@@petermaag9622 why? everyone he said is still relevant, even if the s&p 500 has still had huge returns, because it remains to be seen how it will perform in the next 20 years (probably below average since things tend to go back to the average)
I’m an institutional advisor, working with corporate pensions, hospitals, and small colleges. Ben’s material is as good or better than almost anything I’ve seen.
This channel has grown because of its honest and amazing content. Otherwise theres so much noise(opinions rather than facts) online. Keep up the good work Ben!
@@starmorpheus I'm 100 percent in S&P 500 as well. I know we shouldn't "time" market, but let's be honest. the S&P 500 is way too overvalued right now (basically double what is was from 2020. Now seems like the right time to do re-allocate some assets to other things.
@@michaelyoon9355 It is not overvalued it is has just gone through a massive growth period which is right within the S&P 500 natural growth. Buying now you maybe buying at a peak period which may take a good 15 years to get back again or you maybe buying at a low period depending on how you time it. People will say not to time the market but if you get a 300% growth over a period do you really think from that period it is going to grow another 300%?
@@bighands69 But the growth is not actual growth. It's speculative mate. There is just little chance that the value of the economy has doubled when everyone was quarantined in their homes.
@@bighands69the fact that recent returns have such a low percentage of repeating using historical data in combination with unusual high valuations means that there’s something unique happening with the s&p. Whether it’s people betting on tech, or running to US stocks for perceived safety, you just have to ask yourself do you think these unusual reasons are still valid in driving the s&p outperformance of the total market in the future
Total newbie to investing and i think my head is going to explode with all the info and note taking i just did. Haha but i do appreciate you “dumbing it down” for people like me! Got a new subscriber!
This is by far the best investing channel on UA-cam... and I’ve watched a lot of investing channels on UA-cam. Thank you for all of this, Ben! You are helping people!
Your videos are always a home run..... I must honestly say, I have learnt a lot from you and your philosophy. Coming across your channel was definitely a jackpot 👌🏿
My stock exposure includes a majority investment in the total stock market index, and has for many years. Ben's insights right on point. Love your channel.
A lot of fire people tend to only invest in total market SP 500 index funds, and this video explains why that isn't as diversified as it is made out to be. Excellent!
Ben is one of the few finance youtubers that actually knows what he is talking about, has the certifications to prove it, and gives an honest opinion. You won't find any get rich quick schemes on this page. Bravo Ben!
I‘m a total rookie to stocks and ETF‘s. But I‘ve learned a lot watching UA-cam and reading blogs and books. So I‘ve started my investing journey with an MSCI World and an MSCI EM (80:20) by saving into a monthly plan. As I’ve learned that diversification is essential this feels right for me (at the moment).
If you want to learn investment then you need to get the book Intelligent investor so as to widen your knowledge. It was a relevant book 70 years ago and still is today because the concepts are basic and true.
Thank you Ben. Keep the good work. I can't describe how this channel is beneficial for me understanding more about investing as taking my first steps. Although living in Europe & some of the content is very Canada specific, I still find your videos extremely helpful. I hope to find a content creator like you in Europe :)
It looks like the peak CAPE in '90 was about 90! That's INSANE! Asset bubble to the moon! That wasn't the total peak though, as hard as that is to believe. Top CAPE was above 100. I don't even understand that kind of bubble. Japan now hovers around 25-30, which is still ridiculous, but much better than over 100.
Hey Ben! I really enjoy your videos and podcast. Thank you for stepping up and sharing your knowledge backed by academic research, current data and passion! Much appreciated.
Great Video. Thank you for posting. I invest on my retirement (401K) money in VFIAX (S&P 500). I have Non-retirement account and I invest in VTSAX(Total Stock Market). I do NOT own international index funds. VFIAX and VTSAX are enough diversification for me, in terms of stocks. I am happy with them, so far good returns.
The reason why it has performed so well is because of the self fulfilling prophecy notion: ppl invest in it more because it gets more media exposure (and that's likely to continue)
Nope. It keeps growing and has been doing so for the last 100 and matches the economic business cycles with the up and down periods. We are now about to enter a period of more expensive capital so we may see a period in the general economics of wild swings which may translate to investing. There is also the fact in the last 50 years it has become very popular for workers in America to invest their money at a regular pace so that they can get growth over a 40 year period rather than a 3 year period so there is more of an expectation of slower growth.
I recently made the shift from dividend investing in stocks to only buying SP500 ETFs, primarily growth. It's definitely less stressful and I've been managing the portfolio less and less. I just pump in cash and the portfolio does the work for me now.
