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El Kabong
Apr 14, 2004
-$10
I'm thinking about investing about $15,000 in Vanguard's Total Market Index fund (vtsmx) and read somewhere that an ETF might be a better option because of the relatively low expense ratio, which about half of VTSMX's. My concern is that Vanguards Total Market Index ETF doesn't mirror the mutual fund so I wouldn't be buying into exactly what I want.

Now, I'm not sure if that's true but I spoke to a Vanguard broker on the phone who said that they were similar but that one was more capitalized than the other and some other stuff I didn't quite understand which explained why their prices were not identical. VTSMX is ~$22; ETF is ~$46.

Is there an ETF I can buy that will mirror VTSMX, or am I just confused and the ETF I mentioned does just that? Or... should I just pay the extra .075% and get the mutual fund?

El Kabong fucked around with this message at 21:35 on Oct 20, 2008

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El Kabong
Apr 14, 2004
-$10
How would I go about figuring out the P/E average of the entire djia?

El Kabong
Apr 14, 2004
-$10

Dijkstra posted:

The most accurate way is to look here:

http://www.djindexes.com/mdsidx/index.cfm?event=showAvgStats

I believe this is updated monthly so look for it to update Monday or tomorrow afternoon.

Edit: It looks like yahoo quotes updates it monthly too. Eh.

That's pretty barebones info, and why is it only updated monthly? I'll do some more digging and see if I can find a better source. Thanks for looking, tho.

El Kabong
Apr 14, 2004
-$10
I was lucky enough (so far) to buy into VTI when it was around $39, and now that it's up to $45 or so I'm wondering if I should be taking those gains (or more?) out and putting it into something a little less volatile as this seems like absurd growth for what was a originally a long-term investment.

Is there any conservative investing strategy to use in this situation?

El Kabong
Apr 14, 2004
-$10

El Kabong posted:

I was lucky enough (so far) to buy into VTI when it was around $39, and now that it's up to $45 or so I'm wondering if I should be taking those gains (or more?) out and putting it into something a little less volatile as this seems like absurd growth for what was a originally a long-term investment.

Is there any conservative investing strategy to use in this situation?

Any advice? I kinda got skipped over last page and I hope it wasn't because there is no good answer :(

El Kabong
Apr 14, 2004
-$10

Don Wrigley posted:

My advice to you is to head over to the trading thread, this thread is for long term investing.

I take it your implying that the longterm investor stays in no matter how outrageous his short-term gains seem to be?

El Kabong
Apr 14, 2004
-$10

var1ety posted:

Timing the market is very risky since it could just as easily go up as down. The best we can do is try to maintain our desired asset allocation and hope for the best over the long haul.

Thanks, I guess that was what I was looking for. I don't have any special expertise in this field and based on my limited knowledge the ~15% gains, in roughly 2-3 months, seemed out of whack with normative results for a long-term investment.

I'll just let it sit.

El Kabong
Apr 14, 2004
-$10
Is there a downside to holding VBMFX as an ETF?

El Kabong
Apr 14, 2004
-$10

El Kabong posted:

Is there a downside to holding VBMFX as an ETF?

I need to buy one or the other soon, so if anyone knows why I shouldn't buy the ETF I'm all ears.

El Kabong
Apr 14, 2004
-$10
Thank you, that's good to know. I will stick to the bond index mutual fund.

El Kabong
Apr 14, 2004
-$10
Edit: NM.

El Kabong fucked around with this message at 19:12 on Jul 17, 2013

El Kabong
Apr 14, 2004
-$10
Would it be foolish to elect to have no withholding from my paycheck and invest the money instead?

If it's feasible, what investments would make sense?

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El Kabong
Apr 14, 2004
-$10

Guinness posted:

Yes it would be incredibly foolish because you will pay a 10% penalty for not withholding enough, not to mention that there is no guarantee that your investments increase in value before tax time.

Well, that's that then. Thanks.

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