The Best 5 Index Funds To Own For Life (2024 Edition)

Summary

In this video, Humphrey discusses the benefits of investing in index funds, a strategy endorsed by Warren Buffett. He explains the difference between index funds and mutual funds, highlights the advantages of passive management, and shares his top five recommended index funds, focusing on their diversification, low fees, and long-term growth potential.

Takeaways

• 💼 Index funds are a recommended investment strategy for those seeking a 'set it and forget it' approach, as endorsed by Warren Buffett.
• 📈 Index funds are a type of mutual fund that passively track a stock index, such as the S&P 500, providing automatic diversification across multiple companies.
• 💡 The difference between index funds and mutual funds lies in the management approach; mutual funds have an active manager, while index funds are passively managed.
• 🌐 Investing in an index fund offers exposure to a broad market or specific sectors, reducing risk through diversification compared to investing in individual stocks.
• 💻 The video discusses the use of Dropbox for organizing and accessing video files, highlighting its benefits for remote collaboration and version control.
• 🏦 Fidelity's zero fee index fund (FN LX) tracks the S&P 500 without fees by creating a blend of 512 stocks, but requires a Fidelity brokerage account.
• 🌳 Vanguard's LifeStrategy Growth Fund (VGX) is a balanced fund with 80% stocks and 20% bonds, offering a mix of growth and stability with international exposure.
• 🎁 Weeble is offering a promotion of a guaranteed $50 worth of stock for new accounts with a minimum deposit of $500, providing a bonus for new investors.
• 📊 Vanguard Value Index Fund (VVX) focuses on large US companies in slower-growth sectors, offering stability with an expense ratio of 0.05%.
• 🌐 The Total Stock Market Index Fund provides exposure to nearly every stock on the market, offering broad diversification with an expense ratio as low as 0.04%.
• 🏆 Vanguard's S&P 500 Index Fund (VFIAX) is considered a gold standard for index funds, with a low expense ratio and a history of solid returns, making it a strong choice for long-term investors.

Q & A

What is the main topic of the video?

The main topic of the video is about investing in index funds, which are considered a good long-term investment strategy, and the speaker shares his top five index funds.

Why does Warren Buffett recommend index funds to the average investor?

Warren Buffett recommends index funds to the average investor because they offer a low-cost, set-it-and-forget-it investment strategy that allows wealth to grow over time without the need for active management.

What is the difference between a mutual fund and an index fund?

A mutual fund is a collection of investments managed by a professional money manager who makes decisions on behalf of the fund's investors, while an index fund is passively managed and tracks a specific stock index, such as the S&P 500, without a dedicated manager.

What is the benefit of investing in an index fund over individual stocks?

Investing in an index fund provides instant diversification, as it includes a broad range of companies within a particular index, reducing risk compared to investing in individual stocks. It is also more cost-effective and time-saving.

What is the ticker symbol for Fidelity's zero fee index fund that tracks the S&P 500?

The ticker symbol for Fidelity's zero fee index fund that tracks the S&P 500 is FN LX.

Why does the Fidelity zero fee index fund (FN LX) have no fees?

The Fidelity zero fee index fund has no fees because it mimics the S&P 500 with its own blend of 512 stocks, avoiding licensing fees that would normally be associated with using the S&P 500 brand name.

What is the main advantage of Vanguard's Life Strategy Growth Fund (vgx)?

The main advantage of Vanguard's Life Strategy Growth Fund is that it is a balanced fund with 80% stocks and 20% bonds, providing both growth potential and fixed income, along with international exposure, making it an all-in-one investment solution.

What is the difference between an index fund and an exchange-traded fund (ETF)?

While both index funds and ETFs track an index, an index fund typically trades once at the beginning and once at the end of the market day, has larger minimum investment requirements, and may be more suitable for long-term investors. An ETF, on the other hand, can be bought and sold at any time the market is open and may have lower minimum investment requirements.

What is the ticker symbol for Vanguard's Total Stock Market Index Fund?

The ticker symbol for Vanguard's Total Stock Market Index Fund is VTSAX for the mutual fund and VTI for the ETF version.

Why is the Vanguard S&P 500 Index Fund (VFIAX) considered the gold standard among index funds?

VFIAX is considered the gold standard because it tracks the S&P 500 index accurately, has a very low expense ratio of 0.04%, and offers broad diversification across multiple industries with no single sector dominating the holdings.

How does the speaker suggest a beginner should approach investing in the S&P 500?

