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I see global all cap fund (Vanguard) a lot on this subreddit, which one do people mean?
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So after getting advice from the lovely people of UK personal finance, I've decided to open a pension account and go for the famous global all cap fund, and then...
ESG Developed World All Cap Equity Index Fund - Accumulation
FTSE All-World UCITS ETF (VWRL)
FTSE Developed World UCITS ETF (VEVE)
FTSE Global All Cap Index Fund Accumulation <-- I'm guessing this one?
Global Equity Fund - Accumulation
Global Equity Income Fund - Accumulation
What does accumulation mean?
I've also seen VWRL around, is that any good?
Top Comment:
Did a breakdown of the most common global trackers recently:
List of Vanguard funds with simple explanations of what they are, pros/cons and fees : UKPersonalFinance (reddit.com)
When people mention Global All-Cap they're referring to the one called "Global All-Cap". There's no trick there.
Can't see my USDC funds
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Good day
I used Raydium to sell SOL for USDC using Phantom Wallet.
It says "Success" but the USDC does not show a balance in my Phantom wallet?
Am I doing something wrong?
Top Comment:
You need to settle your USDC on the Raydium dex. (Bottom right hand corner of the USDC/Ray trading page)
Fed funds futures traders now see a 21% chance of a 75-basis-point hike in June
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saw this on reddit and thought it was interesting.
original post
Source Marketwatch.
Friday’s consumer-price index report for May — which showed the annual headline U.S. inflation rate climbing to 8.6% in May, with few signs of having peaked — is boosting the chances of a jumbo-sized rate increase by monetary-policy makers as soon as next week, and eliciting dire warnings that central bankers have completely lost control of prices.
Fed funds futures traders now see a 21% chance of a 75-basis-point hike in June, up from just 3.6% on Thursday, according to the CME FedWatch Tool. Economists at Barclays BARC, -3.69% and Jefferies backed up the shifting expectations, by indicating they expect policy makers to deliver a hike of that magnitude at their June 14-15 meeting.
Beneath the issue of where the Fed goes from here is a much more fundamental and serious problem: Some observers fear the U.S. central bank has already effectively lost control of inflation. May’s price gains were broad-based — hitting everything from shelter to gasoline and food, as well as the narrower gauge, the so-called core reading, that excludes food and energy. The data were “catastrophically bad” for both the Fed and Americans, said Nancy Tengler, chief executive and chief investment officer of Nashville-based Laffer Tengler Investments, which oversees $1.1 billion.
“What we saw in this report which was disappointing and a little alarming is that the core reading, excluding food and energy, came in hotter than expected and that’s after we dropped off from a very high number for April 2021,” she said via phone. “This is a much more persistent and stickier kind of inflation that takes years to work through the system.”
“The Fed has been wrong at every single turn and we should be seeing a 75 basis point hike at the June meeting,” Tengler said. “The question is whether they can surprise and I don’t think we are going to see that. Every time they delay, that allows inflation to run rampant and this raises the odds of recession.” Equity markets will be “ugly and choppy through summer because inflation numbers are not going to improve.”
Indeed, traders of derivatives-like instruments known as fixings have expected a string of annual headline CPI readings that rises to as high as 8.8% in August and September, before settling to 8% for October. Meanwhile, U.S. consumer sentiment plunged to a record low this month.
September outlook
“All in all, the report should be of great concern for the Fed given that price gains in both the headline and the core measures show no signs of abating, and we expect prices to continue to register firm gains in the near term,” TD Securities strategists Oscar Munoz, Priya Misra and others wrote in a note. “We expect the Fed to maintain its aggressive tightening bias in the months ahead, look for the Committee to hike rates by 50bp both next week and in the July FOMC meeting, and believe a 50bp hike in September may not be out of the question.”
A team at Goldman Sachs Group Inc. GS, -5.65%, led by Jan Hatzius, agreed with TD’s September assessment, by saying “we now expect the Fed to hike the funds rate by 50 bps in September (vs. +25bp previously), in addition to +50bp moves in June and in July.”
“Today’s report should extinguish any pretense that a ‘pause’ in rate hikes will likely be appropriate by the end of summer, as the Fed is clearly still behind the eight ball on bringing inflation under control,” said Jason Pride, chief investment officer of private wealth at Glenmede.
“Investors should expect the Federal Reserve to continue on its 50-bp rate hike path next week and beyond until inflation shows meaningful signs of decelerating toward the Fed’s 2-3% target range,” Pride said.
“Today’s CPI report was a doozy,” said Tom Graff, head of investments at Facet Wealth.
“While we knew the headline number would probably come in high due to food and energy prices, consensus was that the month-over-month Core CPI would slow sequentially,” he wrote in an email. “Unfortunately that didn’t happen. Headline CPI came in a full 1% for the month and a 40-year high 8.6% for the year, and core stayed steady at +0.6% for the month and 6.0% for the year.”
