Question: a In Table note that there are two index funds

(a) In Table, note that there are two index funds based on the S&P 500 Index. Suggest a reason why Joshua should invest in one or the other, noting that the returns for the Vanguard 500 Index Fund slightly lagged the Fidelity Spartan Index Fund.
(b) Given that Joshua plans to invest $2400 annually for the next 25 years, which of the other two index funds (Vanguard Total Stock Market Index Fund or Vanguard Emerging Markets Stock Fund) would you recommend, and why?

Joshua Wickler, an automobile salesperson for the past ten years in Albuquerque, New Mexico is divorced and contributes to the support of his two children. He is interested in investing in mutual funds. Joshua wants to put $20,000 of accumulated savings into a stock index mutual fund and then continue to invest $200 monthly for the foreseeable future, perhaps using the money for retirement starting in about 25 years. Joshua has limited his choices solely to the index mutual funds listed in Table.

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  • CreatedNovember 26, 2014
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