5 Best Index Funds To Own for Life, According To TikToker Humphrey Yang
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Yaël Bizouati-Kennedy
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Financial guru and TikToker Humphrey Yang recently shared in a YouTube video a few index funds you can invest in which will help grow your wealth over time.
An index fund is “a type of mutual fund or exchange-traded fund (ETF) that aims to mimic the performance of a certain index,” according to Fidelity. And as Fidelity further noted, index funds can have different themes, such as focusing on specific sectors, on international markets, on domestic markets or on bond markets for instance.
Now, according to Yang, index funds are “one of the best methods to invest your money.”
“These are great for those of you that want a set it and forget it type of strategy and it’s even a strategy that legendary investor Warren Buffett swears by,” Yang said in the June 24th video. “That’s his primary recommendation. By simply contributing and investing regularly into these funds your wealth will grow over time.”
Yang also noted that this is a long-term investment, and not “some type of get rich quick type of thing.”
According to him, here are the five best index funds to build wealth.
1. Vanguard 500 Index Fund (VFIAX)
In terms of all the index funds, Yang said that this is “the gold standard.”
“The S&P 500 Index is diversified, it has investments in over 11 different industries with not a single sector being more than 30% of the weight.”
2. Fidelity Zero Total Market Index (FZROX) and Vanguard Total Market Index (VTSAX)
These are “total stock market index” funds, according to Yang. The Fidelity one does not have fees
Meanwhile, the “beauty” of Vanguard’s fund is that “for one price, you get exposure to 374 stocks — essentially every single stock on the stock market,” said Yang.
“This gives you the ultimate exposure to everything and ultimate diversification,” he added.
3. Vanguard Value Index Adm (VVIAX)
As Yang noted, this fund invests in stocks of large U.S. companies “in sectors that tend to grow at a slower pace than the broad market.”
“In short it’s less about growth and more about stability,” said Yang.
4. Vanguard Life Strategy Growth Fund (VASGX)
This fund has 80% stocks and 20% bonds.
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“The idea here is that it’s designed to give you some of the upside of stocks while giving you some fixed income via the bond holdings as well as some international exposure,” said Yang.
5. Fidelity Zero Large Cap Index (FNILX)
This index fund tracks the S&P 500 and as Yang noted, one of the main benefits of this fund is that according to its name it has no fees — most index funds carry some type of fee.”
