The 5 BEST Index Funds That Will Make You RICH

The 5 BEST Index Funds That Will Make You RICH

#Index #Funds #RICH

What’s up you guys it’s graham here so we’re gonna play a really quick game just put up five fingers and if all five fingers are still up by the time that we’re done then you could watch the whole video and if not sorry you gotta leave i don’t make the rules i

Just wait wait a second i do make the rules so let’s begin so we’ll start like this put up five fingers put a finger down if you don’t like making money put a finger down if you don’t like saving time put a finger down if you don’t like free

Things put a finger down if you don’t like watching youtube videos and put a finger down if you don’t smash that like button for the youtube algorithm okay i may have gotten carried away with that last one but if you still have all five fingers up congratulations you’ve qualified to

Watch this video to the very end because we’re going to be covering a topic that i have yet to cover like this before on the channel and that’s going to be a review of my top five favorite index funds that you could buy today to make the most amount of

Money as possible and the least amount of time is possible now i’ve covered index fund investing before in the past in terms of what it is and why it could be so profitable but for anybody new or anyone who wants to brush up on their index fund skills here’s what it is

An index fund is basically just like this big basket of stocks that you could buy into and when you do that you want a small portion of everything it’s kind of like going to a cookie store where they have a hundred different types of cookies each selling for one dollar a piece

At that price it gets expensive to taste test every single type of cookie so you can find the best ones so instead the cookie store has another option they have a 20 sample box that contains a small piece of all 100 different cookies that way you’re getting a little

Bit of everything for way less than it would cost you to buy them each individually or it’s kind of like those small cereal packs your grandma always seems to buy in the cupboard well the same sort of concept works for index funds as well instead of going to the stock store and

Going and buying each stock individually you could just go and buy an index fund that contains a small portion of everything the advantage of doing this is that index fund investing has outperformed 99 of active investors over a 20-year period and also with this there’s very little work you don’t need to read

Earnings reports or research stocks all you got to do is just buy into it consistently and that’s it and with index funds there’s a sample platter for anything you could possibly imagine i know i’m going to sound like bubba from forrest gump here but they got index

Funds for everything they got the s p 500 index fund the total stock market index fund real estate index funds bond index funds mid cap index funds small cap index funds large cap index funds i could go on forever generally though there are four different types of index funds that

You could buy into first is company size you could buy index funds of small companies mid-tier companies or large companies second you also have index funds that capitalize on location like the united states emerging markets or foreign markets third some other index funds might track a specific business or

Sector like retail restaurant space real estate tech industrial and so on and fourth they can also track currencies bonds and treasuries so no matter who you are what you want to invest in almost guaranteed there’s some type of index fund you could invest in so here we go here’s my top five

Index funds to invest in and i’ll break down exactly why they’re so good how much they cost and how you could get started because even though it might seem like a pretty simple concept not all index funds are created equal and some will end up making you more money than others

Just make sure if you appreciate these videos to smash that like button for the youtube algorithm because otherwise i’m gonna be sad and if you don’t want me to be sad just press the button that’s it helps me out tremendously so with that said thank you so much and we’ll begin right over

Here at my desk so coming in at number five on the list is an all-time favorite and classic of ours it’s v phi x this one is a vanguard index fund that tracks the s p 500 which is the top 500 publicly traded companies here in the united states

Buying into this one index fund is basically the equivalent of you buying into the largest 500 companies in the us and you’re going to get access to all the big wigs like amazon apple microsoft google facebook and so on now in terms of its performance it’s on par with the s p

500 as a whole but as we can see right here since the inception in 2000 over the last 20 years it’s averaged a 6.38 return and over the last 10 years we’ve seen a 13.95 return now if this seems like the perfect index fund and you’re wondering

But graham why is this one number five on the list it sounds really good why is it number five well that’s because as much as i love this index fund there are a few very very very minor downsides if you even want to call them downsides

Here are the downsides first there is a three thousand dollar minimum to buy into this fund so if you’re watching this without three thousand dollars to invest this fund is not going to work for you now there is an exchange traded fund called vu without any minimum though so that

Trades more like a stock and that one is really good and second v phi x also has an expense ratio of 0.04 meaning it’s gonna cost you four dollars every year for every ten thousand dollars you have invested now it’s hard for me to even call this a downside

Because honestly compared with 99 of index funds out there 0.04 is really really low but as you’re about to see there are some slightly more cost-effective options out there although in the big picture the difference of a few dollars a year per 10 thousand dollars you have invested is