The speaker suggests that a beginner should consider investing in the S&P 500 as it is often referred to as 'the market' and can offer an average return of 8 to 10% per year, with the understanding that returns will fluctuate year by year.

What is the significance of the Weeble promotion mentioned in the video?

The Weeble promotion is significant because it offers a guaranteed $50 worth of stock for new account sign-ups with a minimum deposit of $500, providing a 10% bonus and serving as an attractive incentive for new investors.

What is the importance of diversification in an investment portfolio according to the video?

Diversification is important because it spreads the investment across different types of assets, such as stocks and bonds, and across different markets, including international ones. This helps to mitigate risk and potentially increase long-term returns.

Outlines

00:00

📈 Introduction to Index Funds

In this video, Humphrey introduces index funds as an optimal investment strategy, particularly for those seeking a hands-off approach. He highlights the endorsement of this method by Warren Buffett, emphasizing the importance of regular contributions for long-term wealth growth. Humphrey clarifies that this is not a quick致富 (get rich quick) scheme but a slow and steady path to wealth accumulation. The video aims to educate viewers on the distinctions between index funds and mutual funds, with a promise to discuss the top five recommended index funds, updated from a previous video in 2021. He also mentions the use of Dropbox for organization and collaboration in his content creation process.

05:01

💼 Understanding Mutual Funds and Index Funds

Humphrey provides a detailed explanation of what an index fund is, contrasting it with a mutual fund. He describes a mutual fund as a collective investment where a professional manager makes decisions on behalf of investors, typically charging fees. In contrast, an index fund is passively managed and tracks a specific stock index, like the S&P 500, offering diversification across numerous companies. Humphrey also discusses the concept of Exchange Traded Funds (ETFs) as equivalents to index funds, with differences in trading times and minimum investment requirements. He introduces the Fidelity zero fee index fund (FN LX) as a cost-effective option for tracking the S&P 500, noting its no-fee advantage and the need to use Fidelity's brokerage account.

10:03

🌐 Diversification with Vanguard's Growth Fund

The video continues with a discussion on Vanguard's LifeStrategy Growth Fund (VGX), a balanced fund consisting of 80% stocks and 20% bonds. Humphrey explains that this fund offers a mix of domestic and international exposure, aiming for a balanced investment strategy. The fund's expense ratio is noted at 0.14%, and Humphrey provides historical performance data, suggesting potential for better returns if international equities perform well in the future. He also mentions a promotion by Weeble, offering a guaranteed $50 stock bonus for new account sign-ups with a minimum deposit.

15:04

🏦 Stability and Growth with Vanguard Index Funds

Humphrey discusses the Vanguard Value Index Fund (VVX), which focuses on large, stable US companies that may grow at a slower pace than the broader market. He notes the fund's low expense ratio of 0.05% and its historical returns. The video then shifts to the Total Stock Market Index Fund, available on different platforms with varying ticker symbols. Humphrey emphasizes the fund's broad exposure to nearly every stock in the market, offering ultimate diversification. He concludes by discussing the Vanguard S&P 500 Index Fund (VFIAX) and its ETF equivalent (VO), highlighting their low expense ratios and historical performance, suggesting these as potential long-term investment choices.

🌟 Conclusion and Additional Resources

In the final segment, Humphrey reiterates the importance of investing in index funds for long-term growth, acknowledging that past performance is not indicative of future results. He encourages viewers to take advantage of the Weeble promotion for a free stock and invites questions and feedback in the comments. Humphrey also recommends his 'Investing For Beginners' video for further education on investing, wrapping up the video with a reminder of the key points discussed.

Keywords

💡Index Funds

Index funds are a type of investment vehicle that aims to replicate the performance of a specific index, such as the S&P 500. They are passively managed, meaning they do not require a fund manager to actively pick stocks. In the video, the host emphasizes that index funds are a recommended investment strategy for long-term wealth growth, as they provide diversification and are generally low-cost. The script mentions that Warren Buffett, a legendary investor, also endorses this investment approach.

💡Mutual Funds

Mutual funds pool money from multiple investors to invest in a portfolio of stocks, bonds, or other securities. They are typically managed by a professional money manager who makes investment decisions on behalf of the fund. The video script explains that mutual funds differ from index funds in that they have an active manager, which can lead to higher fees. The host uses the example of a mutual fund where investors collectively invest $100,000 each, managed by a professional to achieve returns.

