Index funds

[Beetlespinner]

I'm planning to move some money from some underperforming individual stocks to some index funds. Any recommendations would be appreciated.
Thanks in advance.

[boneil]

SPY QQQ or VGT VOO. There's also some more focused etfs out there like MGK a mega cap growth etf

[davidsa]

what are your goals? Index funds can be market types or sector specific which carry more risk. Buying any mutual fund in a taxable account requires some study of distributions and turnover.

My portfolio is now at Fidelity and they have a variety of index funds available. All the competition does as well. So it comes down to what brokerage you like, maybe the cost structure which is generally very low, etc.

On a personal basis, I have a fair amount of my portfolio in just an S&P500 index fund that fidity offers but given the run-up in the big 7, I have been diversifying some of that into Small cap index funds and even equity income mutual funds to get less exposure to the big 7

[digthemup]

I have Fidelity and they have some very good performing funds. I have their Fidelity 500 index , Puritan and Growth and Income with all in the 19-25% for 2024.
I have some money in T Row Price Dividend Growth which in the past 4 yrs has gone up 59%

[Beetlespinner]

I have some stuff through an advisor at Edward Jones. I started doing some on my own roughly a year and a half ago. (I'm just looking to learn some for myself.) This account that I'm asking specifically is just something I am doing myself through Charles S. I have some in an S and P, but just looking for something else to put it into with a time frame of roughly 10 years.

[SeanH]

I'm planning to move some money from some underperforming individual stocks to some index funds. Any recommendations would be appreciated.
Thanks in advance.

A low cost Index Fund (such as VTSAX from Vanguard), which tracks the Total Stock Market.....or an Index Fund that tracks the S&P 500 (such as FXAIX from Fidelity).
Total Stock Market Index funds and S&P Index funds perform almost identically, over time....so they are both reasonable options.

[davidsa]

A low cost Index Fund (such as VTSAX from Vanguard), which tracks the Total Stock Market.....or an Index Fund that tracks the S&P 500 (such as FXAIX from Fidelity).
Total Stock Market Index funds and S&P Index funds perform almost identically, over time....so they are both reasonable options.

building on Sean's message. In the Fidelity analysis tool, they compare your portfolio to what they call the Dow Jones US Total Market Index. that index has a composition of small, medium, large caps and value, blend and growth stocks that makes it up. Sounds like the VG fund referenced by Sean may be same/similar to the fidelity reference. I own the S&P500 index fund at fidelity in all my children's roth accounts and simply added some small cap index funds to get near the total market profile. Even though I'm retired, I have done roughly the same for myself.

I do own managed fidelity funds. The reason is I wanted some stock pickers who could find growth without buying the mag 7 that now dominates to S&P500 and for which we owe this great 2 year ride.

p.s. 5 years ago had you asked your question, I would say buy any S&P500 index fund, invest in it monthly, and never be concerned about market swings until about 5 years from retirement. but, 5 years ago we did not have 7 companies making up almost 34% of the total index which does not sound like diversification to me. Feels like an aggressive growth fund at this point which is fine if you have +10 year time horizon

[Sylvanboat]

Ten index funds that cover all of the major asset classes has worked great for me. A set percent in each fund and then rebalance once per year. I use Vanguard funds.

[g2072]

I chose SPLG over VOO just because of VOO's price. They do the same thing with very similar results. I also have some JEPQ that has done better than anything in my roth over the last year.

[davidsa]

Ten index funds that cover all of the major asset classes has worked great for me. A set percent in each fund and then rebalance once per year. I use Vanguard funds.

The idea of leveraging so many would have never crossed my mind up until the SP500 index became so dominated by the top 7. Ease of the rebalance is key. I assume one of yours is some type of global index fund less the US market?

[piscesman]

Wife and I are in several Vanguard funds that are Roth. VFIAX since 2014 before admiral shares were in place. Somewhere around $80/share back then. We couldn't contribute every year, but I took advantage of my company 401K offerings and invested there while still working. We then maxed out our Roth in 2024 with other Vanguard funds. Me VFTAX, started 2/7/2019. Figuring many years of upward growth with low price per share right now. Did 24.2% increase last year @ .14 expense ratio. For the wife, we split in 2 funds. Vong & ESGV. Vong tracks/mimics the Russell 1000 and ESVG does the same for large and medium cap companies. Vong did 33% increase 2024 w/ .08% exp ratio. Started in 2010 and averages 17%/year. ESVG did 24.69% 2024 w/.09 exp ratio. Started in 2018 averaging 14%/year. The 401K through my retired company didn't offer all Vanguard funds so I checked all available and researched for the best that suited me. Averaged 17% with VG and other funds together which included 2 VG funds and 2 others. That was rolled into my IRA when I retired. Like anything else, you must research the heck out of anything you might invest in, so you have a better understanding the investments potential....
Kim

[basser38]

Schd , voo,vgt, scho.. be careful of high div stocks whose payout ratio is above 60% and and reits with a payout ratio above 90%.. schd has a 3.6% div that grows 12% per yr on average.. voo follows s&p, vgt is more nasdq, scho short term bonds..