Vanguard Funds

by Alex

Vanguard is a company that is structured as a mutual company. It is owned by funds that are managed by the company, so therefore is owned by the customers. Vanguard offers 2 different kinds of classes of most of its funds; investor, and admiral shares. Admiral shares have lower expense ratios, but have a much higher minimum investment, from 10-100 thousand dollars. The Vanguard Group was founded by John C. Bogle in Malvern, Pennsylvania in1975. Now, the AUM is upwards of $5 trillion.  The current CEO is Tim Buckley, and the current Chairman is F. William McNabb III. If you are looking to invest in a vanguard fund, the best one would be VI TAX, with an overall rating of A+ and a risk grade of C+… so it must be a good investment. Furthermore, it is recommended that you invest in the VTI, which has the lowest fee on a fund. To sum it all up, the Vanguard Group is a multitrillion dollar company, and is a very good company to invest towards.

All information acquired from;

 https://www.thestreet.com/topic/1258/best-vanguard-funds.html

https://en.wikipedia.org/wiki/The_Vanguard_Group

Index funds

by Carol-Anne

An index fund is essentially a mutual fund that invests in the stocks that are the basis of a well-known stock or bond index. To put it in simpler terms, it is a list of investments.   It is wise to choose an index fund because after funds are made to pay their annual management fee of about 1%.  Most of the funds managers cannot beat their fund’s benchmark, however; when it comes to Index funds, they usually carry a very low fee which is usually 0.02% per year.  Which is a lot less than the other fees for the competitors.  As well as, they are reliable when it comes to delivering the market’s average performance.  In other words, by aiming for the average; you actually have a better chance at beating the competing investors.  It is most likely that when you invest in the index funds, you will not fall below average and keep a somewhat steady market income. 

https://www.investopedia.com/terms/i/indexfund.asp