@@GTOYMPodcast I agree 100% I'm 17 and planning on investing as soon as I'm 18, I'm planning on just £25 a month kind of thing, ik it won't make millions in a week...I tend to stress where my money is alot, and the index sounds the best option for me, something I can put money into and can rely that it won't disapear or burn down in a crash...I'm tryna find the best investment and all that jazz cos obviously I don't wanna lose money....the more I watch and learn the more the index just seems...right...almost too right tbh 😂
You can do a lot worse than investing in the S&P 500. You won't see the benefits of long term investing if you pull out your money on a temporary downturn at any time. Eliminating behavioral instincts in regards to the stock market is much more important. He mentioned a paper saying that the S&P 500's rate of return from 2009 to 2018 was nearly impossible statistically. But 2019 was a record breaking year with a 28.9% return, and in 2020 it has returned 2% so far even with the recent 10% dip starting on September 1st (and the current pandemic).
Hey 7 month later I learn a lot I even have my own UA-cam channel come check them out of what I own now. I was only buying VOO but now I put more of my money in Apple Amazon Nvidia and Tesla.
What I like about Ben's knowledge pool is that he relays it with credible references. As an engineer, nothing is as refreshing as that. It immediately tells me "Yeah! This guy knows his sh*t"
Some stocks might seem too big to generate explosive growth. Others could be so small that their risk level isn't appealing. investors can find stocks that are just right.
@@kumarvenkatesh6600 I’ll advise you get stocks that are well-positioned to grow through all economic and market cycles. Through proper financial planning I’ve made more than enough profits from the stock market this past months with the help of my FA Frost Hilda who actively ensures I consistently profit from the market, you should probably get someone on your team.
As a European, the only low-cost way to invest in the USA is through a S&P 500 etf. Since MIFID II regulation, Vanguard's Total US stock market is is not available to us. Other etf's which track the total US market that we do have acces to, tend to have signicantly higher expense ratios. So I don't feel like there's a better option available for EU investors
Every investor intention is to build a portfolio that can beat the market yet fails to understand that finding success with these Investments isn't necessary rocket science, but it does require putting in hard work, taking risks and ensuring proper research on the right stocks to invest in.
@@mikenorman5172 it's interesting that the best investors of all time have nearly had extremely concentrated portfolio. They key is to know what you're doing, then you can make concentrated bests. For everyone else (most people) diversification is probably idea.
is it possible that the reason s&p500 continues to be out performing outside its statistical range is because of the large automatic inflows to index funds over the past 20 years and not because of the underlying fundamentals of its holdings? and as a result, the s&p 500 will continue to out perform as long as the inflows continue to prop up the underlyings?
You may have a point there but I would say over the long run those valuations get more fragile/volatile the more they get farther from their intrinsic value and eventually they would have to correct down to lower valuations. Just like he states in the video, as prices rise, expected returns in the future tend to be lower.
Another great video Ben. it's always good to be reminded of how the past ten years have been particularly incredible for this index. Keep up the great work we learn a lot from your vids
It is a great idea.... Especially when the Euro bond market continues to implode. .,just imagine how high the S&P will go when the whole Euro zone for up in smoke..
I'll stick with Warren Buffet's recommendation to dollar cost average into the S&P 500. Over the long-term, the S&P 500 will do just fine - maybe not the best, but good enough for a pleasant retirement. Adding international - and determining a percentage in international - just adds clutter and leads people to tinker with their portfolios.
@@twiho I am U.S.-based and prefer something to just set and forget. The “problem” with a world market index fund is there may come a time when it has a substantial portion in another country/region (like in the 1980s when Japan’s market cap represented over 50% of the global market cap). That’s too much non-U.S. for me given currency risk and other factors, and would probably lead me to tinker. Know thyself
Only in my 401k and HSA where choices are very limited. In other accounts I do have some VTI and VXUS. VTI is mostly used as my "park the money in the market while looking for opportunities" fund and VXUS to increase my non-US exposure.
Personal observation: everyone is so focused on getting the best returns possible; it seems as if this stops people from investing because they want to do it in the best possible manner instead of committing to a long term plan/strategy/method of execution
I can't shake my desire to only invest in the US market just because it's outperformed so far. I know it's irrational, just can't bring myself to go international despite clear reasoning
This has blown quite a few preconceptions I had out the water - thank you. It seems better averages are obtained (with respect to indexes) when holding atleast a few (across markets) as opposed to concentrating on a single market.
I spread my investing into 4 categories: US large growth funds, US large growth funds with high yields, US small growth funds, and international funds (non-US).
@@miguelfausto5570 I'll give you only two of my favorites. My favorite growth fund has always been QQQ, which tracks the Nasdaq 100. My favorite growth with high dividends has been MWATX, which tracks the S&P 500. I only buy these for the long term, like 20+ year periods only. They're both cheap right now since the market is way down, so its a great time to buy!
Jack Bogle made some good points on why the S & P 500 is better than owning a global or international fund: 1. Because U.S. is the most "entrepreneurial" nation 2. The U.S. economy is probably the most well-diversified economy 3. The companies that are based in the U.S. have international exposure anyway. This is why the S & P 500 has significantly outperformed global and international funds over the past several years; just compare VOO (S & P 500 ETF) to VT (global ETF)
I have been holding VFV for the US portion of my portfolios but have been contemplating switching out for VUN for a while, since I am looking at 20-30 year time frames. I think this video has helped me to finally make up my mind, so thank you!
