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How does INDEX differ from RSP?

STB65
in Fund Discussions
It has more letters and it costs slightly more .ER .25 vs .2
And I guess you won't foolishly trade it more than once a day.
It does cost more to invest in at TDA - a "transaction fee fund"
I'll check back in a few days to see if the long/old timers here have helped me out (assuming they can tell where I came in).
BTW, Nakomis (to recall a fund mentioned in passing in the commentary this month) was a positively recommended fund here, once upon a more naive (one can only hope) time.

Comments

  • Old_Skeet
    edited June 2018
    I'll let Mr. Snowball do the heavy lifting in responding to your question? How does the Index differ from RSP?

    https://www.mutualfundobserver.com/2018/06/index-funds-sp-500-equal-weight-index/
  • David_Snowball
    (nods) Nakoma Absolute Return was a learning experience for me. Not a disaster, not a fund that ever lived up to its promise. I trusted too much in the fact that the Wisconsin folks trained excellent managers and had some success with their hedge fund, and demanded too little by way of a track record in a 40-Act fund. I haven't repeated that mistake, though the task of finding new mistakes to make each money is exhausting.

    INDEX is, indeed, the second-cheapest option for accessing EWI and, by reasonable standards, quite cheap. The managers understand the importance of price in this arena and will, I suspect, try to lower fees to regain the #1 spot. Right now that's not economically possible but with continued steady, and perhaps rising, inflows, that might change.

    Part of the attraction of the fund is the opportunity it provides to consider alternatives to the trillions assigned to a single index; EWI might or might not make more sense for an investors than SPX, but you at least need to think through the implications of your choices.

    For what that's worth,

    David
  • BenWPBenWP
    @David: Do I detect a whiff of Iowa vs. Wisconsin disdain in your comment? I think you’re a transplant to the mid west, as am I, so the them vs. us (here it’s MSU vs. UM and Michigan vs. Ohio) is probably an acquired attitude. I’m a Yankee, so I instinctively look down on the 110,000 fans who pile into Michigan Stadium on a given Saturday even though I’m a rabid sports fan.
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