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To: Diamond Jim who wrote (2963)	1/21/1998 12:39:00 PM
From: sea_biscuit	Respond to of 42834

Btw, Vanguard is introducing small-cap growth and small-cap value index funds within a few months. They are also introducing a mid-cap index fund that tracks the S&P Midcap 400 at the same time. More information follows... Also the S&P Midcap 400 can be bought just like the SPiDeRs on the American Exchange. The ticker symbol is MDY, and I believe they are called "MIDDIES". Dipy. >From online@vanguard.com > >Thank you for your recent e-mail. On January 9, 1998, Vanguard filed with >the SEC to add three new index Funds to Vanguard Index Trust: Mid >Capitalization Index Fund (MidCap), Small Capitalization Value Index Fund >(SmallCap Value) & Small Capitalization Growth Index Fund (SmallCap >Growth). The new Funds will seek to track the performance of the S&P >MidCap 400, S&P SmallCap 600/BARRA Value and S&P SmallCap 600/BARRA Growth >indices, respectively. > >After the standard 75 day SEC review period, the Funds are expected to be >launched on March 30. For the three new Funds there will be a six week >subscription period, from March 30 until May 13. > >Since Vanguard only recently filed with the SEC, we are limited in what we >can discuss. If you would like to be placed on our waiting list to receive >information when it becomes available, please e-mail us with your address. > >If you have any questions, please feel free to e-mail us again or call our >Investor Information Department at 1-800-871-3879. An Associate will be >pleased to assist you.

To: Diamond Jim who wrote (2963)	1/21/1998 1:43:00 PM
From: Kirk ©	Read Replies (2) \| Respond to of 42834

Kirk, Okay, thank you much. What about a little education on Index/mutuals for me now. Bought after the close or when, please explain a bit. Mutual funds are bought n sold at the closing price. You place an order for say $2000 of Fund X and it might close at $20/share so you get 100 shares. Funds keep a cash balance, even index funds, to handle trading. The big Index funds with low expenses discourage day trading so they can keep a very low cash reserve and thus more accurately track the index. Trading costs money for commissions and people to execute and record the trades, so the really low index funds really don't want you trading. That is why we got SPY, MDY, et. al. to satisfy the market for day trading on index(s). With the super discount brokers, you can get pretty low expenses day trading. SPY, MDY, etc trade real time and are great for traders trying to get the last point in a swing. In the whole scheme of life, the last point doesn't really matter for critical mass so buying at the closing price is fine for most long term investors. Caution. Trading, especially on margin, without having a clue is a sure way to wave bye-bye to your money. Hillary is the only successful example I can think of. regards Kirk out suite101.com