when you start, the better.

@hgyt4658 2 месяца назад

Do you have to report your dividends to irs even if you reinvest?

@Jurassic_Fart 12 дней назад

@@hgyt4658nah

@ericwilde4583 Год назад

The 85% of funds managers underperforming the index provided is for any single year. More impressively and importantly is to look at that figure over 5, 10, and 20 years, where it increases to 90, 97, and 99%. That makes for a more than compelling case for index investing, and how very rare the likes of Peter Lynch truly are.

@harleycartley3138 Год назад

Didn't realize the vast majority were that poor!

@gagnecaron658 Год назад

I've only sat down with 3 financial planners and 2 stockbrokers in my time to discuss investment planning and funnily enough, none tell you this fact.

@ericwilde4583 Год назад

@@gagnecaron658 Most of the people railing against passive investing also just happen to be active managers themselves. It is wise to look for a fiduciary CFP when starting out. I went with James Fletcher Brennan and I have had awesome experiences with him. Going from $25k to $90k in 8 months. I can say that's over-performing the index and S&P 500

@stanleyfujiwara1394 Год назад

That's because funds have to constantly move with the market. If you are a long term investor that just buys and holds you can easily beat the market. If you just invested in the FAANGM stocks over the past decade you would have killed any index fund.

@alex2143 10 месяцев назад

@@stanleyfujiwara1394"you can easily beat the market" Who to trust, Warren Buffet and Charlie Munger saying it's incredibly hard to consistently beat the market, who advocate for index funds for the vast majority of investors despite being active investors themselves, or... who are you again?

@vlsnathan Год назад

Thank You Brian for the information. But one critical point need to add is that majority of retirement accounts (like 401k, 403, 457) won’t allow customer to buy ETF and they have been forced to choose only index funds.

@clos3530 Год назад

You wouldn’t want to buy ETFs in a retirement account due to the nature of retirement account being tax deferred. You want mutual funds due to the active management

@randy74989 Год назад

@@clos3530 Index Funds are NOT actively managed. ETFs are more tax efficient; especially in taxable accounts.

@clos3530 Год назад

@@randy74989 again their can be index mutual funds and index etfs. Both are a basket of stocks however etfs the stocks are traded less within the fund causing less capital gains.

@Hawkinna Год назад

I’ve found that most let you choose annuities or mutual funds.

@Starscreamious Год назад

@@clos3530 You can buy ETF's and stocks in an IRA so that's not why. I think it's because of the kickback your employer gets due to the index funds higher expense ratio. Either that or people (all of our employers) are dumb af and are pissing away our retirement.

@FiatIsDead Год назад

Hands down the clearest explanation I've found. Thanks for the video!

@Utx55 Год назад

Thank you so much Brian. I just learned so much! You make it very easy to understand.

@ThuyVu-bw8cz Год назад

Thank you Brian! This is exactly what I need ❤️🥰

@weinowei143 Год назад

You make it very easy to understand the two...

@MarcPage Год назад

I think you meant to compare mutual funds and ETFs. You can have an Index Mutual Fund and an Index ETF as well as actively managed versions of each. That was one of the best comparisons I've seen of Mutual Funds vs ETFs. I personally prefer ETFs as well. You also have other options that you do not have with Mutual Funds, like Stop Loss orders.

@hersdera 10 месяцев назад

I'm currently aiming to refrain from initiating new purchases to steer clear of potential pitfalls in a bear market scenario. Earning profits in stocks proves challenging when institutional investors are primarily responsible for the selling pressure. I did come across an article highlighting individuals who managed to achieve gains of up to $150,000 amidst this market downturn. However, I'm curious about your thoughts on the best stocks to consider purchasing at this juncture or placing on a watchlist?

@bernadofelix 10 месяцев назад

I agree, reason I have all my invt-decisions ran through a coach on a daily-basis, it’s been 3years and counting and I’ve grown over $2million in gains, my coach's-analysis so far has steered me off losses and troubled waters and guided me make the most off major-breakthroughs in the mrkt, and esp. in this downtrend, her safe haven asset- trading, short-selling, ETF shorting skill-set are very essential..

