Ford Motor Co. > $20 mark for the first time in 2 decades

[RickMachE]

Exchange traded funds are passively managed.

Mutual funds are actively managed.

Just one of many small technical terms that can get confusing.

Index mutual funds are not actively managed.

An example of an index mutual fund is Vanguard Total Stock Market Index Admiral - https://investor.vanguard.com/mutual-funds/profile/vtsax It has an expense ratio of 0.04%.

An example of an actively managed mutual fund would be Vanguard Primecap - https://investor.vanguard.com/mutual-funds/profile/VPMCX It has an expense ratio of 0.38%, i.e. 9.5 times as high as the not managed index fund.

Some mutual funds sold by other companies may have expense ratios over 1%, plus front or back-end loads, plus advisors taking a percentage. Over a period of 30 years, this makes a huge difference in your returns.

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[ab13]

I'm considering buying into the Rivian IPO today, but I've been burned buying in early at IPOs before (I'm looking at you CHPT). I have a play account that I use for day or swing trading that is completely separate from my 401k and Vanguard accounts. Kinda thinking I might throw 10k at it and see what happens. I paused on RBLX when I could have bought at $65 and look where it is now.

I think aside from Tesla, Rivian and Lucid will do well over time. The market so far seems to think so too. Since Rivian has Amazon orders, they have demand. The charging business is too unpredictable and really doesn't make money.

I ended up getting only a few Rivian shares allocated to me. I was curious about the process.

 

[BalsaDust]

Sorry, we are all full here in the south. Stay up there and keep shoveling the snow. It provides us with entertainment when we watch the natl news casts. JK LOL!!!

Now you have me looking at places in Georgia! wife hates Florida and we will most likely end up in S. Carolina (need me a good Hurricane!)

 

[Mach1E]

Index mutual funds are not actively managed.

An example of an index mutual fund is Vanguard Total Stock Market Index Admiral - https://investor.vanguard.com/mutual-funds/profile/vtsax It has an expense ratio of 0.04%.

An example of an actively managed mutual fund would be Vanguard Primecap - https://investor.vanguard.com/mutual-funds/profile/VPMCX It has an expense ratio of 0.38%, i.e. 9.5 times as high as the not managed index fund.

Some mutual funds sold by other companies may have expense ratios over 1%, plus front or back-end loads, plus advisors taking a percentage. Over a period of 30 years, this makes a huge difference in your returns.

Splitting hairs here, but that mutual fund is actively managed. They even explain it under the “portfolio & management” tab who manages it and what the goals are. But either way, by definition, mutual funds are actively managed and ETFs are passively managed.

Where it gets more confusing are the “index mutual funds” like the ones you’re talking about not to be confused with an “indexed ETF.”

The indexed mutual funds “seek to track an index” but with some active management while an indexed ETF tends to be identical to the index.

The fund also available as a passively managed ETF (also at the top of your link).

Here is the mutual fund description from your link;
“
Management
Firm Description
Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world’s largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard’s Equity Index, Quantitative Equity, and Fixed Income Groups. Rodney Comegys, Principal and global head of Vanguard's Equity Index Group, is responsible for all equity index funds. The Equity Index Group manages indexed equity portfolios covering U.S. and international markets. It has developed sophisticated portfolio construction methodologies and efficient trading strategies that seek to deliver returns that are highly correlated with target portfolio benchmarks. The group has advised Vanguard Total Stock Market Index Fund since 1992.
Vanguard Total Stock Market Index Fund seeks to track the investment performance of the CRSP US Total Market Index, which represents approximately 100% of the investable U.S. stock market and includes large-, mid-, small-, and micro-cap stocks regularly traded on the New York Stock Exchange and Nasdaq. The fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics. The experience and stability of Vanguard’s Equity Index Group have permitted continuous refinement of techniques for reducing tracking error. The group uses proprietary software to implement trading decisions that accommodate cash flow and maintain close correlation with index characteristics. Vanguard’s refined indexing process, combined with low management fees and efficient trading, has provided tight tracking net of expenses.”

 

[All Hat No Cattle]

Individual stock picking is not for everyone, it takes work to pick and stay with winners.

But that is where the money is.

For example, Ford picked Rivian as an investment in 2019, buying about $1.2 Billion worth of Rivian, in total.

As of today, Ford owns 102 million Rivian shares, and right now, Rivian is at about $101 a share. That comes out to just over $10 Billion.

In 2 years. Do the math.

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