I’ve really been looking into ETF’s and Index Funds. If these guys can beat most professional investors, and do so at lower fees, why wouldn’t someone choose them? There are some index funds for real estate, international value stocks, and all sorts of domestic stocks.
My biggest question is whether to invest via mutual funds (index funds) or as a stock (ETF – exchage traded fund).
Taxes and commission fees are the greatest issues: index funds automatically reinvest dividends into the fund. Not sure if ETF’s do so. Other issue is taxes; does one have an advantage over the other? Not sure.
A few I’m looking at: JKL, JKF, JKI, EFV, ITF, VGSIX, and the DFA value group (like DTMIX)
Ideally I’m thinking of a split ratio of real estate, domestic value, and international value stocks. A bit aggressive? Maybe. I’d also like to put in a portion using the little blue book method as well. The two companies I chose 10 months ago, (fdg, and dlx), are up 50% so far. Running a few more sets over this month, to be sure.