Quote:
Originally Posted by retiredguy123
Note that individual stocks are not like mutual funds. You can transfer specific stocks from one broker to another and there is no taxable event. But, if you sell the Vanguard S&P 500 index fund and substitute the Fidelity S&P 500 index fund, it is a taxable event, even though the two funds are very similar in the stocks they contain. That is why both companies allow you to hold the other company's funds in their portfolio.
|
Thanks, retired guy123. I wondered how that works. Makes sense from a marketing standpoint. Vanguard is so famous for Bogle’s long ago wide implementation of index funds that by making some Vanguard available, Fidelity investors can stay put and still own a Vanguard.
I have been having a little fun (yes, I said fun.
) looking at the Fidelity Select Index Funds — something for everybody there.
I was also rather intrigued to see a category called “Disruptive Funds”….. maybe those should be called FOMO Funds.
Psychologically speaking, Disruptive Funds could provide a way to gamble on the future of innovation — scary as some of that can be — without taking a big gamble on an individual stock. There are disruptive funds that are select and there is at least one that includes all types of innovation.
I am not the type of investor who would put a lot of money into “new fangled” stocks, but might have to put a few bucks into one of these disruptive funds — and I do mean a few bucks, very few, just to have some fun. (I do find the word ‘disruptive’ to be a bit disconcerting though.
)
I know a guy who lost his shirt and probably his pants by throwing a lot of money into crypto. He was retired — “was” is the operative word there.
Boomer