Not going to make that big of a difference and the advantage with vanguard is that they’re basically the pioneer of low-cost index funds and that company has been around for a very very long time this fund was also founded in 1976 and is one of the longest running index funds

Out there so you’re getting the best of the best even though they’re not necessarily the cheapest this is like the big daddy of index funds oh and if you’re wondering the only difference between v phi x and vu is that vu has a slightly lower expense ratio at only 0.03 percent

But they don’t allow for automatic scheduled investments like you could do with v phi x so if you’re the type of investor who just wants to automatically apply an extra thousand dollars a month into an index fund without even thinking about it fifa x is gonna charge you an extra one

Dollar per 10 000 just for the convenience of doing so but really besides that that’s it next coming in at number four we got the behemoth of index funds and for probably most of you this could be the only investment you ever make in your entire life it’s that good

And that would be the classic vt sax now what makes this one so unique is that this encompasses the entire u.s stock market in one fund like pretty much this is everything if there’s a small cap medium cap large cap stock in pretty much any industry you could think of

This index fund probably covers it and for one low price you could get exposure to 3 529 different stocks sure of course there’s always a chance that the s p 500 might end up doing better but there’s always a chance too that it won’t so the safe play is just to invest

In everything with the expectation that over time the market is going to continue to grow and expand and even if some don’t do well you’re still going to have over 3 000 other companies to step in and pick up the base now of course i’m sure you’re probably

Thinking right now what’s the catch graham if you think this one is so good we should buy it why is it only number four well great question graham and uh that’s because there’s a few small minor minor downsides first no surprise there is a three thousand dollar minimum

Now if you want to get around this you could buy the etf version of the same fund it’s vti that’s pretty much the same thing with no minimums as long as you have enough to buy the stock but unfortunately you cannot automatically reinvest like you can with vt sax

So it’s really just a little bit more work on your end to manually go in and buy more anytime you want to add on to your position and second just like the last option there is a 0.04 expense ratio with vt sax and there’s a 0.03 expense ratio with vti again this is

Still insanely cheap compared to 99 of the index funds out there but still there are some better options like this one now coming in at number three we got the charles schwab s p 500 index fund swipex this index was started in 1997 and also follows the s p 500 very

Similar to v phi x which i had previously mentioned except with this there’s a few small differences first this one has no minimum so there’s no three thousand dollar buy-in and as long as you have a little money there you go you could buy it this one

Is easy now the second difference is that this one only has a 0.02 management fee which is half of what vanguard is or in other words you’re saving two dollars per year per ten thousand dollars you have invested but hey if you have a million dollars invested that’s a savings of two hundred

Dollars a year in management fees and that extra money could buy you to 100 bills now here’s the thing when it comes to index funds they mirror an index like the s p 500 and they do their best to replicate that as close as they can although they’re never going to be exact

That’s why you’re going to be seeing some slight differences in between how much each index fund makes like vanguard earned an annualized 13.95 return over 10 years while schwab made 13.9 percent however charles schwab has a slightly lower expense ratio saving you more money and now it looks like they’ve been

Getting slightly more efficient over time because recently their funds have been outperforming vanguard by 0.3 percent this difference is caused by overhead expenses and slight deviations and holdings between the different funds it’s not a huge deal but i just wanted to point it out because why not now i

Also want to throw in a two and a half on this list too because now is the time to do that and that would be swiss to six which is a charles schwab’s version of the total stock market index this one is very similar to the vanguard

One which tracks the entire u.s stock market and this one holds 3124 different stocks there you go there’s another option for anyone who wants to go into vt sax but doesn’t like the higher expense ratio and doesn’t like the 3 000 minimum either way this index fund is a

Really good option but still we have some other really great options as well and that brings us to this one and that would be fixed science i wish they would just call these normal names that are easy to say and pronounce like just just call it f500 just something easy

Anyway this is fidelity’s version of the s p 500 index fund and lately they’ve been playing a pretty aggressive marketing approach to try to reach a brand new audience here’s the thing most of these brokerages realize that millennials are soon one day going to be the ones running things and even though they

Don’t have a lot of money right now in a few decades they will and every brokerage wants to cash in on this that’s why they’ve recently revamped their entire business model and done something that very few brokerages have done so far for index funds they’ve lowered fees now keep in mind

These fees are actually more like operating expenses because it costs money to manage a fund like this but i think fidelity strategy is that they’ll just eat the costs they’ll pass those savings on to you they’ll get you as a customer and they hope that you stick around long term

