Vanguard Index Funds For Beginners | The Ultimate Guide
Vanguard Index Funds For Beginners: Index Funds are one of the easiest investments anyone can use to build wealth. Here is a complete step by step tutorial to Vanguard Index Funds for beginners. After watching this video you will have the knowledge to build your own portfolio and outperform the majority of professionals.
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⏰ Timestamps ⏰
00:00 Intro
00:42 What is an Index Fund?
07:34 Advantages of Index Funds
11:02 Why I Invest In Them
14:54 Vanguard Index Funds vs Competitors
16:47 Best Vanguard Index Funds
20:32 How To Buy Vanguard Index Funds
21:35 How To Build A Portfolio
24:12 Final Thoughts
📝 What is an Index Fund?
An index fund is a collection of different companies on a list you can put your money into that allows you to own portions to each of those companies within one purchase. An index fund is a type of mutual fund or exchange traded fund (ETF) that tracks the returns of a particular market index. A market index is a collection of securities (such as stocks or bonds) that represent a specific sector of a market or economy.
A popular index fund is the S&P 500 that is the top 500 publicly traded companies based in the U.S. and is a broad scope of the U.S. economy. On Vanguard, the S&P 500 Index can be bought through two ways: VOO (ETF) or VFIAX (Mutual Fund).
Why Invest in Index Funds?
1. Passively Managed:
The S&P Dow Jones Indices research study states that 93% of actively managed large cap funds (controlled by professionals) underperformed the S&P 500 index over a 20 year study.
2. Diversification:
If you only own singular stocks and one was to go bankrupt or collapse in share price, you could lose a significant amount. In comparison, with index funds (hundreds to thousands of companies), you would have much less risk to losing money.
3. Expense Ratio:
The cost to owning the fund which is much cheaper than purchasing actively managed funds since they charge much higher fees, that over the years will significantly impact your results.
Best Vanguard Index Funds:
🇺🇸 DOMESTIC 🇺🇸
1. Vanguard Total Stock Market (VTI/VTSAX)
Alternative:
Vanguard S&P 500 (VOO/VFIAX)
Vanguard Mid Cap (VO/VIMAX)
Vanguard Small Cap (VB/VSMAX)
2. Vanguard Large Cap Growth (VUG/VIGAX) - Alternative: SCHG or QQQ(M)
Click here to learn more: • Which Is The Best Growth ETF? (SCHG v...
3. Schwab US Dividend Equity ETF (SCHD)
Click here to learn more: • Top 6 Dividend ETFs To Buy & Hold For...
🌐 FOREIGN 🌐
4. Vanguard Total International (VXUS/VTIAX)
🏦 BONDS 🏦
5. Vanguard Total Bond (BND/VBTLX) - Alternative: Fixed income securities
Click here to learn more: • Certificate of Deposits (CDs) vs Trea...
Building A Portfolio (Generic Example For Age 30, Very Aggressive):
🇺🇸 DOMESTIC 🇺🇸
1. VTI/VTSAX: 50%
2. VUG/VIGAX/SCHG/QQQ(M): 20%
3. SCHD: 10%
🌐 FOREIGN 🌐
4. VXUS/VTIAX: 10%
🏦 BONDS 🏦
5. BND/VBTLX or Fixed Income Securities: 10%
Please note: This all depends on your financial position
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Disclaimer: This video contains links through which Danny Sully may be compensated when you click on or are approved for offers. The information in this video was not provided by any of the companies mentioned, and has not been reviewed, approved, or otherwise endorsed by any of these entities. The information provided in this video is accurate as of its posting date, though some of the offers mentioned may no longer be active.