@@impec I switched my main fund from VFV to VUN and just started buying VUN instead of VFV in my smaller accounts (RESPs). I still think it's the right decision especially for my main fund which I'm not aiming to touch for 25-30 years. In that time frame it seems likely that some companies that are in the S&P500 drop out, while some company that is small now becomes big enough to join the S&P500. To oversimplify greatly, the members of the S&P500 have nowhere to go but down while the majority of the companies in the VUN have nowhere to go but up, and the longer that runs for the more significant it becomes. Time will tell, but theoretically it is the right decision so that's really the best I can do.
I’m very much on the fence between VFV or VEQT. My timeline is a 30 year period where I just purchase every week and every additional dollar that comes my way. I haven’t been able to find anywhere why VFV isn’t recommended as much. Is it because it’s US focused ? Simple path to wealth says that being exposed to just the US isn’t a bad thing because the largest holdings all have worldwide influence
@@tommyb0y35 Pretty much, yeah. Outside of the US, there isn't as much belief that the US will continue to dominate the market, or they believe that the US doesn't have as much room to grow anymore as other countries catch up, so people are more averse to VFV. For tax reasons it's also not optimal, for your RRSP it's better to Norbert Gambit a large lump sum of money into USD and put it into VOO (the US equivalent ETF). Home country bias is also another good video from Ben Felix that helps explain why Canadians really like X/VEQT. There's also people in the US who don't really like S&P500 because it's carried by a small number of companies with a lot of losers that have their value inflated by being in the S&P 500 so they prefer something like QQQ(M) instead.
It's funny how the few people I discuss investing with all swear by the S&P500 and completely ignore Canadian and international indexes. They're blinded by recent returns and are falling into the trap of buying what's been hot for the last 10 years. I've stopped trying to reason with them, though maybe I should point them to your video since you're doing a better job than me at explaining this stuff :)
What I do is invest into ETFs and blue chip stocks but I like to focus on ETFs that mirror the performance of a major index like the S&P 500 for good ROI monthly and long term
Look up the name Benjamin ravies, that's the name of my fiduciary he trades the market for me with his expertise while I earn he charges a commission on ROi
Stocks is a great investment and way to create multiple income sources from the proceeds, I have been in the market years now and I have made my fair share of wealth over and over
My views on investing are heavily influenced by being just over the border from Detroit, and watching how different businesses are in terms of attitude and customer service. I hadn't really considered the S&P-TSX. I'm due for an investment evaluation and will definitely ask questions about it.
So I've had my annual review of investments, and with a solid base established I am now getting into a TSX/S&P index. Thanks again for the vid Ben, the history looks promising in spite some near 10% yearly drops.
Hi i'm from indonesia, despite it short coming the snp500 index is the cheapest way for me to diversitify and get exposure my investment internationally. Thank ben for your information.
Yes, doing business outside the US isn't the same has businesses based in the US. While a US based company like Apple does international business, so does a South Korea based company like Samsung. Since we don't know which will perform better, investing in both countries and companies is prudent.
John Gonzales VTI is the best because it’s broader US economy vs. VOO which only invests in 500 bigger companies. VTI is blend of small, medium and large companies. In a long run, smaller companies outperform larger ones because of their potential growth. However investing in either ETF will give you the result you want. The main thing is just to add more money into the fund. You can also check my small YT channel video on VTI vs VOO.
i m 100% index. 1/3 Cdn 1/3 US and 1/3 MSCI World. although given MSCI includes USA, I am wondering if I should just ditch USA and just keep the remaining 2
You're heavy on US and light on international and emerging markets. There is no perfect allocation, and your US overweight has been beneficial in recent years. Personally I'd up my international and EM exposure. US prices are high which means lower expected returns. International and EM prices are low. It's not a market timing decision, the point is just that a more even allocation across geographies leads to more diversification across potentially different levels of expected future returns.
I don't feel that impressive, but opposite: 1. S&P500 valuation goes beyond the global for an extended period, why is it still bullish? Because the EPS backed its grow. 2. Tracking error is absolutely not a significant error towards the Index. 3. If the global market becomes more correlated and returns less than US treasury bills, then it doesn't make sense to diversify on a global scale. 4. The federal interest rate is at 1.75%, instead of 4-5% like 2008 and 1999. It's not cheap, but not like a 1.3% chance to perform well. (Statistical evidence? full of flaws and bias) Seeing these many thumbs always makes me feel happy as a loyal S&P 500 investor.