“The most concerning part of this report was its breadth. The monthly number wasn’t driven by a few items. Most of the major categories actually accelerated price increases month-over-month. Most observers agree that broader inflation is more likely to persist.”
“Friday’s inflation data suggests the ‘peak inflation’ debate may be premature,” said Nancy Davis, founder of Quadratic Capital Management. “The idea of peak inflation assumes that our supply chain disruptions are over and won’t recur anytime soon and I’m not so sure we can be confident of that.”
“Investors remain too confident that the Federal Reserve will be able to control inflation,” Davis said by email. “We should not take the Fed’s ability to control inflation as a given.”
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Considering that the Fed prefers PCE anyway and this data note came a bit late (and during their lockout, so they can't drop hints in the media about what they're going to do), I'd imagine that Wednesday is 50.
75 might get put back on the table for July though.
Ultimately it doesn't really matter though. They can't do anything about the energy issue or tariffs...Washington throwing in the towel on their energy policies and ending the China tariffs would do more.
For the index fund strategy, why do I rarely see VFV.TO mentioned here?
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Im one of these index fund strategy fellas (XEQT) - you know, the ones people love to plug them in the comments. We all know the players - VGRO, VEQT, XGRO, XEQT.
I’ve recently come across VFV, and am wondering why it doesn’t get mentioned here as often? It tracks the S&P 500, MER seems low, and gains are wild (up 100% over past 5 years). Seems like a no brainer to switch over to it, no?
Is there a fundamental difference in its holdings from the 4 favourites I mentioned above?
I’m considering switching all of my holdings over to VFV. My investing timeline is 30 years. Talk me off the ledge!
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VFV is mentioned here all the time - it’s just not an all in one ETF like the ones you mentioned, that are diversified across different countries and stocks vs bonds.
VFV is only the S&P500. Over the long term it would be expected for it to outperform ETFs that contain bonds (XGRO, VGRO), and while it may be outperforming XEQT/VEQT right now, the next 5 years may not be the same. Diversifying helps limit the volatility so you aren’t betting all your money on one country. Sometimes US markets outperform everyone else, and sometimes other markets outperform the US.
Where does an investor see the ETF vs Mutual Fund tax efficiency?
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Trying to understand how I as an investor see the efficiencies cited in ETFs & Tax Efficiency. I get that an EFT handle buys & sells differently than a mutual fun as cited in the article. Just not clear where I see these differences after I make a sale and file taxes. I have been using a tax preparer for a few decades, but I do not recall any details beyond the cost basis.
I also expect for an HSA, Roth IRA or 529a these details are moot. And the tax efficiencies are only taken advantage of when EFTs are in a brokerage or 401k account where you are taxed on withdraws. And my 401k does not have EFT options as far as I know.
What am I missing?
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Just not clear where I see these differences after I make a sale and file taxes.
You won't because this is not where the difference lies. Capital gain distributions are reported on 1099-DIV, not 1099-B. They do not happen when you sell, but rather when the fund distributes CGD at the end of a calendar year, if at all.
Nowadays, both mutual funds and ETFs issuers do a better job of avoiding CGDs. A well run mutual fund tracking the same index as an ETF tracking the same index might not see any CGD for years.
Where do I see if a MM fund is fed and/or state tax exempt?
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SPAXX. Fed taxes? State taxes?
FZFXX. Fed taxes? State taxes?
Top Comment: Thanks for posting this afternoon, u/profligateclarity . Happy to answer this for you. You can find tax information for money market funds by reviewing that fund's prospectus. To find a prospectus from any mutual fund, simply search the symbol in the "Search or get a quote" box on Fidelity.com. The Prospectus is listed in the top right-hand corner to the left of the buy/sell buttons. To save you time, you can usually find general tax info for a fund in the "Summary Prospectus" tab, which is shown first by default. Keep in mind, tax implications can change depending on a number of factors; for instance, the type of account the asset is held in, or where you live. We also have a page on Fidelity.com with certain tax information for Fidelity mutual funds, which will update when we have that information for 2022. Fidelity Mutual Fund Tax Information As a reminder, Fidelity does not provide tax advice, we recommend speaking to a tax professional to discuss your situation. Feel free to follow up with us here or via modmail if you have any other questions!
I see dead hedge funds
Main Post: I see dead hedge funds
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Here's the full one. We have a 1 min max post on WSB now so I couldn't post it in it's entirety. Love you boys. No matter what happens, this was one hell of a way to bring in 2021.
https://www.reddit.com/user/haupt91/comments/l603j6/i_see_dead_hedge_funds/?utm_source=share&utm_medium=web2x&context=3
VTSAX vs SWPPX. I only see VTSAX on this sub but is there any real difference?
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Most of my investments are dumped in SWPPX. This sub is always going on about VTSAX. Should I switch?
Top Comment: SWPPX is Schwab’s S&P index fund. VTSAX is entire US market. If you’re at Schwab and want the entire market, SWTSX is their VTSAX equivalent. However, SWPPX is fine, and if you’re in a taxable account, I would not create a taxable event by switching.