tailieunhanh - The Elements of Investing by Burton G. Malkiel and Charles D. Ellis Dec 14, 2009_8

Tham khảo tài liệu 'the elements of investing by burton g. malkiel and charles d. ellis dec 14, 2009_8', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Keep It Simple is a convenient way to obtain the broadest diversification in a single fund. Investing in a Total World Stock Index Fund is a convenient way to obtain the broadest diversification in a single fund . . . like one-stop shopping. Well-diversified portfolios should have holdings of bonds as well as stocks. Again we believe that index funds provide the most efficient vehicle for individual investors to hold bonds. On the opposite page we list three bond index funds that are suitable investments. We believe that the funds listed here provide suitable exposure to the stock and bond markets. They can easily be purchased by calling the toll-free numbers listed or by visiting the web sites. Some investors will find that exchange traded funds or ETFs will be useful investment instruments. ETFs most are based on index funds trade like individual stocks. The two most popular ETFs are the QQQQs or cubes that track the NASDAQ 100 index and the Spyders ticker SPY which explains the peculiar spelling that track the Standard Poor s 500 stock index. Neither of these ETFs is as broad as we would like but fortunately new ones are __ 121 __ The Elements of Investing now available that track total stock market indexes in the United States and in the world. The table on the opposite page shows the menu of ETFs that we recommend. ETFs tend to have very low expense ratios and they can be more tax efficient than mutual funds because they are able to sell holdings without generating a taxable event. This could be an advantage for taxable investors. However brokerage commissions are charged on the purchase of ETFs and for small and moderate purchases these commissions can overwhelm those other advantages. No-load indexed mutual funds typically have no purchase fees. However if you are investing a lump sum as for example when rolling over an established plan such as an IRA an ETF may be an optimal choice. The Vanguard Total World ETF ticker VT