When investing internationally. Without considering the economic performance of a country within which a company operates you are taking a big underperformance risk
Hi Ben, great video. I’m relatively new to investing (H1 2022) and came across your channel from James Shack (UA-cam). I’m working my way back through your videos. Great education. I’m currently purchasing low cost uk etfs. 50% eqqq (Nasdaq) and 50% csp1 (S&P 500). After watching this vid I’m now reflecting on my decision and would like to look into global etfs. Where should I start? PS I assumed I was I had global diversification due to S&P overseas exposure. Thanks for dispelling that belief 👍 PPS I’m based in the UK
Look, the S&P500 has 500 stocks while NASDAQ has 100. If one stock does bad, you won't really notice it with S&P500 (ratio 500/1) whereas with NASDAQ is will be 100/1 that's 0,2% to 1%
I'd love to see a video on how to pick a good total market index fund. It seems like most of them are market-cap weighted, so owning VTI isn't much different from owning VOO. Is it better to buy VOO, VB, and VO individually, and keep them balanced at 33% each?
I love the S&P 500 index, but with Berkshire Hathaway ranking in the top 5 of S&P holdings and having BRK owning large parts of Apple, Amazon, and other S&P 500 companies does that not skew the investment? Does it make the S&P 500 index, at least in theory, less diversified? Wouldn't a Total Market Index be better? Great video series! Keep up the solid work.
I completely agree, however, the reports cited also cherry picked a period ending with the S&P shortly after a crash. So, diversify and lean slightly towards proven funds. That's what I'm doing
As an American, it's great to hear a global perspective. So refreshing. But personally, I'm all in cash waiting for the recession. Well 40% in bonds 60% in cash. No point in buying high
In theory and logical it makes sence to invest in a global index fund instead the S&P 500. But practical it is very probable to get lower returns. It's like an insurance product, more security will costs you money. Also I don't like the argument, because the past performance was good, then the performance in the future will be not so good. This is first level thinking. Second level thinking would be to ask, why the performance was so great in the past. Perhaps because the US companies are better capital allocators and has returned more money to the shareholders than non-us companies? Of course one thing is sure, the advantage of the US stocks will not last forever. But nobody can predict when this will change. Investing in non-us stocks is betting this change will happen in the near future. But it is probable that US stocks will perform better then non-us stocks for another 50 years. I'm a european and for myself I think the returns of the S&P 500 will not be so good in the future, but I think it is high probable that it will be still as good as the return of a global index fund. But with non-us stocks I have a higher risk of underperforming because the non-us countries still haven't the corporate culture which benefited shareholders like in the US. The most non-us companies are bad capital allocators and doesn't benefit shareholders. This is why non-us stocks performing so bad. An extreme example are japanese companies, where the shareholder is the last thing for what the management is working for. No other country has this long history of shareholder friendly culture like the US and I see no signs, that other countries will adapt to this culture. If the US economy will doing worse, the S&P 500 companies will still earn a lot of money because 40-50% of the revenues comes from outside the US and then I bet this exposure will increase.
s&p500 is up 90% in the five years since this video was posted. that's not a dig at ben but rather an observation about how historically unprecedented the last decade and a half has been. prognostications about the market are largely a waste of time, but I admit I find current valuations concerning.
Your videos are way too good! Ideas are explained clearly and data backed. It's also impressive that you came from an engineering background. Please tell us a bit more about yourself like how you learned all these knowledge, or give some advice to retailer investors on how and what to learn about the fundamentals (obviously watching your channel is already great!)
Great analysis Ben. What do you think about investing in a single broad based global total share market index fund for the equity portion of one’s portfolio? eg a Vanguard MSCI total stock market index fund/ETF? Also I would love a segment on how to approach the defensive side of portfolio investing eg fixed interest diversification as well as another segment on currency hedging
*"a single broad based global total share market index fund"* wow that was one long ass word P.S. im new to investment, what does MSCI stand for? Market Share Capital Index?
It’s nice to know that Johnny Sins is also very knowledgeable about stock investment.
Mark Rivera Hahahaha
Best comment ever.
This video is for "educational purposes"
I LOLd
god damn it mark i lost it I LOST IT
The amount of information in this video is absurd. It's amazing how much you can explain in 10 minutes.
And yet, youd better ignore it ...
@@petermaag9622 why? everyone he said is still relevant, even if the s&p 500 has still had huge returns, because it remains to be seen how it will perform in the next 20 years (probably below average since things tend to go back to the average)
I’m an institutional advisor, working with corporate pensions, hospitals, and small colleges. Ben’s material is as good or better than almost anything I’ve seen.
@@MrSupernova111 lol
Most of his stuff is research from 1980s, that's crazy how much industry is behind the academia. It's the same in my area lol
If you can't beat the market, then why are you wasting time investing yourself? Just buy the sp500 SPX or SPY, and go enjoy your life.
His material is political trash
To the point, well edited, based on real research, professional. That's why your channel is doing great :)
If all you wanted was half truths and knowledge you can't act on, I guess.
comma splices
@@thegodpill9696 what's full truth give
@@louiejoe2533 the market is about to crash hard and GME stock will become God's currency.