💡Passively Managed

Passively managed funds, like index funds, do not involve a fund manager actively selecting or managing the investments. Instead, they track the performance of a specific market index. The video script highlights that index funds are passively managed, which helps keep costs low and is a key factor in their appeal for long-term investors.

💡Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, or sectors to reduce risk. In the context of the video, diversification is achieved by investing in index funds, which hold a wide range of companies within a specific index, thus spreading the risk and not relying on the performance of a single stock or sector.

💡Expense Ratio

The expense ratio is the annual fee charged by a fund as a percentage of the total assets under management. It is a critical factor in determining the cost of investing in a fund. The video script discusses the low expense ratios of index funds, such as the Vanguard S&P 500 Index Fund, which has an expense ratio of 0.04%, making them an attractive option for cost-conscious investors.

💡ETF (Exchange Traded Fund)

An ETF is a type of investment fund that is traded on stock exchanges, similar to individual stocks. They typically track an index, commodity, bonds, or a basket of assets. The script mentions that ETFs can be bought and sold throughout the trading day, unlike traditional index funds which only trade at the market open and close. The host also notes that most index funds have an ETF equivalent, providing flexibility for investors.

💡Fidelity Zero Fee Index Fund

The Fidelity Zero Fee Index Fund, as mentioned in the script, is a unique index fund that tracks the S&P 500 but does not charge fees. This is achieved by creating a blend of 512 stocks to mimic the S&P 500, avoiding licensing fees. The script highlights this fund as an example of a low-cost investment option, although it requires using Fidelity's brokerage platform.

💡Vanguard Index Funds

Vanguard is a well-known investment management company that offers a range of index funds. The video script discusses several Vanguard index funds, including the Vanguard S&P 500 Index Fund (VFIAX) and the Vanguard Total Stock Market Index Fund (VTI). These funds are noted for their low expense ratios and broad market exposure, making them popular choices for investors seeking diversification.

💡Stock Market Index

A stock market index is a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market. The video script uses the S&P 500 and the Total Stock Market Index as examples of indices that index funds can track. These indices provide a snapshot of the performance of the broader market, making them suitable benchmarks for index funds.

💡Weeble

Weeble is mentioned in the script as a platform offering a promotion where investors can receive a guaranteed $50 worth of stock by signing up and funding their account with a minimum of $500. This promotion is highlighted as an opportunity for beginners to start investing with an additional incentive, demonstrating the video's focus on accessible investment options.

💡International Exposure

International exposure refers to the inclusion of investments from countries outside the investor's home country. The video script discusses the benefits of having international exposure in an investment portfolio, such as the Vanguard LifeStrategy Growth Fund, which allocates a portion of its holdings to international stocks and bonds. This diversification can potentially balance out the risks and returns of a purely domestic investment strategy.

Highlights

Index funds are recommended by Warren Buffett for a 'set it and forget it' investment strategy.

Index funds are a long-term investment strategy, not a get-rich-quick scheme.

Index funds are passively managed, unlike mutual funds which have a professional money manager.

An index fund invests in a stock index, such as the S&P 500, providing automatic diversification across many companies.

Investing in an index fund is cheaper and more time-efficient than buying individual stocks.

Dropbox is used by the speaker for organizing and collaborating on video files with a remote team.

Index funds and ETFs are often used interchangeably, with slight differences in trading times and minimum investment requirements.

Fidelity's zero fee index fund (FN LX) tracks the S&P 500 without fees, mimicking the index with a blend of 512 stocks.

Vanguard's LifeStrategy Growth Fund (VGX) offers a balanced approach with 80% stocks and 20% bonds.

Vanguard Value Index Fund (VVX) focuses on large US companies in slower growth sectors, offering stability.

Weeble is offering a $50 stock bonus for new accounts with a minimum $500 deposit.

Total Stock Market Index Funds provide exposure to nearly every stock on the market, offering ultimate diversification.

Vanguard S&P 500 Index Fund (VFIAX) is considered a gold standard with a low expense ratio and broad diversification.

Investing in an index as a whole is generally safer than investing in individual stocks.

The speaker recommends considering both the S&P 500 and Total Stock Market Index Funds for long-term investment.

Investors can choose between the ETF versions of index funds for more flexibility, such as VTI for total stock market exposure.

