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This post has been edited by lukenn: May 24 2025, 01:13 AM

If you are looking for a low-cost way of tracking the index, look at ETFs. Ask your broker to explain to you. Or I can recommend mine if you like, she's patient and good with new people Not sure if she still has time but I can ask

This post has been edited by wodenus: Sep 15 2016, 09:36 PM

cuz i thought the 2 were different things, but after more readings, i just knew that ETF is subset of index fund, and index fund is subset of mutual fund.

I assumed u were talking about traditional index mutual fund which is passively managed instead of mutual fund which is actively managed, so u asked me the question.

Yea i do know it provides the lowest cost.

There are 2 types of index funds, one is the ETF, the other is traditional index mutual fund like the Vanguard 500 Index. When i read about index fund earlier, i was confused with the name because it had a mutual in it, i thought index fund supposed to be passively managed but why the name mutual was there, hence i thought there was another type of index fund which is actively managed but after more reading i finally understood it cuz index fund is a subset of mutual fund, so it is logical that the mutual word is there too. Do correct me if my understanding is wrong.

As i said earlier, i did not know those 2 were the same. I thought there was some significant cost difference as it could alter my decision to buy which. As for why i want to know which u bought, cuz based on what i read, traditional index mutual fund is better for individual long term investors, so i might be able to find out ur rationale of buying ETF as a individual investor.

sorry if i quote again the same thing cuz i have another question regarding ur statement, anyway since investing in index fund means the diversification is there and i wont be doing the portfolio rebalancing , but if i invest straight into the index such as S&P, Dow, etc, i have to allocate how many portion of my money to which sectors myself, right? wont that be more troublesome as i can invest in index fund and the yearly expense might not exceed 1% itself?

thanks for ur advice

If you find it difficult to dissect, then I think index fund is for you, considering the fact that the fee is lower than 1%.

If you have a 100K, are you ready to pay 1K for the fee? Is it annually?

If you manually invest, in S&P index for example, you only pay about 500, once.

er.. ETFs do charge yearly fees but it's minute comparatively to local mutual funds'
http://etfdb.com/2013/complete-history-of-spy/
http://usatoday30.usatoday.com/money/perfi...-etf-fees_N.htm
http://www.schwab.com/public/schwab/nn/art...hey-Really-Cost

Well, you have not incorporate the spread.

er.. based on 1 or 0, there IS or NO management fees & other costs charged in ETFs?

Whether it is incorporated into the spread or not does not matter as others will argue the mutual funds' costs are incorporated into the NAV daily.

This post has been edited by wongmunkeong: Sep 18 2016, 10:40 AM

I also just opened an account with TD Ameritrade Asia

https://www.tdameritradeasia.com/tos/client/

You need to fund your account with USD3500 and they will rebate up to USD100 in transfer fees. Funding can be made either with cash T/T or share transfer from another local broker.

If you get a friend who has an account to refer you , he can can USD88 in referral fee

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This post has been edited by lukenn: May 24 2025, 01:11 AM

Kasi lu manyak manyak like!

Some people read some ang-moh or mat-salleh stuff and goes on a massive jerk-off and become an instant fan-boyz!

Xuzen

Question: Why in Malaysia, UTF like Kenanga Growth Fund can beat the index or benchmark year in year out for the past ten years?

Answer: Semi strong efficient market hypothesis

This post has been edited by xuzen: Sep 18 2016, 09:39 PM

i do know that, and i wont invest in overseas in the meantime, i just want to know ways to invest in US index fund so that when opportunity arises, i can capitalise on it

Alot of ppl invest in US index fund cuz individual investor average return and mutual fund return normally dont exceed index fund return. The reason might be US stock market is more efficient than Msia stock market,i dont know about that, just guessing.I read that big institutions are using advanced algorithms to trade, so it might make individual harder to make a good return.

But if it is easier to make money in Msia stock market, why not do it here, i just want to make my money grow at real rate, Even if Kenanga Growth Fund can beat the index for past 10 yrs, can it do so in the next 10 yrs? Anyway its return is quite impressive.

Im still learning stuffs so that i have more knowledge about how the financial market works, whether its in Msia or other countries, so if theres no opportunity in Msia already, i can utilise other opportunities in other countries.

Thanks for the insight

mutual fund fee is not efficient compare to etf.
if u take a look at MY etf, its performance is worst compare to MY mutual fund

You can buy ETFs like VOO from US Market using your Malaysian brokerage firm. You need to register for a international trading account but it should be free or cost is minimal. Depending on your broker, you may even buy it online by yourself.

I recently bought 10 shares in VOO and commission was approximately US$26. So commissioning is slightly under 2%

I don't think you can invest in an index fund but ETFs are alternative to index fund.

If you have trade ETFs before you will know that the fees are separated from the spread.

You have to look at other markets like the emerging markets, do not limited yourselves to the US markets.

Secondly, nobody knows where the top or bottom of the market is, not even Warren Buffet or George Soros. If you know, you could be the richest man in no time.

u should buy VTI to diversify the holding