@@thegodpill9696 I mean if Xeno says so
This channel has grown because of its honest and amazing content. Otherwise theres so much noise(opinions rather than facts) online. Keep up the good work Ben!
The honest content and the open minded Ben is the recepy for the large amount of subscribers lately. I'm one of the newcomers.
This guy deserves some kind of award for his content and the service/WEALTH of knowledge he is sharing
It's crazy how if you'd watched this and been spooked out of investing you'd have missed out on over 100% returns.
Man you are my financial advisor I'm not even joking. Greetings from Italy. Thank you.
I am a 100% S&P 500 investor and this is a very informative video. I’ll gradually add ex-US and small caps into my portfolio. Thank you!
Did you end up doing that my man?
@@starmorpheus I'm 100 percent in S&P 500 as well. I know we shouldn't "time" market, but let's be honest. the S&P 500 is way too overvalued right now (basically double what is was from 2020. Now seems like the right time to do re-allocate some assets to other things.
@@michaelyoon9355
It is not overvalued it is has just gone through a massive growth period which is right within the S&P 500 natural growth.
Buying now you maybe buying at a peak period which may take a good 15 years to get back again or you maybe buying at a low period depending on how you time it. People will say not to time the market but if you get a 300% growth over a period do you really think from that period it is going to grow another 300%?
@@bighands69 But the growth is not actual growth. It's speculative mate. There is just little chance that the value of the economy has doubled when everyone was quarantined in their homes.
@@bighands69the fact that recent returns have such a low percentage of repeating using historical data in combination with unusual high valuations means that there’s something unique happening with the s&p. Whether it’s people betting on tech, or running to US stocks for perceived safety, you just have to ask yourself do you think these unusual reasons are still valid in driving the s&p outperformance of the total market in the future
Your video never aged! Another proof of high quality contents! THANK YOU! THANK YOU! THANK YOU!
Total newbie to investing and i think my head is going to explode with all the info and note taking i just did. Haha but i do appreciate you “dumbing it down” for people like me! Got a new subscriber!
This is by far the best investing channel on UA-cam... and I’ve watched a lot of investing channels on UA-cam. Thank you for all of this, Ben! You are helping people!
Thanks Emily!
@@BenFelixCSI Can I have your email please? I have some questions about Stock Index and Index Points. I believe you can help me. Thank you.
@@ShuvoMotherchodI think you might be able to contact him via PWL capital.
This young man has the charisma of the speech , he can transmit what he has in his mind to his auditors. Congratulations.
As a CPA and Auditor, people like Ben sadly don't exist at clients haha
Your videos are always a home run..... I must honestly say, I have learnt a lot from you and your philosophy. Coming across your channel was definitely a jackpot 👌🏿
Thank you!
@@BenFelixCSI After I buy a bunch of VSP, do I need to do anything after? Do I just wait like 40 years without touching anything?
@@asdasd-lq2hd keep buying at regular intervals when you have money you don't need for 40 years
Here at the airport at 5am and see Ben Felix’s video.
I love it.
Thanks!
My stock exposure includes a majority investment in the total stock market index, and has for many years. Ben's insights right on point. Love your channel.
Thank you, Sam!
A lot of fire people tend to only invest in total market SP 500 index funds, and this video explains why that isn't as diversified as it is made out to be. Excellent!
This video has aged very well. VT and chill (with bonds allocation)
I use this video as a rational reminder of why I don’t put all my money in the S&P 500.
Ben is one of the few finance youtubers that actually knows what he is talking about, has the certifications to prove it, and gives an honest opinion. You won't find any get rich quick schemes on this page. Bravo Ben!
"Investors changing risk preferences ..." Thanks Ben, I spit out my coffee.
Professional way to say panic hahaha
Thx you Ben....clear, to the point, no waffling, no rhetoric, no shambling. Just the way it should be.
The stock hitman should be ur UA-cam name. I think it’s pretty dope😂
A M 😂😂
😂😂😂
0:00 The value of the channel outperforms the growth
RRR Infinite ROI
Underated/valuable comment
The exceptional performance is mainly attributed to the start period being a stretched rubber band to the downside.
I‘m a total rookie to stocks and ETF‘s. But I‘ve learned a lot watching UA-cam and reading blogs and books.
So I‘ve started my investing journey with an MSCI World and an MSCI EM (80:20) by saving into a monthly plan.
As I’ve learned that diversification is essential this feels right for me (at the moment).
If you want to learn investment then you need to get the book Intelligent investor so as to widen your knowledge.
