Hi Friends,
I had a buddy telling me to stick to S&P 500 index funds as the Nasdaq index is lagging. Here is the one week chart:
I agree the Nasdaq index has lagged, but only in the last couple of weeks. Before this, they have been outperforming other indices for years. Personally, I like the Russell 3000 index if you are looking at etf index funds as that is a more broad representation of the stocks and has more exposure to small/mid cap investments.
Either way, index funds are a great innovation as active managers have had a real time driving outperformance relative to their higher investment management fees. With the way investing has been going - auto investments for 401k and the popularity of index funds, it will be even harder for active managers to prove their worth.
Which index ETF would you buy today - Nasdaq, Dow Jones, S&P 500 Russell 2000, or Russell 3000?
Thanks for coming by,
Brian