Index Funds

[Duck Rabbit]

Is there really a difference between different index funds? Everyone always recommends the Vanguard 500. But how is this one any different from say the ETRADE 500, or any other S&P 500 index fund? Is it lower fees in each fund or better algorithms that mirror the market?

[BeL0wMe]

VFINX sucks buy VTSMX/ VTI instead

[turnipmonster]

in "random walk down wall street", malkiel recommends the wilshire 5k (essentially VTSMX) over an S&P 500. according to The DaveR, it doesn't matter much which you choose over the long term.

[DespotInExile]

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Is there really a difference between different index funds? Everyone always recommends the Vanguard 500. But how is this one any different from say the ETRADE 500, or any other S&P 500 index fund? Is it lower fees in each fund or better algorithms that mirror the market?

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Look for tracking error and fees.

[Brad1970]

IMO, there is not a lot of difference, other than the fees charged, between an index fund at Vanguard & an index fund at say...Fidelity Investments or T Rowe Price. All index funds are designed to mirror the market. But I have never seen one that is significantly better in terms of returns than the rest.

[Grisgra]

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Is there really a difference between different index funds? Everyone always recommends the Vanguard 500. But how is this one any different from say the ETRADE 500, or any other S&P 500 index fund? Is it lower fees in each fund or better algorithms that mirror the market?

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Look for tracking error and fees.

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Can anyone save the lazier/stupider of us some time and tell me which has the lowest Index fund fees? I have a bunch of $$ in ING funds but I have a sense that the fees there are pretty high relative to other places.

[gull]

http://altruistfa.com/dfavanguard.htm

This webpage ranks the best index funds for each asset class. His information and advice is spot on.

[jively]

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http://altruistfa.com/dfavanguard.htm

This webpage ranks the best index funds for each asset class. His information and advice is spot on.

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I disagree. They are basing too much of their rankings on expense ratio, and not on what the funds are investing in, and the total return you are getting from it. For example, on the REIT page, they have Vanguard's VGSIX ahead of DFA's DFREX. DFA's expense ratio is 12 basis points higher. However, DFA's fund outperformed Vanguard's fund over the last 3, 5 and 10 years.

On the Large Cap Value page, they list DFA's tax-managed LCV fund the lowest, because it is not style pure, meaning it has some small cap value stocks in it. So what? Portfolios that are tilted toward small and value stocks should have higher returns over long periods of time. By making the value fund an "all market" fund, it makes less turnover and more tax efficient.

-Tom

[SubaruSTiMike]

bump, how is the VTSMX, i jsut want to put money somewhere and not worry about it for a long time. Everyones saying index funds, and since most index funds will be basically , like someone else said, the same, can I just put my money there and not worry?

[gull]

Yes, VTSMX would be great for that.