It was a relevant book 70 years ago and still is today because the concepts are basic and true.
glad to see the channel growing
Thank you Ben. Keep the good work. I can't describe how this channel is beneficial for me understanding more about investing as taking my first steps. Although living in Europe & some of the content is very Canada specific, I still find your videos extremely helpful. I hope to find a content creator like you in Europe :)
Once you embrace international diversitication, there isn't really any difference between Ben Felix and an "European Ben Felix"
I'm learning English by your videos and also improve my investing knowledge :)
Thank you.
What an incredibly articulate video! Really appreciate the insight! Very happy that I found your channel.
8:15 I wonder what was the expected return for Japanese market based on Shiller PE in 1989?
It looks like the peak CAPE in '90 was about 90! That's INSANE! Asset bubble to the moon!
That wasn't the total peak though, as hard as that is to believe. Top CAPE was above 100. I don't even understand that kind of bubble.
Japan now hovers around 25-30, which is still ridiculous, but much better than over 100.
Congrats on the growth Ben!
Thanks! Just trying to keep up with you.
@@BenFelixCSI well at this pace it won't be long until you take the lead! Keep up the great work.
Congrats on the Value* 😆
Thanks Ben for the informative video. Since you suggested total market over s&p500 I got ITOT instead of IVV for my core long term index.
I’m glad to know investing in the S&P 500 is not the end of the world.
Hey Ben! I really enjoy your videos and podcast. Thank you for stepping up and sharing your knowledge backed by academic research, current data and passion! Much appreciated.
Thank you, Amber!
@@BenFelixCSI I am applying to PWL! :)
@@amberelizabeth1215 Awesome! Best of luck in the application process!
Ben Felix Thanks Ben!
That's it. I consider myself a broadly diversified index fund guy. Thanks for the invaluable info Ben. Thank you really.
Great Video. Thank you for posting. I invest on my retirement (401K) money in VFIAX (S&P 500). I have Non-retirement account and I invest in VTSAX(Total Stock Market). I do NOT own international index funds. VFIAX and VTSAX are enough diversification for me, in terms of stocks. I am happy with them, so far good returns.
Finest finance UA-cam personality out there
The reason why it has performed so well is because of the self fulfilling prophecy notion: ppl invest in it more because it gets more media exposure (and that's likely to continue)
Nope.
It keeps growing and has been doing so for the last 100 and matches the economic business cycles with the up and down periods.
We are now about to enter a period of more expensive capital so we may see a period in the general economics of wild swings which may translate to investing.
There is also the fact in the last 50 years it has become very popular for workers in America to invest their money at a regular pace so that they can get growth over a 40 year period rather than a 3 year period so there is more of an expectation of slower growth.
Your project is worth it. Learning a lot from your channel.
I’m just starting to learn a little hopefully I understand more in the future before I put all on money in to the SP500
I recently made the shift from dividend investing in stocks to only buying SP500 ETFs, primarily growth. It's definitely less stressful and I've been managing the portfolio less and less. I just pump in cash and the portfolio does the work for me now.
@@GTOYMPodcast I agree 100%
I'm 17 and planning on investing as soon as I'm 18, I'm planning on just £25 a month kind of thing, ik it won't make millions in a week...I tend to stress where my money is alot, and the index sounds the best option for me, something I can put money into and can rely that it won't disapear or burn down in a crash...I'm tryna find the best investment and all that jazz cos obviously I don't wanna lose money....the more I watch and learn the more the index just seems...right...almost too right tbh 😂
You can do a lot worse than investing in the S&P 500. You won't see the benefits of long term investing if you pull out your money on a temporary downturn at any time. Eliminating behavioral instincts in regards to the stock market is much more important.
He mentioned a paper saying that the S&P 500's rate of return from 2009 to 2018 was nearly impossible statistically. But 2019 was a record breaking year with a 28.9% return, and in 2020 it has returned 2% so far even with the recent 10% dip starting on September 1st (and the current pandemic).
Hey 7 month later I learn a lot I even have my own UA-cam channel come check them out of what I own now. I was only buying VOO but now I put more of my money in Apple Amazon Nvidia and Tesla.
Ben Felix is doing a great job. Thank You. Keep up the good work!!!!
I love that you use academic papers to provide support for your argument.
Just switched all my VOO funds to VTI. Thanks for the analysis!
Not even 5 minutes in and you have a new sub 💯
What I like about Ben's knowledge pool is that he relays it with credible references. As an engineer, nothing is as refreshing as that. It immediately tells me "Yeah! This guy knows his sh*t"
Some stocks might seem too big to generate explosive growth. Others could be so small that their risk level isn't appealing. investors can find stocks that are just right.
The big indexes are chugging higher but are largely being propped up by a handful of the biggest stocks.
I’m currently looking out for stocks with solid growth prospects.
I’ve bought lots of stocks that seems like there’re gonna generate good profits but they always end up performing poorly.
@@kumarvenkatesh6600 I’ll advise you get stocks that are well-positioned to grow through all economic and market cycles. Through proper financial planning I’ve made more than enough profits from the stock market this past months with the help of my FA Frost Hilda who actively ensures I consistently profit from the market, you should probably get someone on your team.
