BlackRock iShares

[Kayzmum]

Has anyone ever heard of this? Our financial advisor's office is having a speaker discuss the market and he's tied to BlackRock iShares. I Googled and this is the only thing I found. Is it risky? Is it worth my time to go?

https://www.ishares.com/us/products/251378/blackrock-s-p-500-stock-fundinstl-class-fund

 

[COcheesehead]

I use iShares. Fidelity offers a bunch commission free. They are as risky as having any other money in the markets. As always, just make sure you know what you are investing in.

https://www.ishares.com/us

 

[Col. Klink]

BlackRock is one of the largest financial services companies in the U.S. with billions if not trillions under management. The one you linked is their S&P 500 index mutual fund. You can get the same product from VG, Fido, or many other companies. Is it risky? This one is an equity investment in a basket of large companies making up the S&P 500. Equities generally go up in value over time but sometimes go down. This is safer than an investment in a single company stock. Is it worth your time to go? Yes, if you are interested in learning about investments offered by BlackRock. If you are interested in learning about investments in general, forums here have a lot of good information. The Bogleheads website also has great information. Good luck.

 

[sengsational]

Some iShares come with a pretty high cost, though.



For instance, the expense ratio for ZCAN is 67% cheaper than EWC. The problem with ZCAN, though, is that it's so lightly traded, it's harder to get in and out of. But ZCAN (tracking the same MSCI Canada index), has had significantly better returns over time, probably due to it's lower expenses.

 

[LOL!]

iShares are great for the 10 or so ETFs that you should ever want to invest in. They rival the index funds of Vanguard, Fidelity, and Schwab.

The question is: What are you invested in now and why do you have a financial advisor?

 

[Kayzmum]

iShares are great for the 10 or so ETFs that you should ever want to invest in. They rival the index funds of Vanguard, Fidelity, and Schwab.

The question is: What are you invested in now and why do you have a financial advisor?

We have a financial advisor (actually we only met with him once) because we needed help with what to do with the investments he earned through the local electricians union when he retired a couple of years ago. The union did everything for him before he retired.

I have two 403B accounts and one 401K that are in blended investments. For example, one is TRP Retire 2025 (TRPCX). I'll be 60 years old in a week or so. I'm not sure when I'll retire but somewhere between 62 and 65 probably.

 

[Kayzmum]

Some iShares come with a pretty high cost, though.



For instance, the expense ratio for ZCAN is 67% cheaper than EWC. The problem with ZCAN, though, is that it's so lightly traded, it's harder to get in and out of. But ZCAN (tracking the same MSCI Canada index), has had significantly better returns over time, probably due to it's lower expenses.

Wow. You sound so much smarter than me when it comes to investing!! I'm okay with a hefty cost if it's worth it. I'm an empty nester and the house and cars are paid off right now.

 

[Kayzmum]

I use iShares. Fidelity offers a bunch commission free. They are as risky as having any other money in the markets. As always, just make sure you know what you are investing in.

https://www.ishares.com/us

Thanks cheesehead. I'll get as much information as I can before deciding.

 

[Kayzmum]

BlackRock is one of the largest financial services companies in the U.S. with billions if not trillions under management. The one you linked is their S&P 500 index mutual fund. You can get the same product from VG, Fido, or many other companies. Is it risky? This one is an equity investment in a basket of large companies making up the S&P 500. Equities generally go up in value over time but sometimes go down. This is safer than an investment in a single company stock. Is it worth your time to go? Yes, if you are interested in learning about investments offered by BlackRock. If you are interested in learning about investments in general, forums here have a lot of good information. The Bogleheads website also has great information. Good luck.

Thanks for your feedback, Colonel. Yes, I've learned a lot on this forum but feel like I have a ton more to learn.

 

[LOL!]

I'm okay with a hefty cost if it's worth it.

When it comes to investing, I think almost everyone reading this will agree with the following:

A hefty cost is never worth it.

Instead, successful investors seem to gravitate towards the lowest costs possible.

 

[COcheesehead]

When it comes to investing, I think almost everyone reading this will agree with the following:

A hefty cost is never worth it.

Instead, successful investors seem to gravitate towards the lowest costs possible.

It’s about return and only return.

 

[pb4uski]

OP seems to be a novice investor, in which case I would skip BlackRock, Fidelity, Schwab, etc and go with Vanguard. Vanguard is unique in that it is owned by its fundholder similar to a cooperative or mutual bank.... any profits go to fundholders rather than shareholders so they are generally incentivized to provide advice in the individual investor's best interest rather than what is best for their shareholders.

 

[LOL!]

It’s about return and only return.

It is about [risk-adjusted] return after taxes, fees, commissions, and other costs. I'm only interested in what ends up in my pocket for me to spend.

 

[Col. Klink]

OP seems to be a novice investor, in which case I would skip BlackRock, Fidelity, Schwab, etc and go with Vanguard. Vanguard is unique in that it is owned by its fundholder similar to a cooperative or mutual bank.... any profits go to fundholders rather than shareholders so they are generally incentivized to provide advice in the individual investor's best interest rather than what is best for their shareholders.

+1. Vanguard's fees are among, if not, the best in the industry. Satisfied client for over thirty years.

 

[OldShooter]

.. successful investors seem to gravitate towards the lowest costs possible.

It’s about return and only return.

Actually, you guys are agreeing. From Morningstar: “The expense ratio is the most proven predictor of future fund returns.” Bet on low cost and you'll probably optimize total return. It's really the only reliable fund-picking strategy there is.

Here is the Morningstar data (htps://www.morningstar.com/articles/752485/fund-fees-predict-future-success-or-failure.html ) as a graphic:

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Another point that I don't think has been mentioned is that the FA here should get a gold star for bringing an indexing pitch to his/her customers. I wouldn't make a sweeping generalization from one data point but I'd guess that this FA is not giong to be selling high-cost annuities to the OP.

I think the OP should definitely go to the pitch. She should, however, ask whether a broader, total market, fund would be preferable to a US large cap sector fund. Blackrock has both, so the answer should be balanced. (I vote for the total market fund, of course.)

 

[Kayzmum]

OP seems to be a novice investor, in which case I would skip BlackRock, Fidelity, Schwab, etc and go with Vanguard. Vanguard is unique in that it is owned by its fundholder similar to a cooperative or mutual bank.... any profits go to fundholders rather than shareholders so they are generally incentivized to provide advice in the individual investor's best interest rather than what is best for their shareholders.

I'm definitely a novice.

 

[target2019]

I'm definitely a novice.

If it were an invite to me, I might go. Blackrock is a respected company, and I'd think the speaker would be informative.