COMING SOON! (Course #48) Mastering Index Funds & ETFs: Performance, Fees, and Smart Allocation
Snowpal Education: A hands-on course that uses historical data to compare ETFs and index funds across markets and themes. Build a repeatable framework for ETF selection and portfolio construction.
Format: Mixed-format assessments designed for applied learning
Level: Beginner → Intermediate
Estimated Time: 2-2.5 hours total
Disclaimer: Educational purposes only. Not financial advice.
Course Description
This course provides a practical, numbers-first approach to understanding index funds and ETFs. Learners will analyze real performance data across time horizons, compare expense ratios, yields, and AUM, and develop a disciplined framework for ETF selection and portfolio construction. The course emphasizes comparative analysis across broad market, sector, thematic, and international ETFs.
Target Audience
Beginner to intermediate investors
Founders, professionals, and technologists seeking long-term investing literacy
Anyone evaluating ETFs for retirement, taxable portfolios, or diversification
Learning Outcomes
By the end of this course, learners will be able to:
Explain how index funds and ETFs work
Compare ETFs using returns, fees, yield, and AUM
Understand compounding vs. simple returns
Evaluate sector and thematic ETFs critically
Identify trade-offs between risk, return, and diversification
Avoid common ETF selection pitfalls
Course Structure
Module 1: Foundations & Disclaimers
Educational vs. financial advice
Why index funds exist
ETF vs. mutual fund basics
Risk vs. reward mindset
Module 2: Broad Market Index Funds
ETFs Covered: SPY, VOO, VTI, VT, IVV, IWM, QQQ
What each index represents
Top holdings and allocations (overview)
1-year, 5-year, 10-year, and 25-year performance
Compounding explained with real numbers
Key Takeaway: Broad-market ETFs are similar—but fees and long-term compounding matter.
Module 3: Expense Ratios & Fees
What is an expense ratio?
Dollar-cost examples ($10K, $100K portfolios)
Vanguard vs. non-Vanguard fee comparisons
When fees matter—and when returns dominate
Module 4: Sector ETFs Deep Dive
Sectors Covered:
Technology (XLK, QQQ)
Healthcare (XLV, VHT)
Energy (XLE, VDE)
Financials (FNCL)
Consumer Staples (VDC, IYK)
Why sector ETFs behave differently
Volatility vs. stability trade-offs
Why some low-return sectors have higher fees
Module 5: Thematic & Industry ETFs
Themes Covered:
Semiconductors (PSI)
Airlines (JETS)
Autos & EVs (CARZ)
Hotels & Hospitality (BEDZ)
Food & Beverage (PBJ)
How concentration impacts returns
Why some ETFs outperform dramatically
Survivorship bias in thematic ETFs
Module 6: International & China ETFs
ETFs Covered: KWEB, FXI, MCHI, ASHR
Long-term underperformance vs. short-term rallies
Political and regulatory risk
Comparing US vs. China tech ETFs
When international diversification helps—and when it hurts
Module 7: Dividends vs. Yield
Dividend vs. dividend yield explained
Why high yield can be misleading
Price decline vs. income illusion
Growth ETFs vs. income ETFs
Module 8: Assets Under Management (AUM)
What AUM tells you
Liquidity and ETF survivability
Why size matters
Comparing mega-funds vs. niche ETFs
Module 9: Portfolio Construction Philosophy
Over-diversification vs. concentration
Sector familiarity advantage
Combining ETFs with individual stocks
Matching investments to career and industry exposure
Module 10: Practical ETF Evaluation Framework
Step-by-Step Checklist:
Sector or broad market?
Long-term returns (10–25 years)
Expense ratio sanity check
AUM & liquidity
Dividend vs. growth objective
Personal risk tolerance
Quizzes & Worksheets
Feel free to test your understanding of this course by taking the quiz below!
Module 1 Quiz: Foundations
Multiple Choice
An ETF primarily exists to:
A. Beat the market consistently
B. Provide diversified exposure to a basket of assets
C. Eliminate all investment risk
D. Replace individual stocks entirely
Which statement best describes risk vs. reward?