Many of the best stocks to buy for the rest of this year remain heavily tied to economic recovery prospects.
10:03...Wait, what kind of total stock market index fund? A market weighted or equal weighted index fund?
Check the canadien couch potato portfolio, Or as VEQT for a 100% equity portfolio
As a European, the only low-cost way to invest in the USA is through a S&P 500 etf. Since MIFID II regulation, Vanguard's Total US stock market is is not available to us. Other etf's which track the total US market that we do have acces to, tend to have signicantly higher expense ratios. So I don't feel like there's a better option available for EU investors
What about IE00BJ0KDR00 ?
what about VUSA
What about minifuture on the S&p?
aS A EuROpEAn
Adam Geiser ?
Great video again Ben ... Another video and topic that I was looking forward to!
Every investor intention is to build a portfolio that can beat the market yet fails to understand that finding success with these Investments isn't necessary rocket science, but it does require putting in hard work, taking risks and ensuring proper research on the right stocks to invest in.
Investors must carryout research and reviews, but more Importantly have a strategy to help maximise returns.
Diversification is not a bad idea cos it lowers risk without lowering expected returns on a portfolio.
@@mikenorman5172 it's interesting that the best investors of all time have nearly had extremely concentrated portfolio. They key is to know what you're doing, then you can make concentrated bests. For everyone else (most people) diversification is probably idea.
@@annabelwillemse6997 Absolutely, a good strategy is key required to make sure the stocks are still appropriate and aligned with your goals.
@@mikenorman5172 that right diversification is a strategy that aims to mitigate loss and maximise returns.
Amazing video once again. Keep it up. You deserve all the recent growth and you'll be at 100k in no time. :)
Thank you!
is it possible that the reason s&p500 continues to be out performing outside its statistical range is because of the large automatic inflows to index funds over the past 20 years and not because of the underlying fundamentals of its holdings? and as a result, the s&p 500 will continue to out perform as long as the inflows continue to prop up the underlyings?
You may have a point there but I would say over the long run those valuations get more fragile/volatile the more they get farther from their intrinsic value and eventually they would have to correct down to lower valuations. Just like he states in the video, as prices rise, expected returns in the future tend to be lower.
Another great video Ben. it's always good to be reminded of how the past ten years have been particularly incredible for this index. Keep up the great work we learn a lot from your vids
It is a great idea.... Especially when the Euro bond market continues to implode. .,just imagine how high the S&P will go when the whole Euro zone for up in smoke..
I'm pretty sure the S&P would crash if the eurozone would 'go up in smoke' most S&P companies have branches in the EU...
I'll stick with Warren Buffet's recommendation to dollar cost average into the S&P 500. Over the long-term, the S&P 500 will do just fine - maybe not the best, but good enough for a pleasant retirement. Adding international - and determining a percentage in international - just adds clutter and leads people to tinker with their portfolios.
Or it doesn’t if you buy a single world diversified etf. No need to tinker.
@@twiho I am U.S.-based and prefer something to just set and forget. The “problem” with a world market index fund is there may come a time when it has a substantial portion in another country/region (like in the 1980s when Japan’s market cap represented over 50% of the global market cap). That’s too much non-U.S. for me given currency risk and other factors, and would probably lead me to tinker. Know thyself
Great information, this video perfectly describes why I like VTI over VOO
VT over VTI
Thanks for the Video, greetings from Germany.
Only in my 401k and HSA where choices are very limited.
In other accounts I do have some VTI and VXUS. VTI is mostly used as my "park the money in the market while looking for opportunities" fund and VXUS to increase my non-US exposure.
Thank you for the investment advice, Agent 47.
Being Dutch it is like a second nature to think international, I can advise everybody to think international at all times.
Hi Henry I live in Holland and I'm thinking in investing in the S&P500 What is the best way to do it? App or Broker or bank?
@@trendingcompilation8319 Trading 212
Personal observation: everyone is so focused on getting the best returns possible; it seems as if this stops people from investing because they want to do it in the best possible manner instead of committing to a long term plan/strategy/method of execution
I can't shake my desire to only invest in the US market just because it's outperformed so far. I know it's irrational, just can't bring myself to go international despite clear reasoning
Feel the exact same way
Other than 80s when Japan was doing exceptionally well, S&P nearly unanimously beat World markets.
This has blown quite a few preconceptions I had out the water - thank you. It seems better averages are obtained (with respect to indexes) when holding atleast a few (across markets) as opposed to concentrating on a single market.
I’m glad it was helpful!
I’m holding 35% VFV
20% XIC
17% XEF
8% XEC
20% ZAG
Thank you for the info and the reference to the two papers. Looking them up to read now!
I spread my investing into 4 categories: US large growth funds, US large growth funds with high yields, US small growth funds, and international funds (non-US).