Long enough for them to eventually make money from you so this index fund has a 0.015 expense ratio that is 25 lower than charles schwab and it has no investment minimum now sure it might only be a savings of 50 cents per year per 10 000 you have invested but every penny

Counts and this is a really solid choice they also have an honorary number one and a half on this list and that would be fizelix which is an international stock market index fund this is in my opinion a good fund for most people to get into because it covers foreign and emerging

Markets that could end up doing really well over the next few decades now it is true that historically the s p 500 has done way better than international stocks have but that might not always be the case for the future especially as other markets begin ramping up production

And consumption it also gives you a little bit more diversification outside the united states just in case i don’t know the benefits here is that there are no minimums and even better wait for it they have a zero percent expense ratio that’s right so this one

Costs you nothing to hold but wait if you thought that was good just check this out weeble has a totally new promotion right now where if you sign up and deposit a hundred dollars they’re gonna be giving you one free stock worth at minimum eight dollars and as much as one thousand

Six hundred dollars i figure why not because it’s free the link is down below in the description thank you so much all right and now my number one choice for index funds all things considered would be the fidelity totally free stock market index fizz rocks like i mentioned earlier with vanguard’s vt sacks

Fidelity’s fizz rocks pretty much covers the exact same thing except here’s the thing unlike vanguard which has a three thousand dollar minimum fizzrox has no minimum and here’s the other thing unlike vanguard which has a zero point zero four percent expense ratio fizz rocks has no expense ratio that’s right

It is entirely free now this was a major game changer for the entire index fund industry because fidelity was the first one to come out with a totally free index fund and i really think this is going to set the stage for everyone else to follow like as it stands right now a

Company like vanguard does not need to go chasing after the free index fund market because a company like vanguard has brand recognition and loyalty behind them plus when you invest with vanguard you know 100 you’re getting a very solid company but for fidelity to go and attract a brand

New audience to their platform they lowered their fees on certain index funds to nothing and they hope that’s going to be enough to get you to buy in and i’ll admit i love vanguard but once you start getting more and more and more money that expense ratio begins to add up like

Fidelity is going to save you 400 a year per 1 million dollars that you have invested and that 400 a year is worth potentially twenty one thousand dollars in twenty years from now invested at an eight percent return we’re also going to have to throw in one more here

Phinelix which is fidelity’s free version of the s p 500 index fund apparently they can’t just call this an s p 500 index because that means they would have to license that name and that costs money but hey they could call it whatever they want as long as

They pass the savings on to the customer with this one you’re going to get the same s p 500 index fund except with no fees and no minimum so there you go there’s a win for this so between everything i just mentioned you should be able to

Find the perfect index fund to invest in index funds within vanguard certainly have the brand recognition and name behind it but others like charles schwab and fidelity are cutting their fees to get you to move over to them instead either way it’s good for you because now

You get to save some more money and when it comes to me personally i like to invest in a mix between all of them most of my money is held within an s p 500 index fund but i also diversify a little bit more with the total stock market index fund

And also an international stock market index fund so really sticking between the main index funds of s p 500 and the total stock market index fund should really be all you need seriously if all you did was just buy into a total stock market index fund and then wait 20 years

You will have outperformed most active hedge fund managers and you would put yourself in the best financial position possible to make the most amount of money investing does not need to be complicated and it doesn’t need to be expensive either all of these are great

Index funds for you to invest in and all of it’s just about maximizing the value of the dollar and getting your free stock down below in the description and smashing that like button for the youtube algorithm so with that said thank you so much for watching i really appreciate it make

Sure to hit the subscribe button and the notification bell also feel free to add me on instagram i posted pretty much daily so if you want to be a part of it there feel free to add me there as in my second channel the gram stefan show i post there

Every single day i’m not posting here so if you want to see a brand new video for me every single day make sure to add yourself to that and lastly like i mentioned if you want your free stock down below in the description it’s a free minimum eight dollars all

The way up to one thousand six hundred dollars and all you got to do for that just deposit a hundred bucks there you go you got your free stock let me know which one you get thank you so much for watching and until next time

Like it? Share with your friends!


What's Your Reaction?

hate hate
confused confused
fail fail
fun fun
geeky geeky
love love
lol lol
omg omg
win win


Choose A Format
Voting to make decisions or determine opinions
Formatted Text with Embeds and Visuals
Youtube and Vimeo Embeds
Soundcloud or Mixcloud Embeds
Photo or GIF
GIF format