49. Better w/ My Finance-Sis, Pt 2: Funds
08/23/24 • 35 min
2 Listeners
Continuing our "Better with my Finance-Sis" Mini-Series, in part 2 we talk all about Funds! But not just the different types of investment funds, also the difference between Passive and Active Funds.
Passive Funds vs Active Funds
What is a passive fund?
Passive funds usually have lower expense ratios, with a more simplified investment strategy and less involvement of fund managers (or they can also be managed by computers).
They do still follow a benchmark and aim to deliver returns with that benchmark, and are still subject to 2 important items we need to cover called: expense ratio and tracking error.
- Tracking Error Defined: Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked.
- Expense Ratio Defined: The expense ratio is how much of a fund's assets are used towards administrative and other operating expenses. Because an expense ratio reduces a fund's assets, it reduces the returns investors receive.
What is an active fund?
Active funds typically feature higher expense ratios, attributed to the fund manager's in-depth research, analysis, and management efforts.
Funds We Discuss:
- Money Market Funds
- Mutual Funds
- Target Date Funds
- ETFs - Exchange Traded Funds
- Fixed Income Funds
✨ Follow Jacey Saige on TikTok and Instagram ✨
✨ Follow Jess Inskip on TikTok and Instagram ✨
✨ Follow Jessie DeNuit on TikTok and Instagram ✨
Still Have More Questions or a Comment?
🙋🏾♀️🙋🏻🙋🏼♀️🙋🏽♂️🙋Holla @ us on:
Ask Us a Question, Leave a Review, Follow, Subscribe:
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👀 YouTube Channel
✨ Jess Inskip: TikTok Instagram
✨ Jessie DeNuit: TikTok Instagram Funny Finance Shirts and Merch
About Us 🌚🌞 Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective. Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...
Continuing our "Better with my Finance-Sis" Mini-Series, in part 2 we talk all about Funds! But not just the different types of investment funds, also the difference between Passive and Active Funds.
Passive Funds vs Active Funds
What is a passive fund?
Passive funds usually have lower expense ratios, with a more simplified investment strategy and less involvement of fund managers (or they can also be managed by computers).
They do still follow a benchmark and aim to deliver returns with that benchmark, and are still subject to 2 important items we need to cover called: expense ratio and tracking error.
- Tracking Error Defined: Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked.
- Expense Ratio Defined: The expense ratio is how much of a fund's assets are used towards administrative and other operating expenses. Because an expense ratio reduces a fund's assets, it reduces the returns investors receive.
What is an active fund?
Active funds typically feature higher expense ratios, attributed to the fund manager's in-depth research, analysis, and management efforts.
Funds We Discuss:
- Money Market Funds
- Mutual Funds
- Target Date Funds
- ETFs - Exchange Traded Funds
- Fixed Income Funds
✨ Follow Jacey Saige on TikTok and Instagram ✨
✨ Follow Jess Inskip on TikTok and Instagram ✨
✨ Follow Jessie DeNuit on TikTok and Instagram ✨
Still Have More Questions or a Comment?
🙋🏾♀️🙋🏻🙋🏼♀️🙋🏽♂️🙋Holla @ us on:
Ask Us a Question, Leave a Review, Follow, Subscribe:
🔗All Market MakeHer Links
👀 YouTube Channel
✨ Jess Inskip: TikTok Instagram
✨ Jessie DeNuit: TikTok Instagram Funny Finance Shirts and Merch
About Us 🌚🌞 Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective. Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...
Previous Episode
48. Better W/ My Finance-Sis Mini-Series, Pt. 1: Stock Market Essentials
🔮 Introducing a new mini-series with our Gen Z "finance-sis" Jacey Saige. It's Jessie DeNuit's turn to teach how the stock market works while Jessica Inskip makes sure she's not leading Jacey astray.
In part 1, we talk about why we invest and try to simplify how the stock market works, as best as possible without too many tangents. 🙃
✨ Follow Jacey on TikTok and Instagram ✨
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Get Your Free eBook: The Stock Market Explained
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👀 Watch us in action on our YouTube Channel 👀
About Us 🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend who is a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We believe that investing is for everyone and that's why we break down complex investing topics (from "Her" perspective), show you free tools/resources on our podcast, and offer a ton of free educational content on our website!
--- Support this podcast: https://podcasterAsk Us a Question, Leave a Review, Follow, Subscribe:
🔗All Market MakeHer Links
👀 YouTube Channel
✨ Jess Inskip: TikTok Instagram
✨ Jessie DeNuit: TikTok Instagram Funny Finance Shirts and Merch
About Us 🌚🌞 Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective. Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...
Next Episode
50. SMU: NVDA Earnings, Market Participation & Fed Expectations
Stock Market Update (SMU)
Let's discuss and demystify the recent volatility in the stock market, NVDA earnings, Jackson Hole highlights including rate cuts, and the dreaded "R" word (recession). 🔮
"If the Mag 7 is coming down, and the other 493 are participating, that is a recipe for sideways action."
~Jess Inskip
Who Are The Magnificent 7?
Alphabet (GOOGL; GOOG), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), NVIDIA (NVDA), and Tesla (TSLA)
NVDA is the Taylor Swift of the Stock Market 🤡
Nvidia surpassed earnings, but saw its stock price decline 6.5% today. There's a supply issue, not a demand issue here. And just like there was a let-down for Swifties when Taylor didn't announce Reputation TV, just like Nvidia didn't meet expectations of the market and there was a let-down. But we're still betting on Taylor Swift, so take that correlation how you will (not advice). 😉
The Broadening: Group Participation in the Class Project
Earnings growth is now happening in the other 493 stocks of the S&P 500, indicating a broadening of the market. Check out our episode: What Is Market Breadth (Ep. 45).
Fed (Papa) Powell Finally Gonna Cut Rates 🙌
The recent Jackson Hole meeting indicated that a rate cut is likely, with Fed Chair Jerome Powell focusing on the labor market and the need to avoid further pai
Ask Us a Question, Leave a Review, Follow, Subscribe:
🔗All Market MakeHer Links
👀 YouTube Channel
✨ Jess Inskip: TikTok Instagram
✨ Jessie DeNuit: TikTok Instagram Funny Finance Shirts and Merch
About Us 🌚🌞 Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective. Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...
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