@bernadofelix 10 месяцев назад

Sure, the inv-coach that guides me is Margaret Johnson Arndt, she's popular and has quite the audience, so it shouldn't be a hassle finding her, just search her

@tiansrealm 3 месяца назад

9😅

@alfresua2772 Месяц назад

😅

@thewolvesdenarcade Год назад

I've been buying a few shares of SPHD for years now. It's a monthly dividend ETF. It's nice watching your money work for you lol.

@edwinsutherland3964 Год назад

I’ve been investing in ETF’s for a few years now. I have the majority in VTI which is a total index fund but I also have a small cap, mid cap, emerging market and real estate ETF for diversity. At the moment they are down a little after the events of the last couple of years but I’m confident they’ll come up again soon. Everything I’ve researched also says ETF is better than index funds

@NJ-500 3 месяца назад

How much do you have in ETFs

@Just_Kianna Год назад

Hey b long time. You’re still out here killing it. Have a great week!!!

@clearvaluetax9382 Год назад

Long time no see Just K! It's always great to see you and I hope you have a great week as well! =)

@kkbox1125 Год назад

Thank you Brian for the great work!!

@notpoliticallycorrect Год назад

Excellent channel! We appreciate all that you do!

@rogersam1294 Год назад

Love this content. I need more good stuff to drag me out of the unproductive rabbit holes I can go down : )

@Image8O4 Год назад

I put index funds and ETFs in Roth IRA and ETFs and Stocks in regular brokerage

@Dr.irenebuenavistamolina Год назад

Thanks Brian, very helpful. Will you be able to make a video about ELNs, JEPI, JEPQ? Thank you again!

@MB1z 10 месяцев назад

Thank you for explaining this. It is so valuable to have people who can communicate these financial things that should have been taught in schools. Thank you.

@ddillonhr Год назад

Thank you for the video I was unaware of the tax implications of a Index Fund vs ETF and learned something new today. If you had an Index fund in a roth, the tax implications would be irrelevant right?

@shamzjones Год назад

Thank you Brian!

@andrescast Год назад

Great video, thanks Brian

@jooc415 9 месяцев назад

I really enjoy watching your videos. They’re so thorough and informative. Thank you so much!

@HelloAugustaGa 4 месяца назад

Thank you for sharing about index fund and ETFS very clearly appreciate your video ❤ thanks.

@Kep19901 Год назад

There are some ETFs that are actively managed for a slightly higher expense ratio.

@kdefensemartialarts8097 Год назад

Thank you for your videos.

@Ru4444 Год назад

Hi Brian, im a big fan. Can u make a video on how we can prepare ourselves for either Hyperinflation or Depression or both, please. Thank u.

@user-rb6jg6bj2i Год назад

Your explanation is realistic and straight to the point. l watch several video's on how to trade in the market but haven't made any headstart because they are either taIking some gibberish or sharing their story of how they made it. And l don't want to make mistakes by taking risks on my own

@CarC369 Год назад

Thanks for breaking it down very simply. I knew Index funds and ETFs were extremely similar but didn't know the exact details. It seems like ETFs are the way to go.

@hakseakang2458 Год назад

I think it needs to be clarified that the title of the video should probably be index funds vs index** ETFs. ETFs can be actively managed. Good video!

@Albert-777 Год назад

Appreciate the education 👍🏼🙏🏼

@fiscolorado656 10 месяцев назад

This is so clear and concise. I understand now!

@TonyKimCre Год назад

Great detailed explanation

@AJ-ln4sm 5 месяцев назад

Always great info! Thanks

@marcusdiaz138 Год назад

Thanks for the info 👍

@YosiTsitsu Год назад

Finally got it lol, thanks 😊 Time to learn how many markets work

@TeamMadcrew Год назад

the majority of my day trades are ETFs. both leveraged (3x) and hedged (inverse). hedged pairs like TQQQ/SQQQ works great during current volatile markets. other pairs i use are YINN/YANG, BITI/BITO, UCO/SCO, SOXL/SOXS. you win when you lose.

