How to pick the best index fund
#59: It’s hard to consistently beat the market as an investor…but it takes zero effort to match the market.Picking good index funds lets you match the market for near-zero cost.And matching the market produces some pretty good results. If you had invested – and held – $100k (and not a dime more) in a plain vanilla S&P 500 index fund in January 1990, today it would be worth over $1M.That’s 10x growth in 3 decades, or +7.7% annualized returns.That’s despite a 1990 recession, 2000-2002 dot com bust, 2008 financial crisis, and 2020 coronavirus.And all for zero effort.I dunno about you, but index fund investing sounds richer and a lot more laid back than active stock picking (which almost uniformly results in lower returns anyway).The key is picking good funds. What’s the best way to do this?This week, I talk with Jonathan Duong, CFA, founder of Wealth Engineers, a wealth management consultancy, about how to pick the best index funds to invest in.We discuss:Key differences between mutual funds vs. ETFs; between tracking, passive, and active fundsStep-by-step tips for evaluating an index fund: attributes, criteria, performance indicatorsRecommended online tools to search for and filter indexes and fund optionsHow fund expense ratios workSpecific names (and ticker symbols) of popular index funds for: total stock market, total bond market, government bonds, real estate, all-weather portfolioCheck it out here:https://hackyourwealth.com/best-index-fundsWhat are your favorite index funds, and why? Let me know by leaving a comment.Don't miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Resources mentioned in this episode:Wealth EngineersETF.comMorningstarETFdbETF ReplayMSCIThe CRSP IndexesUS total stock market: International stocks: Dividend-focused stocks: US investment grade bonds: US government and municipal bonds: International investment grade bonds: Real estate: Total market / all weather portfolio:Schedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.