Whats the difference in risk factor between ETF's and Index funds? What
would you choose?

On Tue, Jan 29, 2019 at 2:13 PM Bill Prince <[email protected]> wrote:

>
> Playing the stock market is tough for the experts because they don't
> really know what's happening. You can take their advice, and just be one
> more step behind them. Buying indexes gives you the collective wisdom of
> the entire market (whichever one the index tracks). Most of us do not have
> them time or patience or resources or luck to be successful trading
> individual stocks.
>
> --
> bp
> part15sbs{at}gmail{dot}com
>
>
> On Tue, Jan 29, 2019 at 12:57 PM John Osmon <[email protected]>
> wrote:
>
>> On Tue, Jan 29, 2019 at 09:37:09AM -0600, Lewis Bergman wrote:
>> > Indexes do well. You get the benefit of a pretty well managed fund but
>> > without the high costs. All those indexes add and remove stocks
>> regularly
>> > which keeps their performance generrally marching upward.
>>
>> Yep.  If you get into the math of portfolio management it becomes pretty
>> obvious that a random smattering of diverse stocks performs (on average)
>> at least as good as the market as a whole.  While picking stocks has
>> higher volatility -- and thus more risk/reward.
>>
>> If you want to pick stocks rather based on something other than an
>> index, you need to be lucky, or have information few others have.
>>
>> To bring it back into networking, look up some of the HFT folks (Anton
>> Kapella here?).  Geting a few millisecond advantage of information can
>> sometimes *BE* that "information few others have" and thus can
>> make/break transactions.
>>
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