@hukimseng Месяц назад

Great idea it seems

@KristiansRieksts Год назад

hey Brian! i really appreciate your yt videos they are super valuable, when is your next upload?

@timothyjessie3618 5 месяцев назад

Great simple and no nonsense video. Please keep up the good work.

@stephenhegarty6179 Год назад

SCHD is a solid choice

@jordanmadden7388 5 месяцев назад

This was an awesome video. Thank you very much!

@Ayoteet 4 месяца назад

Very helpful thank you!👌🏽🙏🏽

@chestersidd1626 Год назад

I never knew that ETF is more tax efficient than Index Funds. I already have a bunch of Index Funds on my Roth IRA account. I was contemplating wether to invest in ETF or Index Funds on my taxable brokerage account. After watching this video and some of your videos on Index Funds and ETFs, I decided to go with a S&P 500 ETF on my Taxable brokerage account. That way I could sell cover call options in the future for more passive income.

@briandadude Год назад

ETFs are not necessarily more tax efficient at Vanguard. This is a common misconception

@clos3530 Год назад

You shouldn’t be concerned with being tax efficient in a retirement account since all gains are tax deferred anyways. Mutual funds and etfs are the same in the sense that they are a basket of stocks however etfs are more passively managed meaning less capital gains. Mutual funds that you are buying that are index oriented towards the S&P is more active where the money managers are trying to achieve the best return possible. Within your taxable account if you are just getting started it’s best to buy A share mutual funds which pays the fee upfront but then you never pay a fee again. If you have a large amount to invest up front then you can look at etfs

@ljrockstar69 11 месяцев назад

It is good to have some in mutual funds.

@maverickjones9418 Год назад

Thanks for the video.

@TheModeler99 2 месяца назад

best video I've seen on the topic. Everyone else just gives surface level information

@MrHamlet Год назад

Thank you for the education on this, as always super helpful.

@nesnaj1730 Год назад

Awesome video! Best explanation of index funds and etfs I have heard so far on the internet! any thoughts on passive versus active etf?

@clearvaluetax9382 Год назад

I think passive ETFs are generally better.

@Hshjshshjsj72727 2 месяца назад

Thanks i love the tax info also

@jonathangomez5281 Год назад

Thanks Brian

@alivaezi2976 5 месяцев назад

Great job! keep going my knowledgeable friend

@SmellLies 7 месяцев назад

Thank you for your amazing videos! You know how to convey investing better than any other investor I’ve heard on RU-vid.

@johnl9135 Год назад

Thank you, I'd learned a lot about stocks especially ETF and Index Fund since I'd started last year. I wish I knew this when I was in my teen.

@MarkDanger777 Год назад

You and me both brother

@RobertaPaes-mh1sq Год назад

I wish too

@clos3530 Год назад

I think you meant to say mutual funds not index fund. Index funds can be both mutual funds and etfs. Index fund just means it’s a fund that follows a particular index such as s&p or russel 2000 etc.

@andrewgeissinger5242 8 месяцев назад

He's confusing people with his odd use of terminology.

@ContrarianExpatriate Год назад

I prefer ETFs because you can make limit orders and stop orders unlike with normal index funds.

@briandadude Год назад

Found the speculator

@bkmcdonald32 2 месяца назад

Hey fella i love these videos and this channel. I am unsure how to evaluate liquidity and volume in ETFs. Most of the ones i find seem fairly low

@davidgavney6711 11 месяцев назад

I think people in the comments were confusing the indexing part versus the actively managed part of being either a mutual fund or an ETF. Here, he's comparing the non-managed indexed versions. Also, I've never seen an ETF in an employer's retirement plan, and they always discouraged "day trading" (places I worked) when people would try to play the market by switching funds frequently within their 401k's (even though it would take a couple days). Only until I was able to transfer that money out of there into a brokerage IRA account was I able to trade ETF's.