A. Lower risk always produces higher returns
B. Higher returns usually require accepting higher risk
C. Risk and reward are unrelated
D. ETFs remove risk completely
Short Answer
3. Why is diversification considered both a benefit and a limitation?
Module 2 Quiz: Broad Market ETFs
Multiple Choice
4. SPY, VOO, and IVV track:
A. The Nasdaq 100
B. The Russell 2000
C. The S&P 500
D. Global markets only
Over long time periods, why do SPY and VOO returns look nearly identical?
A. Coincidence
B. Identical underlying index
C. Identical expense ratios
D. Same fund managers
Worksheet Exercise
Compare SPY vs VOO vs IVV over 10 years
Note: Return %, expense ratio, AUM
Circle which fund you would choose and why
Module 3 Quiz: Expense Ratios
Multiple Choice
6. An expense ratio of 0.03% on $100,000 equals approximately:
A. $3
B. $30
C. $300
D. $3,000
Why do lower expense ratios matter more as portfolios grow?
A. Fees compound negatively over time
B. Fees are charged monthly
C. Fees increase market volatility
D. Fees reduce dividends only
Worksheet
Calculate annual fees for $10K, $100K, $500K at:
0.03%
0.10%
0.50%
Module 4 Quiz: Sector ETFs
Multiple Choice
8. Which sector ETF historically delivered the highest long-term returns?
A. Consumer Staples
B. Energy
C. Technology
D. Hospitality
Why might a low-volatility sector still have higher fees?
A. Higher trading volume
B. Perceived stability and defensive positioning
C. Higher dividends guarantee returns
D. Regulatory requirements
Short Answer
10. Why might an investor intentionally accept lower returns in exchange for sector stability?
Module 5 Quiz: Thematic ETFs
Multiple Choice
11. Semiconductor ETFs tend to outperform because:
A. They hold thousands of companies
B. They concentrate on high-growth industries
C. They pay higher dividends
D. They have lower AUM
A key risk of thematic ETFs is:
A. Under-diversification
B. Over-diversification
C. Low expense ratios
D. Excess liquidity
Worksheet
Pick one thematic ETF
List top 5 holdings
Identify the single biggest risk factor
Module 6 Quiz: International ETFs
Multiple Choice
13. Why have many China ETFs underperformed long-term?
A. Poor technology adoption
B. Regulatory and political risk
C. Higher dividend payouts
D. Currency stability
Why can short-term performance be misleading?
A. Markets always revert in 1 year
B. Cycles differ across time horizons
C. Fees disappear over time
D. ETFs rebalance daily
Short Answer
15. When might international ETFs still make sense in a portfolio?
Module 7 Quiz: Dividends & Yield
Multiple Choice
16. Dividend yield increases when:
A. Price rises faster than dividends
B. Dividends fall sharply
C. Price drops while dividends remain stable
D. Fees increase
High dividend yield can sometimes signal:
A. Strong growth
B. Business distress
C. Guaranteed income
D. ETF safety
Worksheet
Compare a high-yield ETF vs QQQ
Note yield %, 10-year return %, price trend
Module 8 Quiz: Assets Under Management (AUM)
Multiple Choice
18. Higher AUM generally implies:
A. Lower liquidity
B. Higher closure risk
C. Greater stability and liquidity
D. Guaranteed returns
A very small ETF may be risky because:
A. It trades too often
B. It may be liquidated or merged
C. It has low dividends
D. It tracks too many stocks
Module 9 Worksheet: Portfolio Design
Scenario Exercise
You have $100,000 to invest:
40% Broad Market ETFs
30% Sector ETFs
20% Thematic ETFs
10% Cash or Bonds
Questions
Which ETFs would you choose?
Why these weightings?
What risks are you intentionally taking?
Capstone Exercise
Compare QQQ vs. a sector ETF of choice
Justify allocation based on numbers, not narratives
Identify one ETF you would not invest in—and why
Choose ONE ETF and justify: Sector or theme / 10–25 year performance / Expense ratio impact /AUM and liquidity / Dividend vs growth profile
Final Reflection: One ETF you would confidently invest in, One ETF you would avoid, One metric you will always check first
Final Note
This course is designed to build intuition through real data, not hype. Mastery comes from repetition, comparison, and long-term thinking.