Stock Indices & Index Fund Investing

Index funds are some of the most popular investment vehicles around, and yet few fully understand how indices work. So today, let's take a moment to understand what constitutes an index, and how we can use them to invest.
Intro/Outro Music: www.bensound.com/royalty-free...
Episode Music: freemusicarchive.org/music/Pod...
DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.

Пікірлер: 93

  • @KurikuShoTto
    @KurikuShoTto4 жыл бұрын

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    @pongop

    2 жыл бұрын

    So true! I wish I had found these earlier videos when I started investing a couple years ago, but now they are helping me gain clarity and fill gaps in my knowledge of the basics.

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    @kelador803 жыл бұрын

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    @thefairplayer4 жыл бұрын

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    @francisco-un6mf

    4 жыл бұрын

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    @aahanbotadkar9071

    4 жыл бұрын

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    @edgarz7330

    4 жыл бұрын

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  • @transientcylon
    @transientcylon3 жыл бұрын

    I never knew about the weighting methods. Thank you for teaching me something new. Good to know as all my investments are index funds.

  • @lloydaurion-gaming46
    @lloydaurion-gaming462 жыл бұрын

    I’m studying accounting as my degree, but I enjoy learning about the stock market and financial derivatives. I’ve thought about trying for the CFA in the future. Your vids are super helpful and I quite enjoy it

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    @route66readymix454 жыл бұрын

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    @ghattassaliba97165 жыл бұрын

    i love this channel and this was my first comment on youtube since it was created and it was for you! keep it up brother.

  • @pablouribe1522
    @pablouribe15222 жыл бұрын

    This mini series about investing is great! Every video you learned something new!!

  • @rightpa
    @rightpa5 жыл бұрын

    Very well done. Please do a video on mutual funds vs index funds for retirement investing.

  • @aL3CnR
    @aL3CnR4 жыл бұрын

    i had an exam in this, instead of watching 2hour recorded videos on classroom i watched this. GREATJOB

  • @3Elliot3
    @3Elliot35 жыл бұрын

    Nice work, thanks!

  • @seankim2743
    @seankim27432 жыл бұрын

    Richard, your videos are educational and entertaining. Thanks for this.

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    @NickBotha5 жыл бұрын

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    @brandonliao4083 жыл бұрын

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    @PeetersDani4 жыл бұрын

    This channel really helps me out with investing! Thanks man

  • @cafemm
    @cafemm5 жыл бұрын

    great vid, thanks

  • @FinanceDaily
    @FinanceDaily6 жыл бұрын

    Love the animation!

  • @koolio143
    @koolio1433 жыл бұрын

    Another awesome video as always Richard! Thanks

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    @alejandraroto90843 жыл бұрын

    You're amazing thank you so much for what you do!!

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    @zubochonk92053 жыл бұрын

    Currently my favorite investing channel now.

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    @marc-antoinelandry33443 жыл бұрын

    The very best explanations thank you!

  • @nancysmith9487
    @nancysmith94874 жыл бұрын

    Thank yous for sharing.... Appreciate your help

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    @ksaisko3 жыл бұрын

    What's really impressive is how he throws the plate with the bagel the same way at the beginning of every videos.

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    @ThePlainBagel

    3 жыл бұрын

    It takes a lot of practice

  • @LearnWithMike
    @LearnWithMike4 жыл бұрын

    Awesome thanks for this education

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    @pran100003 жыл бұрын

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    @omodeeable20005 жыл бұрын

    i love this

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    @MrLeo6253 жыл бұрын

    Great channel, I wish you taught this in my town

  • @adamparagi8039
    @adamparagi80393 жыл бұрын

    Fantastic video! Thank you! Nonetheless one thing I do not understand. What is a Class A, C, D, H, L... index fund? What do they mean at the same fund, which one to pick? I am looking forward to your reply :)

  • @craiglord636
    @craiglord6366 жыл бұрын

    I'm a journalist, do you want to team up to make the Lord-Coffin Index? Or Lord-Bagel. Whichever you prefer.

  • @ThePlainBagel

    @ThePlainBagel

    6 жыл бұрын

    Hell ya! Let's do both!

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    @ethanlai1044

    4 жыл бұрын

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    4 жыл бұрын

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    @Dxnoir

    3 жыл бұрын

    I would happily invest my retirement.

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    @InvestOrama5 жыл бұрын

    I'm adding this to my playlist about the building blocks of finance

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    @RajuyCh-ug9ok

    4 жыл бұрын

    Hello would you like to share the playlist

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    @chaosrider1003 жыл бұрын

    Excellent!