@jamahlgow763 13 дней назад

I love this, you explain this very well! Your knowledge is always comprehensive and highly valuable to the everyday investor like myself. Thank you!

@binfig8810 2 месяца назад

Thanks for helping us understand

@ashjain9687 11 месяцев назад

Thank you so much!

@jaehus1971 4 месяца назад

Very good video. Thank you!

@sharonsladen3948 Год назад

Thank you very much for all your opinions n education Single mom 🇺🇸

@javiersmith2216 27 дней назад

Good info. Thank you

@Sharkingit-be5qe 8 месяцев назад

Amazing explanation. you doing great.

@CMills8674 11 месяцев назад

Excellent review Brian!

@DashiB 6 месяцев назад

Thank you! I am still thinking that to choose but you opinion confirm me that ETFs for me is better right now. Thank you for your useful content I followed 🥰

@cosminmorga1331 18 дней назад

Thanks for the video

@bdriscollmd Месяц назад

One other consideration is that (at least at Vanguard) you can set up automatic investments for index funds but not ETF's

@PsychicPisces 9 месяцев назад

Thank you 🙌🏽

@happywong1671 5 месяцев назад

Interesting. Thanks.

@redsun5826 2 месяца назад

Thank you so much for explaining. I have both VTSAX and VTI, which are identical to each other. Seems pointless to have both and I couldn’t make up my mind whether I should keep both or get rid of one or the other. Based on the differences you shared, I think I’ll keep the ETF and get rid of the index fund just to simplify it. I don’t have much in the index fund, just the minimum amount required to have it, so I’m not too worried about tax implications.

@Aibagg Год назад

Great Video

@Kevinw4040 Год назад

I need peoples opinions/insight. Brian you were reading my mind on this video. I’ve been researching etf’s vs. index’s. I’m leaning towards ETF because I plan on putting more than 6500$ a year into this vs. most index’s I’ve seen are Ira/Roth Ira. I have no plans to touch this money for at least 15 years. Will I have to pay taxes on any of this yearly or just years down the road when I begin withdrawing? Thanks for any help.

@ohohoh0211 6 месяцев назад

thank you.

@lilramborambo4399 Год назад

Another awesome video my brotha 🫡

@clearvaluetax9382 Год назад

Always great to see you my friend!

@lilramborambo4399 Год назад

@@clearvaluetax9382 🫡🤑🤑🤑🤑🤑

@walanderson225 Год назад

I love when you do these type of videos Brian. I do have a question for you though. A few days ago I listened to the video that you did regarding our countries short term solution regarding the debt ceiling. Being that we are kicking the can down the road for the next two years it sounds like this move can have a significant affect on our already fragile economy. With this in mind, do you feel that the stock market will also be affected significantly by any economic volatility in the future?

@briandadude Год назад

Always be buying. Ignore the noise. Focus on your savings rate.

@kyawzeya3259 4 месяца назад

how about dividends and tax? and auto re-investing features?

@adammack5551 Год назад

Hello Brian how are you doing today sir ok, but have you heard of air quality concerns on other side of USA.

@Acesupersoaker 11 месяцев назад

I love you’re videos I was wonder if you can do a video on Three top index funds that pay dividends include: (VYM) Vanguard High Dividend Yield ETF. (VYMI) Vanguard International High Dividend Yield ETF. (BND) Vanguard Total Bond Market Index Fund. I did some research about the index funds thanks to you’re videos just wanted a second opinion. Thank you.

@higiniomorales459 Год назад

Index fund are perfect for IRAs and 401k, ETFs are great for your regular taxable brokerage accounts.

@briandadude Год назад

ETFs are more work because you can't automate the buying and have to buy exact amount based on the ETF share price.

