Index Funds vs Mutual Funds vs ETFs | Which One Is Best For Becoming A Millionaire скачать в хорошем качестве

Index Funds vs Mutual Funds vs ETFs | Which One Is Best For Becoming A Millionaire

I will discuss index funds vs. mutual funds vs. ETFs and which one is the best for becoming a millionaire. Investing in index funds via mutual funds or ETFs is the easiest way to invest in the stock market. 👍 Don't forget to give this video a thumbs up if it was helpful. I really appreciate it! If you want to know if you should invest right now then check out this video:    • Should You Invest Right Now   If you want to know why you shouldn't sell right now then check out this video:    • Why You Shouldnt Sell Right Now   👉 Don't forget to subscribe so you don't miss any of the 3 weekly videos posted on money, saving, and investing:    / @hackingtheratrace   Hey everyone! Today we are going to talk about index funds, mutual funds, and ETFs, and which one is the best for becoming a millionaire. Before we get started, I would like to say one thing. This is not legal advice, you should always talk to your financial advisor before making any decisions. I am not a financial advisor. So definitely, before you make any financial decisions, be sure to talk to your financial advisor. Okay, let's get started. Today we are going to look at index funds. What is an index fund? How does it work? Then we're going to look at the best way to purchase an index fund which would be through a mutual fund or an ETF which stands for Exchange Traded Fund. So the first thing I want to talk about is index funds. What is an index fund and why is it better than a stock? So if you think of an index fund like a pie and the stock is a piece of that pie. With index funds, you can get index funds for so many different sections of the market. You can get index funds for the entire stock market. For the S&P 500, you can have bond index funds, emerging market index funds, international index funds, real estate index funds, technology index funds, literally for any section of the market you're looking for, there is probably an index fund. Why is an index fund better than getting individual stocks? The reason is because it is passive investing. You don't have to go research all the companies look at what's going on, what are their projections, what is their liquidity, how are they doing, looking at stock charts, and literally analyzing all of these companies. You don't have to do that, and the great thing is by having an index fund it diversifies your risk. Let's just say you are amazing at picking stocks and you absolutely love this. There are several examples of companies where things just happened that could not have been predicted, looking at past earnings, productions, liquidity, future earnings, production models, nothing. So we'll give you an example. Look at Boeing with the 737 Max, if you were looking at Boeing stock as that plane was being rolled out, there would have been nothing that would have indicated that two of them were going to crash, and that most of the fleet around the world was then going to be grounded. This has a huge impact on Boeing stock. Again, looking at all that, researching all these things, you would not have been able to predict that. Another example that goes even a little bit farther back is Enron. Enron was this massive company, everybody was celebrating them buy, buy, buy, it's so great even before maybe hours, if not days before, everyone was super excited about Enron. But guess what? They were cooking the books. How would you have known that? How could you have known that by looking at stock charts or looking at all the things you would normally research for a stock and again, let's just say you are doing your research and you're looking online for you know, hidden, hot stock tips, again, some of these things are completely unforeseen, and look at Enron. Everyone said buy buy buy because no one knew, or if they did know they were hiding the fact that, they were completely cooking the books. These are more modern examples of why doing all the research and investing in one stock can be super risky. If we go back to the pie analogy, instead of having one piece of the pie, you literally have a small piece of the entire pie. Let's just say you have the S&P 500, the top largest 500 companies and let's just say two or three of them have one of these major blips you still have 497 other stocks that can counterbalance that issue versus having purchased that one stock. So this is a great option because you don't have to do as much research. Literally you pick the funds that you want to invest in, and you just start investing. Now that we've discussed what an index fund is, how it works and the benefits of buying a share of an index fund versus a stock. Let's get into which one is better the mutual fund or the ETF and what is the difference? So the first one we're going to look at is the mutual fund. So we're just going to compare the vanguard S&P 500 mutual fund versus the S&P 500 ETF.