Whats the best low cost index fund available? - ourluckydime

Whats the best low cost index fund available?

2009-10-10T05:25:41Z

We've all heard Warren Buffet's advice that if you're not an active investor, you should dump your money into a low cost index fund, effectively investing in the future of the market rather than of an individual company.

So what's the best low-cost index fund available on the market? How about internationally?

Answer by Dan for Whats the best low cost index fund available?

2009-10-10T06:41:57Z

Warren Buffet is a very bright man -- so I don't mean to come off as trying to pretend that I know more than him. But I don't think it's wise invest in anything you don't understand -- whether Warren Buffet says you should do it or not.

However, I do have a few points of advice:

Read up on what index funds are
If you're sold on index funds, then generally speaking I would suggest something like E*Trade's S&P 500 index. According to this article on fool.com, "The Vanguard S&P 500 fund has outperformed over 90% of all domestic equity mutual funds over the past three and five years (and a much higher number if you include bond and international equity funds)."

As a sidenote, I have always enjoyed reading Warren's 'Letters to shareholders'. They give a very interesting insight into his investing style and honesty.

Answer by SK Shan for Whats the best low cost index fund available?

2009-10-24T23:14:07Z

For international, consider VEU. This is an ETF that has the lowest expense ration. For domestic, cannot beat SPY ETF in terms of expense ratio.