Investing in index funds Forum
Forum rules
Anonymous Posting
Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.
Failure to follow these rules will get you outed, warned, or banned.
Anonymous Posting
Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.
Failure to follow these rules will get you outed, warned, or banned.
-
- Posts: 432497
- Joined: Tue Aug 11, 2009 9:32 am
Investing in index funds
My firm requires that employees who invest in stocks get their trades approved by the firm before acting on them for insider trading concerns.
I’m thinking that general index funds like S&P 500 are pretty safe from insider trading concerns and probably easy to get cleared regardless of our client list.
But I’m wondering how firms (and SEC) generally view industry-specific index funds like index for pharma, tech, auto, etc.
They seem to be in between general market index and individual company stocks, so it looks like they could lean either way.
I’m thinking that general index funds like S&P 500 are pretty safe from insider trading concerns and probably easy to get cleared regardless of our client list.
But I’m wondering how firms (and SEC) generally view industry-specific index funds like index for pharma, tech, auto, etc.
They seem to be in between general market index and individual company stocks, so it looks like they could lean either way.
-
- Posts: 432497
- Joined: Tue Aug 11, 2009 9:32 am
Re: Investing in index funds
My firm, and I believe many others, allow you to buy funds with 30 or more stocks included without firm approval. You shouldn't be having to get S&P500 ETFs cleared unless your firm is truly wild.Anonymous User wrote: ↑Mon Jun 07, 2021 11:06 amMy firm requires that employees who invest in stocks get their trades approved by the firm before acting on them for insider trading concerns.
I’m thinking that general index funds like S&P 500 are pretty safe from insider trading concerns and probably easy to get cleared regardless of our client list.
But I’m wondering how firms (and SEC) generally view industry-specific index funds like index for pharma, tech, auto, etc.
They seem to be in between general market index and individual company stocks, so it looks like they could lean either way.
-
- Posts: 432497
- Joined: Tue Aug 11, 2009 9:32 am
Re: Investing in index funds
Thanks, that was really helpful because I hadn’t considered the number of stocks included in the fund. I’ll ask my firm to be safe but that makes me feel a lot better lolAnonymous User wrote: ↑Mon Jun 07, 2021 11:37 amMy firm, and I believe many others, allow you to buy funds with 30 or more stocks included without firm approval. You shouldn't be having to get S&P500 ETFs cleared unless your firm is truly wild.Anonymous User wrote: ↑Mon Jun 07, 2021 11:06 amMy firm requires that employees who invest in stocks get their trades approved by the firm before acting on them for insider trading concerns.
I’m thinking that general index funds like S&P 500 are pretty safe from insider trading concerns and probably easy to get cleared regardless of our client list.
But I’m wondering how firms (and SEC) generally view industry-specific index funds like index for pharma, tech, auto, etc.
They seem to be in between general market index and individual company stocks, so it looks like they could lean either way.
-
- Posts: 1801
- Joined: Wed Jan 30, 2019 7:34 pm
Re: Investing in index funds
They can raise legitimate insider-trading concerns and are generally shitty products to boot. You're paying a higher expense ratio to be less diversified. Just buy VT or something.Anonymous User wrote: ↑Mon Jun 07, 2021 11:06 amBut I’m wondering how firms (and SEC) generally view industry-specific index funds like index for pharma, tech, auto, etc.
- nealric
- Posts: 4390
- Joined: Fri Sep 25, 2009 9:53 am
Re: Investing in index funds
I can't personally think of a good reason to invest in sector index funds. Just put it into VTI and not worry about it.
Want to continue reading?
Register now to search topics and post comments!
Absolutely FREE!
Already a member? Login
-
- Posts: 432497
- Joined: Tue Aug 11, 2009 9:32 am
-
- Posts: 485
- Joined: Fri Dec 20, 2019 5:23 pm
- nealric
- Posts: 4390
- Joined: Fri Sep 25, 2009 9:53 am
Re: Investing in index funds
The international aspect of VT is a bit debatable. 8/10 of its largest holdings are U.S. anyways. But it works fine too.
-
- Posts: 311
- Joined: Sun Jan 22, 2012 1:32 pm
Re: Investing in index funds
Please put some thought into your investments before acting on this generic lame advice that is repeated ad nauseum on this forum. Doing some quick homework online will reveal that there a wide array of ETFs out there that can help you build a more diverse portfolio with better long-term potential.
-
- Posts: 1801
- Joined: Wed Jan 30, 2019 7:34 pm
Re: Investing in index funds
Any given basket of sector-specific (or other equity) ETFs is by definition less diverse than a total-market index, so that's obviously dogshit advice. And "better long-term potential" is meaningless unless you elaborate on what you mean by that.eastcoast_iub wrote: ↑Wed Jun 09, 2021 8:58 pmPlease put some thought into your investments before acting on this generic lame advice that is repeated ad nauseum on this forum. Doing some quick homework online will reveal that there a wide array of ETFs out there that can help you build a more diverse portfolio with better long-term potential.
-
- Posts: 1045
- Joined: Fri Mar 27, 2020 2:14 am
Re: Investing in index funds
Guy probably has some of those Dave Ramsey 15% annual return ETFs.The Lsat Airbender wrote: ↑Thu Jun 10, 2021 3:14 amAny given basket of sector-specific (or other equity) ETFs is by definition less diverse than a total-market index, so that's obviously dogshit advice. And "better long-term potential" is meaningless unless you elaborate on what you mean by that.eastcoast_iub wrote: ↑Wed Jun 09, 2021 8:58 pmPlease put some thought into your investments before acting on this generic lame advice that is repeated ad nauseum on this forum. Doing some quick homework online will reveal that there a wide array of ETFs out there that can help you build a more diverse portfolio with better long-term potential.
- nealric
- Posts: 4390
- Joined: Fri Sep 25, 2009 9:53 am
Re: Investing in index funds
It’s “generic” advice because it’s good advice. Even Warren Buffet tells individuals they should stick to broad market index funds.eastcoast_iub wrote: ↑Wed Jun 09, 2021 8:58 pmPlease put some thought into your investments before acting on this generic lame advice that is repeated ad nauseum on this forum. Doing some quick homework online will reveal that there a wide array of ETFs out there that can help you build a more diverse portfolio with better long-term potential.
Anything other than a broad market fund is by definition less diverse. It’s also almost certainly less of a long-term strategy due to sector rotations over time.
Can you beat a broad market fund? Maybe if you are lucky. You are statistically more likely to trail it. A big benefit of biglaw income is you don’t need to beat the market to accumulate a hefty nest egg.
- UnfrozenCaveman
- Posts: 474
- Joined: Thu Mar 21, 2013 10:06 pm
Re: Investing in index funds
Just buy VXX.
Register now!
Resources to assist law school applicants, students & graduates.
It's still FREE!
Already a member? Login