Talk of The Villages Florida - View Single Post - What would you invest in?
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Old 02-21-2022, 08:44 AM
retiredguy123 retiredguy123 is offline
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Quote:
Originally Posted by jedalton View Post
if you don't want to worry about watching the stock market all the time try VTI (Vanguard Total Stock Market Index Fund ETF).
3-Year18.73%
5-Year17.90%
10-Year14.70%
That is a good suggestion, but I prefer to use the Vanguard S&P Index Fund, not a total market ETF. The S&P 500 is only large companies, and a mutual fund is more tax efficient than an ETF because the investors do not buy and sell as often. So, the fund manager doesn't need to sell off stocks to raise cash and generate taxable gains. Some will point out that an ETF has lower fees but, with Vanguard, the difference is minimal. Also, the S&P 500 fund returns have been higher than the total stock market fund.

3 year, 26.03%
5 year, 18.43%
10 year, 16.51%