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    @paultubbs35105 жыл бұрын

    You're awesome. Just saying

  • @MatrixCoder01
    @MatrixCoder015 жыл бұрын

    eye opening

  • @InvestOrama
    @InvestOrama5 жыл бұрын

    Very good stuff. Just subscribed. Indices are taken for granted but they shouldn't. We are also exploring the topic on our channel

  • @ga20904
    @ga209043 жыл бұрын

    Do you have a video on how to review an Index fund/ETF tracking error and why this is important

  • @charlesatlas77
    @charlesatlas77 Жыл бұрын

    Good video! Can you do one on Traditional IRA vs Roth IRA (tax benefits, limitations, etc.)

  • @davidcarson7855
    @davidcarson78554 жыл бұрын

    one thing I like about Vanguard is that their active funds charge 25 basis points and many of their index funds are less than 5 basis points and their expensive index fund are less than 15 basis points

  • @earthling_parth
    @earthling_parth3 жыл бұрын

    Richard, please add a tag for "What are Index Funds/ETFs" in video description. This video does not show up for a YT search for "What are index funds etfs?"

  • @Doofball3
    @Doofball35 жыл бұрын

    Great job.

  • @ADDthroughmusic
    @ADDthroughmusic5 жыл бұрын

    How about the total market index fund?

  • @ThePlainBagel

    @ThePlainBagel

    5 жыл бұрын

    ADDthroughmusic a total market fund has small, medium and large caps stock, so it’s intended to reflect all types of companies in the specified market

  • @ravindertalwar553
    @ravindertalwar5532 жыл бұрын

    Great excitement

  • @iLikeMyOwnPosts
    @iLikeMyOwnPosts2 жыл бұрын

    This dude pretty much looks exactly like what I think a guy talking to me about good investments would look like.

  • @andreslozano901
    @andreslozano9013 жыл бұрын

    Whhich is the most diversified index? Nasdaq, SNP500, Rusell 2000? Please help!!! I need to know this

  • @cmkar1013
    @cmkar10133 жыл бұрын

    Hi, my question is that where is the money going when we invest in an Index Fund...???

  • @justannpc1866
    @justannpc18663 жыл бұрын

    Newbie here. Do indices( specifically the S&P500, Dow, Nasdaq) also take into account dividends or is it just capital appreciation?

  • @user-ih3oc4xf1h
    @user-ih3oc4xf1h4 жыл бұрын

    At 6:23, the total return rate is wrong, it should be +.36 (I did some calculation and -.39% is what I got when I mistakenly used Cap 1 Column as the share ratio, LOL)

  • @santiagop.levrino1756
    @santiagop.levrino17563 жыл бұрын

    eres la neta tio!

  • @behrensf84
    @behrensf845 жыл бұрын

    If there are only about 4000 stocks in the USA? Why can you track them all?

  • @darthvade

    @darthvade

    5 жыл бұрын

    The Wilshire 5000 Index

  • @jz4461

    @jz4461

    5 жыл бұрын

    It should be noted that most of the market capitalization is captured in an index like the S&P 500, so there shouldn't be much of a change if that's the benchmark vs the Wilshire 5,000.

  • @CocolinoFan
    @CocolinoFan4 жыл бұрын

    So if the S&P 500 is an index not an ETF? Then when I buy S&P500 at 3000$ what am I actually buying?

  • @CrazyMadMan71

    @CrazyMadMan71

    4 жыл бұрын

    The S&P 500 is indeed an index. You don't buy the S&P 500 outright, you buy an ETF (or a mutual fund) that mimicks the chosen index (ie it holds all the companies in the index, usually cap-weighted). Such ETFs are VOO, SPY and IVV, all S&P500 ETFs that trade in USD.

  • @rossfriedman6570
    @rossfriedman6570 Жыл бұрын

    Someone said there was a bad decade in indexes starting in the seventies. Would hedge fnds have been better then?

  • @phizzhead53
    @phizzhead53 Жыл бұрын

    3:09 do they have a becky etf

  • @kw1784
    @kw17843 жыл бұрын

    who pays the people who maintains and manages the indices?

  • @shannonparkhill5557
    @shannonparkhill55573 жыл бұрын

    why cant you make an index of every single stock on the market to indicate the whole market?

  • @GanNing221
    @GanNing2215 жыл бұрын

    @The Plain Bagel What is your take on Vanguard Total Stock Market Index Fund (VTSMX or VTSAX) vs. Vanguard S&P 500 Index Fund? Hypothetically speaking, if a "know-nothing" investor would to start today, which index fund is sensible?