Transcripts

what's up guys Humphrey here today we're

going through in my opinion one of the

best methods to invest your money and

that is through the use of index funds

these are great for those of you that

want a set it and forget it type of

strategy and it's even a strategy that

legendary investor Warren Buffett swears

by and says that quote the average

investor should put their money in a

lowcost index fund and that's his

primary recommendation by simply

contributing and investing regularly

into these funds your wealth will grow

over time now I do want to note that

this is a long-term investment it's not

some type of get rich quick type of

thing you aren't going to see your

portfolio double in the span of a few

months but if you are the type of person

that likes getting rich slowly and

steadily than this strategy is for you

in this video we're going to explain the

Nuance differences between index funds

and mutual funds because I think it's

important to know the difference and

then we'll go over my top five funds and

I've actually updated this list since my

last video on the subject back in 2021

now if you would like to just skip ahead

to the top five index funds you can

definitely do that through the time

stamps and chapter markers but I think

that if you do stick around for the

context you're not only going to

understand more about investing but be

more self- assured with those choices

all right so a brief definition of an

index fund it's basically an investment

that you can buy within your brokerage

account it's a popular term but to

understand how it works we need to

actually explain a different type of

fund that came first which is known as a

mutual fund a mutual fund now is when

investors pull their money together to

invest in stocks and other Investments

and the fund typically has a

professional money manager making

decisions on behalf of that fund so

let's just pretend 10 for a second you

and I we both have $100,000 each that's

pretty dang nice and maybe another 100

people also have $100,000 and we all

pull our money and give it to a money

manager and that money manager's job is

to invest in a selection of stocks or

Investments on our behalf in order to

get the largest return in exchange for

this service the money manager will

charge you a fee because hey they need

to feed their kids and buy a house as

well but the idea is that they're trying

to beat the market returns in this case

you might be paying a High fee for being

invested with this money manager so a

mutual fund has a money manager involved

but an index fund does not have a

manager it's actually passively managed

however an index fund is actually a type

of mutual fund so I know that's a little

bit confusing but for the purpose of

today's video all you need to know that

an index fund just implies that it

invests in a stock index an index would

be something like the S&P 500 it's a

collection of the top 500 companies in

the United States or in the UK they have

something called The footsy 100 which is

comprised of the top 100 companies in

the UK so an index fund investment seeks

to automatically track and invest in all

of the companies in that particular

index and that way all you have to do as

the investor is to buy the index fund

and by buying that one fund alone you

get a small slice of every company that

is within that index that means you're

automatically Diversified because your

investment is now spread across say 500

or a thousand different companies and

buying an index fund is way cheaper than

buying individually those 500 companies

on their own not to mention it probably

saves you a crap ton of time as a

financial YouTuber keeping my content

and data visuals organized across

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finding video assets and keeping three

team members all organized is like

managing one big group project and it's

crucial to be organized to consistently

put out quality videos that educate you

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I've been using it with my team for the

past couple of months to organize edit

and access our video files from anywhere

in the world as you guys may or may not

know Ricky my editor is based in Toronto

and I'm here in California in addition I

have a short form video editor Andrew in

Detroit Dropbox is a great centralized

platform that allows us to collaborate

on files together all remotely in

addition to keeping track of where

things are at all times for example I

really enjoy their shared workspace and

folders you can search for a key term

within Dropbox to find any file quickly

instead of digging around to find the

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places for a change of scenery lastly

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Dropbox I can't imagine running my

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benefit from a single place that keeps

you organized for a reasonable price

like Dropbox learn more by clicking the

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Dropbox for sponsoring this portion of

