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Topic	Mutual fund recommendations?
captpackrat 02/16/21 11:56:52 AM #17:	JigsawTDC posted... This is all going a bit over my head. I don't know enough about stocks to want to risk a triple money/triple loss situation. Speaking of which, if anyone has any resources to educate myself I'm a good learner! I understand a lot of economic theory, but I don't know a lot about actual practical investing and saving. An Exchange Traded Fund (ETF) is like a mutual fund, in that it's a basket of stocks, bonds, gold bullion, foreign currency, or whatever, but it's traded like a stock. They're sometimes called "Spiders" after their original name, SPDR. Mutual funds usually have purchase fees associated with them or you're required to own them for a certain length of time before you can sell, and transactions usually only occur at close of business. ETFs trade like a stock, there's no fees (other than your usual stock trading fees charged by your broker), no time limit on ownership, and orders usually goes through in seconds when the market is open. The main difference is that mutual funds are intended for long term investment, usually 6 months or longer, while ETFs can be held for any length of time from minutes to years. SPY is a pretty good ETF for beginners. It's the oldest and largest, and it invests in every single stock in the S&P 500 index, so buying 1 share of SPY is like buying stock in 500 companies all at once. This lets you spread out your risk with a single purchase instead of having to actually buy stock in 500 individual companies. --- Minutus cantorum, minutus balorum, Minutus carborata descendum pantorum. <cite>captpackrat posted [p:950698802] in Mutual fun... [t:79295969]...</cite> <quote>JigsawTDC posted... </cite> <quote>This is all going a bit over my head. I don't know enough about stocks to want to risk a triple money/triple loss situation. Speaking of which, if anyone has any resources to educate myself I'm a good learner! I understand a lot of economic theory, but I don't know a lot about actual practical investing and saving.</quote>An Exchange Traded Fund (ETF) is like a mutual fund, in that it's a basket of stocks, bonds, gold bullion, foreign currency, or whatever, but it's traded like a stock. They're sometimes called "Spiders" after their original name, SPDR. Mutual funds usually have purchase fees associated with them or you're required to own them for a certain length of time before you can sell, and transactions usually only occur at close of business. ETFs trade like a stock, there's no fees (other than your usual stock trading fees charged by your broker), no time limit on ownership, and orders usually goes through in seconds when the market is open. The main difference is that mutual funds are intended for long term investment, usually 6 months or longer, while ETFs can be held for any length of time from minutes to years. SPY is a pretty good ETF for beginners. It's the oldest and largest, and it invests in every single stock in the S&P 500 index, so buying 1 share of SPY is like buying stock in 500 companies all at once. This lets you spread out your risk with a single purchase instead of having to actually buy stock in 500 individual companies. --- Minutus cantorum, minutus balorum, Minutus carborata descendum pantorum.</quote> ... Copied to Clipboard!
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