  • @alex2143

    @alex2143

    4 жыл бұрын

    I recommend doing your own research, because it’s your money and you should know the choices that you make and why you make them. A total stock market index fund is more diversified, and that may be beneficial. It is noteworthy that the total stock market funds you’ve named are still only US stock market index funds and do not expose you to foreign markets. An ETF tracking something like the MSCI World index or the MSCI All Cap World Index also includes stocks from foreign developed markets (and foreign emerging markets in case of the latter). I invest in an ETF that tracks the MSCI World index, for instance. Other people may make other choices.

  • @SKITTLELA
    @SKITTLELA3 жыл бұрын

    Dow Jones has always seemed...underwhelming to me. 30 stocks doesn't seem like near enough, no matter how it's sliced. Similaryly, I've never understood why a total US market index isn't the most popular over the S&P 500.

  • @guywithglasses5309

    @guywithglasses5309

    2 жыл бұрын

    I agree if you ever find a reason why people dont prefer a total us market index over the s&p 500

  • @SKITTLELA

    @SKITTLELA

    2 жыл бұрын

    @@guywithglasses5309 I think it's just because it's "simpler" and has a catchy name. Plus S&P is incentivized to have as many people use it as possible so they can charge for its use in index funds, etc. I really do think media and other places should use the Total US Market as the standard, however, and not even worry about the Dow or Nasdaq.

  • @JamesJoe-uk8pj4215
    @JamesJoe-uk8pj42154 ай бұрын

    I learned that the stock market was a rich man's game (yes, grandparents lost it all back then and preached that forever) but I've been around long enough to really taste how great it can be. To be profitable, with inflation at 6.1% These are surely desperate times, but in my opinion, there is no market condition that a good financial advisor cannot navigate, especially those that have existed since the crisis of 2008 and before.

  • @Vinnie-ng3zx643

    @Vinnie-ng3zx643

    4 ай бұрын

    Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.

  • @user-tb8kn3nh4e

    @user-tb8kn3nh4e

    4 ай бұрын

    Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.

  • @user-yx8fo4ni7e

    @user-yx8fo4ni7e

    4 ай бұрын

    I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

  • @user-tb8kn3nh4e

    @user-tb8kn3nh4e

    4 ай бұрын

    STEPHANIE KOPP MEEKS she is whom i work with look her up..

  • @user-yx8fo4ni7e

    @user-yx8fo4ni7e

    4 ай бұрын

    Thanks for sharing, I just looked her up on the web and I leave her a message.

  • @sethjones4916
    @sethjones49164 жыл бұрын

    If you had over $100,000 in cash, do you think that an idex fund would be a good way to profit with this current market decline? I'm thinking that some of these indexes might be more responsive to price on a market recovery .... more so, perhaps, than buying a great company that hasn't been hit too hard by the crash. Do you have any thoughts on this, or can you recommend any indexes that would probably be more responsive to the movement of the market as a whole?

  • @victoronufreiciuc5485

    @victoronufreiciuc5485

    4 жыл бұрын

    S & P 500 would be a good start. My advice: don't buy just one company, buy 500. You might get a smaller return but at least it will be safer. I recommend you to learn about psychology when dealing with investing, too many factors can make you act irrational and lose all the money. Good Luck!

  • @alex2143

    @alex2143

    4 жыл бұрын

    Agreed with the other commenter, but I would add that trying to time the market usually doesn’t work, and you should invest only with money that you can miss for the long term (>10 years). If you’re worried about getting in at one very bad moment, you could spread it out over 10-12 months, investing 10k each month, for instance (known as dollar cost averaging). Statistically, that loses out to investing the lump sum at once most of the time, but the difference is not enormous. Over the long term, having at least part of your money in index funds is definitely a good idea. Some years, the stock market is up, and some years its down, but the overall trend is upwards.

  • @verveblack
    @verveblack2 жыл бұрын

    the music really distracts from learning. softer or not at all would be best

  • @blathetube1597
    @blathetube15974 жыл бұрын

    Taking your time to research how indices work sounds a little like studying the human anatomy before choosing a doctor.

  • @rivaldoriyanto7072
    @rivaldoriyanto70723 жыл бұрын

    hah index funds in my country cost lowest at about 1.59%. thats indo for you

  • @lutfifawzy9561

    @lutfifawzy9561

    Жыл бұрын

    The interest rate is different that US

  • @bingo567890
    @bingo5678902 жыл бұрын

    If you could slow down your speech your channel would be perfect

  • @jakel8627
    @jakel86273 жыл бұрын

    I find your channel to be too impartial. Loads of waffling but you never give firm advice or take a side in a debate. Have an opinion ffs, because some opinions out there are WRONG

  • @hapcheofficial
    @hapcheofficial Жыл бұрын

    good video, annoying music:)

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