the video you may also hear people using

index fund and the term exchange traded

fund or ETF interchangeably this is

because most Index Fund have what's

called an ETF equivalent and those two

funds typically have the same exact

Holdings there are some slight nuances

in how they trade so for example index

funds only trade once at the beginning

of the day and once at the end of the

market day versus an ETF can be bought

and sold at any time the market is open

index funds usually also have larger

minimum investment requirements so

sometimes in the thousands of dollars

for some of the funds out there and

that's why if you don't have the minimum

you may opt for an ETF that tracks the

index instead for most investors though

the difference is going to be pretty

negligible between ETFs or index funds

but if you are interested in the nuances

of them I will leave some further

reading for you guys down below in the

description all right so let's actually

get started with the list of index funds

today starting with number five which is

ticker symbol FN LX this is a fidelity

zero fee index fund that tracks the S&P

500 and one of the main benefits of this

fund is that according to its name it

has no fees most index funds carry some

type of fee and those fees usually come

from licensing payments that the broker

will have to pay to the S&P 500 for

using that brand name of S&P 500 so what

essentially Fidelity has done here is

that they've created their own blend of

512 stocks in this case to mimic the S&P

500 so that they can avoid paying those

fees and offer you a zero fee expense

ratio show type of index fund this

particular fund has been around for 5

and 1/2 years and has been tracking the

S&P 500 returns since then and you can

see that the average annual total

returns for this fund are right around

9.15% for the past 3 years and 15.81%

for the past 5 years now the downside is

if you can even call it a downside is

that you need to use Fidelity's

brokerage account and it's limited as

such now if you're already on the

Fidelity platform that's probably a good

thing but if you're invested in say a

different brokerage let's say you're

using Vanguard we Robin Hood Etc and

you're thinking about switching over

just to buy this fund I would say it's

probably not that worth it since the

other index fund fees that you're

probably investing into on other

brokerages are ideally quite low say

four or $5 a year for $10,000 invested I

don't think it's that big of a deal

Vanguard for example has an index fund

under the ticker symbol vfiax and that

also tracks the S&P 500 and the expense

ratio is extremely low we're going to

talk a little bit more about that Index

Fund in particular later on in this

video and why I prefer that one over

this version so make sure to stick

around for that now if you're a complete

beginner the S&P 500 is typically what

people refer to as the market and when

you are investing in the S&P 500 you can

typically expect a return of around 8 to

10% per year on average of course if we

were to look at the year-by-year

performance it's not like every single

year returns 8 to 10% what you actually

have in actuality is that some years are

going to be plus 20% plus 15% and then

other years are going to be down so in

2022 the entire index as a whole was

down close to 20% still though this is

going to be a really solid choice for

most people and it's really nice to not

have to pay a fee it just adds peace of

mind just be aware that if you ever want

to transfer or leave Fidelity you may

have to sell this fund and transfer your

money out that way which means you might

incur a capital gains tax hit so you

can't just simply transfer this Fidelity

holding to any other brokerage Index

Fund number four today on our list is

vgx this is vanguard's life strategy

growth fund as they like to call it and

what that means is that it's a balanced

fund comprised of 80% stocks and 20%

bonds the idea here is that it's

designed to give you some of the upside

of stocks while giving you some fixed

income via the bond Holdings as well as

some International exposure a portion of

the stocks are actually allocated

towards International and a portion of

the bonds are also allocated towards

International bonds as well essentially

it's like an all-in-one index fund that

seeks to just give you an easy set it

and forget it type of approach now the

way that this works is that overall it

just invests in four other Vanguard

funds so you'll get the total stock

market index fund the total

International stock market index fund an

international bond fund as well as a

domestic bond fund all from Vanguard now

just to give you some notes on

International exposure International

stocks have actually underperformed the

US for the past decade or so but there

are going to be some runs of decades in

which International stocks will

outperform the United States you can see

here that depending on the time frame

International stocks can outperform the

S&P 500 and vice versa so if you're

someone who thinks that we will revert

to the mean eventually having some

exposure in your portfolio of

international stocks could be a good

thing since we don't actually know which

markets the United States or

International stocks will be more

successful in terms of investment

returns moving forward having broad

diversification is never a bad thing but

it might actually test your patients a

little bit this Fund in particular has

an expense ratio of 0.14% so that means

on every $10,000 that you have invested

in it you will pay a yearly fee of $14

this fund has returned about 8% uh since

Inception and the three-year return is

not that great but overall I think that

if International equities start doing

better in the future this fun could see

some upside now one thing I wanted to

share with you guys before we get into

index fund number three is that Weeble

is actually giving away a guaranteed $50

worth of a stock as long as you sign up

and fund your account with a minimum of

$500 this is one of the better stock

promotions I've seen in a while because

a 10% bonus on your $500 deposit is

actually quite good just make sure to

invest it for the long term and that

should be a really nice bonus for you so

the link for that will be down below and

any link that you use of mine will

actually help support the channel so

thank you for that okay third on our

