S&P 500 Index Fund review final

S&P 500 Index Fund review final

This is the final summary of the previous three posts of the S&P 500 index fund review. The data were collated based on the information available as of August 30th, from both free and personal paid services. I will briefly describe each point and conclude the post.

S&P 500 Index Funds

Market Capitalisation (Market Cap): It represents the total value of a company in the stock market. This value is calculated by multiplying the stock price by the number of shares issued. Funds don't directly represent a company's value, so they might have an adjusted market cap. But when discussing the three types of S&P 500 ETFs mentioned above, you needn't worry about the market cap. Personally, when looking at US stocks, I consider those with a market capitalization of over 1 billion dollars as small-cap stocks, which might be more volatile. This roughly translates to approximately 1.4 trillion KRW, but the exact amount may vary due to exchange rates.

Vanguard has the highest market cap, followed by SPY and IVV.

There are also S&P 500 index funds listed domestically. It's okay to invest in them, but do check their fees and fund sizes. Also, verify the experience level of the manager.

Overall Evaluation: This information was referenced from market consensus, so you don't need to take it too seriously.

Dividend Yield: While they offer similar yields, do note that the dividend yield changes annually.

RSI (Relative Strength Index) 14 days: When comparing S&P 500 ETFs, analyzing the RSI might not be very relevant. RSI is a technical analysis indicator used in stock, futures, and forex markets. It's crucial for those who make trades based on trading or timing. It calculates the rise and fall of prices over a typical period of 2 weeks, with values between 0-100. Over 70 suggests overbought conditions (potential price decline) and below 30 indicates oversold conditions (potential price increase).

Performance Over 1 year & 5 years: As they track the same index, there's not much difference in returns.

Beta Coefficient: This is a measure of risk and returns. It indicates how sensitive an individual stock or portfolio is to market-wide volatility.

Beta = 1: Moves with the market.

Beta > 1: More sensitive than the market.

Beta < 1: Less sensitive than the market.

Beta = 0: No correlation with market returns.

S&P 500 ETFs can be considered to move almost in line with the market.

Conclusion: If you are a long-term investor looking for a product with relatively high dividends and low fees, Vanguard's VOO might be a good pick. IVV also has low fees, so you might wonder why anyone would choose IVV or SPY. While I have limited experience with options and no experience with index options, SPY offers more flexibility for those who trade options. So, if you trade indices frequently or need options trading, SPY or IVV might be more suitable.

Personally, when I didn't know much about stocks, I bought SPY on impulse. Later, as I learned more, I got to know about Vanguard and Blackrock, and also about VOO and IVV. Lately, I have been investing more in VOO.

I plan to introduce funds that categorize S&P 500 stocks into themes like dividend stocks and growth stocks soon. I wish you all success in your investments.