Comments on: 7 Myths About S&P 500 Index Funds

By: StockStudent

StockStudent — Mon, 18 Aug 2008 18:18:36 +0000

This is a great article. I also like your other posts on your blog. I have subscribed and look forward to reading more!

By: Weekend Linkage - August 10, 2008

Weekend Linkage - August 10, 2008 — Mon, 11 Aug 2008 03:41:30 +0000

[...] 7 Myths About S&P 500 Index Funds DR explains the benchmark we are using everyday to measure our investments. [...]

By: Weekly Roundup - Opening Ceremonies Edition

Weekly Roundup - Opening Ceremonies Edition — Sun, 10 Aug 2008 16:29:02 +0000

[...] Dough Roller has 7 Myths About S&P 500 Index Funds. I bet you don’t know some of these [...]

By: Weekly Dividend Investing Roundup - August 9, 2008 » The Dividend Guy Blog

Weekly Dividend Investing Roundup - August 9, 2008 » The Dividend Guy Blog — Sat, 09 Aug 2008 06:18:04 +0000

[...] myths of index funds you need to get [...]

By: The Digerati Life

The Digerati Life — Tue, 05 Aug 2008 06:14:29 +0000

I enjoyed this article a lot. I used to have the S&P as my main index fund but no longer. I own the Total Stock market index instead, which is a better representation of the U.S. stock market based on weightings in its portfolio (it’s a better U.S. benchmark than the S&P). But employers usually have the S&P index in their retirement plans because that’s what people are most familiar with.

By: Mo Money

Mo Money — Mon, 04 Aug 2008 15:15:27 +0000

This is good. For some one just learning to invest this is great. It is informative and it covers many of the issues facing the investor. Thank you!

By: Early Retirement Extreme

Early Retirement Extreme — Mon, 04 Aug 2008 01:56:02 +0000

Nice article. In combining myth 3 and 4, it suggests just buying the 10-15 largest market cap companies to get a zero fee portfolio that is effectively as diversified at the entire index.

However, I think most people buy index funds because it is easy and following the herd makes them comfortable. I just hope the herd does not get too big.

By: James

James — Sun, 03 Aug 2008 22:45:59 +0000

Great article. This is a good resource to help people know exactly what they’re investing in.

By: Randy

Randy — Sun, 03 Aug 2008 16:35:58 +0000

Nice article. Instead of an index fund, some people might be better served by purchasing an equivalent ETF. Why? Mostly for tax-efficiency.

Since index and mutual funds are pooled assets, a manager may be forced to liquidate a portion of the invested assets if a large number of investors decide that they want to cash in their fund. This can cause the fund to trigger short-term capital gains for all investors of the fund.

ETFs on the other hand, are created on-demand for a single investor. As such, the risk of inadvertently incurring short-term gains is minimized.

Best,
Randy