list today is ticker symbol vvx vvx is a

Vanguard value Index Fund which invests

in the stocks of large US companies in

Market sectors that tend to grow at a

slower Pace than the broad Market that

means it's typically investing in large

safe companies and in short it's less

about growth and more about stability

when it comes to this fund the return of

this fund since it was started in 2000

has been roughly 7.42% and in The Last 5

Years it's returning just a hair under

12% at 11.99 as you might have kind of

picked up from today's video Vanguard

index funds are some of the cheapest on

the market with super low expense ratios

and this particular Index Fund has an

expense ratio of

0.05% that means for every $10,000 that

you have invested in this fund you'll

pay about $5 a year in fees which is

pretty dang good now this particular

Index Fund has 328 total stocks within

it and the top 10 Holdings include

things like JP Morgan Berkshire hathway

Exxon Mobile Home Depot Etc the median

market cap of a holding in this fund is

$13.6 billion so these are typically

larger companies that are going to be

pretty stable the downside of this

particular Fund in my opinion is that

since it's so focused on large companies

these companies May underperform the

broader stock market but in a downturn

they may not be as volatile as others I

think the other caveat that you must

know about Vanguard index funds in

general for this video is that you

typically need a $3,000 minimum to even

invest in them also Vanguard funds are

typically only available on the Vanguard

platform so if you want to invest in it

outside of Vanguard or perhaps you want

to invest a lower dollar amount what you

can do is buy the ETF equivalent instead

which is ticker symbol vtv for example

if you pull up a brokerage quote vtv is

listed here for around $160 per share

and you can buy it directly like this on

the market all right Index Fund number

two today is going to be the total stock

market index and there are a few

different ticker symbols for these

depending on what platform you're on so

on Fidelity it's going to be

fzx and on Vanguard it's going to be

vtsax now the Fidelity version obviously

will have no fees or no minimums but the

Vanguard one as you can tell will have a

$3,000 minimum unless you buy the ETF

version which is vti the expense ratio

is 0.04% so $4 for every $10,000 that

you have invested into it and the beauty

of this Index Fund in my opinion is that

for one price One Fund you get exposure

to

374 stocks essentially every single

stock on the stock market this gives you

the ultimate exposure to everything and

ultimate diversification since you're

buying basically everything now when you

contrast this to the S&P 500 Fund in

this fund you will own some smaller

companies so if you do want small cap

exposure this is the fund that you would

want to buy if you do opt for this fund

there's no need to add an S&P 500 Fund

in addition to this because you would

just have overlapping Holdings and it

would be unnecessarily complex now as

long as the market goes up over time you

will be making money now since this fund

was created back in 2000 for Vanguard

the fund has returned 8.2% and in The

Last 5 Years it's returned 14.9% so in

that way it is the One Fund that you can

put your money in and just forget about

it entirely I hope that you don't

actually forget about it but that's the

entire gist is that you can kind of just

let it kind of go on its own and it's

passively managed and therefore your

money grows in the background while you

do other things but I do think that

there is another index fund that we

should cover in today's video and that

is number one

vfiax and the ETF version of this

particular fund is sticker symbol vo if

you've been watching my channel you've

probably seen me talk about this one it

is the Vanguard start S&P 500 Index Fund

and in terms of all the index funds out

there I think it is the gold standard

the S&P 500 Index is Diversified it has

investments in over 11 different

Industries with not a single sector

being more than 30% of the waiting in

terms of vfiax it has an expense ratio

of 0.04% so again that's very cheap the

average expense ratio by the way if you

didn't already know is around 63% to 74%

for many mutual funds out there so it's

good to note that this one is very

reasonable now if you do remember from

earlier fnilx the Fidelity zero Index

Fund also mimics the S&P 500 but I

actually prefer the Vanguard one because

this one in particular is actually

tracking the index and it's not just

being like close enough or trying to

mimic the Holdings and I personally

really enjoy that in terms of the

Holdings itself this particular Index

Fund is weighted by market

capitalization so it invests

proportionately into the company's based

on how big those companies are so that

means right now this fund owns a lot of

The Magnificent s so micros roft Apple

Nvidia Amazon meta Google are all at the

top of the list of Holdings in terms of

the fund returns since Inception it has

averaged about 7.97% and in the past 5

years it's done pretty well at 15.76%

now again just because this is a

Vanguard index fund you will need

probably $3,000 minimum to invest but

you can always choose the ETF version

which is ticker symbol vo and that's

what many people will probably opt for

so again if there was one index fund

that you could probably invest in for

the rest of your life I'd probably

choose between ticker symbol vo or vti

today those are the S&P 500 or the total

stock market index index funds but there

are always going to be funds for

different people and their preferences

and just because these funds have

performed well over the past three five

10 years it doesn't mean that they are

going to continue that way still though

I like my chances of investing in an

index as a whole rather than investing

in a bunch of individual stocks again if

you want that free stock from Weeble

worth at least 50 bucks when you deposit

$500 check the link down below and then

let me know what questions you guys have

in the comments and if you are

interested in another video for

investing make sure to check out my

Investing For Beginners video right here

it is really good and packed with a

bunch of information thank you for being

here I'll see you guys in the next one

all right peace

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