@higiniomorales459 Год назад

@@briandadude - depends on the brokerage you use, I can buy fractional shares of any ETFs on robinhood. Also vanguard now allows you to also purchase fractional shares of ETFs as long as you'll buying "their" ETFs.

@briandadude Год назад

You’re right! I see Vanguard toting it now. Thanks for the heads up

@linoleumshake Год назад

ETFs doing better than my own stock picks so yeah etf is great for passive investing

@ashog1426 Год назад

Index funds sound more my speed ill look into them thanks.

@coreygigoux7342 Год назад

Hey B can you do a video on capital gain tax with cryptos.If u get tax by taking profits off your annitional investments ?

@ReadTheShrill Год назад

There are actively managed ETFs. In fact on Etrade, about a third of all ETFs are actively managed.

@li0T3d Год назад

Can you talk about annuities and pros and cons?

@DungNguyen-vn3eu Год назад

Voo, Vit, DGRO, SCHD, Vym are all solid etfs.

@citizenpunx 7 месяцев назад

Great video, it seems to me that an ETF > Index funds in almost all scenarios 🤷🏻‍♂️

@LiquidityOcelot 3 месяца назад

Great video! I invested 40-60% of my income, over the last years, in equity index funds, ETFs and individual stocks, which allowed me to retire in my 30s!

@OneofPowerLifeCoach Год назад

Hi Brian, i was wandering if you have any knowledge about the supposed Iraq Dinar revalue?

@jonrios1389 Год назад

VOO is my favorite.

@Jbertrand1977 Год назад

VOO and QQQ for me 😊

@foreveranuj 27 дней назад

My favorites are BKLC (ETF from BNY Mellon) and FNILX (Mutual Fund from Fidelity) - both are 0.0% Net Expense ratios, and solid in returns. These are the only two you need, really. Close competitors: SCHG, ITOT, VTI, FXAIX etc.

@mrlion2022 Год назад

Love ETF and Index funds I learned about index funds and ETF from a wise man back in the 1990s it's something not taught in public school. I wish it was. You literally can become a millionaire in ETF and index funds. Can you make a video of how it's done

@Kevinw4040 Год назад

I’d be a millionaire now if I’d known about them in my 20s. 52 now and that’s depressing.

@BecamePneuma Год назад

HODL. There is your answer.

@mrlion2022 Год назад

@@BecamePneuma the 🐢 🐢 always win

@Rust_Rust_Rust Год назад

@@Kevinw4040 I'm in my early 20s right now

@RobertaPaes-mh1sq Год назад

Can you put me through how I can do this 😢

@armygreenfj3924 16 дней назад

So for my Roth IRA should I go with VOO instead of my current FXAIX?

@flatbushtentcity 25 дней назад

I like your content. (Thumbs up)

@DunderHead.5000 Год назад

If the news was as straight up as Brian, I'd watch the news.

@Faraz70 Год назад

Vanguard says that their Index Funds have a propriety mechanism that shields them from tax implications not found in ETFs?

@FrankBurgos Год назад

I personally prefer Idex funds because it makes it much easier for me personally for passive investing. I set it and forget it. With ETF's I have to "pull the trigger myself" and it gets in my own head.

@Kevinw4040 Год назад

You can set up auto contributions on most platforms.

@FrankBurgos Год назад

@@Kevinw4040 I've been using vanguard. As far as I know auto invest is only available for index funds.

@briandadude Год назад

@@Kevinw4040 Most? Not Fidelity or Vanguard

@briandadude Год назад

@@FrankBurgos and you don't have to worry about bid-ask spreads with index funds either. Quite a few points not brought up in this video.

@uncookedlyric 11 месяцев назад

I agree

@jonv.6792 Год назад

If you want to be simple and long term investor that doesn't want to keep looking to the price movement. Just Invest and forget. Index fund is for you. No emotions involve and save you time and effort. But if you want to be savvy and want to time the market and willing to pay for spreads then ETF is for you.