Can you clarify which ones in particular? I'm just trying to broaden my knowledge. Thanks.
@@miguelfausto5570 I'll give you only two of my favorites. My favorite growth fund has always been QQQ, which tracks the Nasdaq 100. My favorite growth with high dividends has been MWATX, which tracks the S&P 500. I only buy these for the long term, like 20+ year periods only. They're both cheap right now since the market is way down, so its a great time to buy!
So which stocks we should be for global diversification?
Jack Bogle made some good points on why the S & P 500 is better than owning a global or international fund: 1. Because U.S. is the most "entrepreneurial" nation 2. The U.S. economy is probably the most well-diversified economy 3. The companies that are based in the U.S. have international exposure anyway. This is why the S & P 500 has significantly outperformed global and international funds over the past several years; just compare VOO (S & P 500 ETF) to VT (global ETF)
I have been holding VFV for the US portion of my portfolios but have been contemplating switching out for VUN for a while, since I am looking at 20-30 year time frames. I think this video has helped me to finally make up my mind, so thank you!
I'm curious, what was your final decision in the end and why ? Especially now in 2023.
@@impec I switched my main fund from VFV to VUN and just started buying VUN instead of VFV in my smaller accounts (RESPs). I still think it's the right decision especially for my main fund which I'm not aiming to touch for 25-30 years. In that time frame it seems likely that some companies that are in the S&P500 drop out, while some company that is small now becomes big enough to join the S&P500. To oversimplify greatly, the members of the S&P500 have nowhere to go but down while the majority of the companies in the VUN have nowhere to go but up, and the longer that runs for the more significant it becomes. Time will tell, but theoretically it is the right decision so that's really the best I can do.
I’m very much on the fence between VFV or VEQT. My timeline is a 30 year period where I just purchase every week and every additional dollar that comes my way.
I haven’t been able to find anywhere why VFV isn’t recommended as much. Is it because it’s US focused ?
Simple path to wealth says that being exposed to just the US isn’t a bad thing because the largest holdings all have worldwide influence
@@tommyb0y35 Pretty much, yeah. Outside of the US, there isn't as much belief that the US will continue to dominate the market, or they believe that the US doesn't have as much room to grow anymore as other countries catch up, so people are more averse to VFV. For tax reasons it's also not optimal, for your RRSP it's better to Norbert Gambit a large lump sum of money into USD and put it into VOO (the US equivalent ETF). Home country bias is also another good video from Ben Felix that helps explain why Canadians really like X/VEQT. There's also people in the US who don't really like S&P500 because it's carried by a small number of companies with a lot of losers that have their value inflated by being in the S&P 500 so they prefer something like QQQ(M) instead.
It's funny how the few people I discuss investing with all swear by the S&P500 and completely ignore Canadian and international indexes. They're blinded by recent returns and are falling into the trap of buying what's been hot for the last 10 years. I've stopped trying to reason with them, though maybe I should point them to your video since you're doing a better job than me at explaining this stuff :)
I think it's very common. That's why I thought this video was important.
Its funny i had an argument with a guy named charles from canada about the sp500. Hey charles, is that you?
so if US is not doing well, the rest of the world economy will be booming? hmmmmm
@@bossofcalgary7730 It's not, sorry!
@@ReesesPieces81 well, how would you know. Do you live in alberta?
This channel is a true Gem. I do invest in SPY and I will carefully review my portfolio based on your video.
What I do is invest into ETFs and blue chip stocks but I like to focus on ETFs that mirror the performance of a major index like the S&P 500 for good ROI monthly and long term
Smart, I must commend you because etfs will keep making you solid profits through compounding while the other stocks pays monthly
how can one start investing, can you guide me through getting started
Look up the name Benjamin ravies, that's the name of my fiduciary he trades the market for me with his expertise while I earn he charges a commission on ROi
@@begottivince6711 okay then, I will do just that thanks
Stocks is a great investment and way to create multiple income sources from the proceeds, I have been in the market years now and I have made my fair share of wealth over and over
You're a good man Ben Felix. Well done
My views on investing are heavily influenced by being just over the border from Detroit, and watching how different businesses are in terms of attitude and customer service. I hadn't really considered the S&P-TSX. I'm due for an investment evaluation and will definitely ask questions about it.
Was that you walking the riverfront when I rode by on the Ovation to the Ambassador? lol
So I've had my annual review of investments, and with a solid base established I am now getting into a TSX/S&P index. Thanks again for the vid Ben, the history looks promising in spite some near 10% yearly drops.
Hi i'm from indonesia, despite it short coming the snp500 index is the cheapest way for me to diversitify and get exposure my investment internationally. Thank ben for your information.
OMG i was thinking about how i hate people who say that us stocks get rev from internationals anyway and this video pops up on my recommended.
Yes, doing business outside the US isn't the same has businesses based in the US. While a US based company like Apple does international business, so does a South Korea based company like Samsung. Since we don't know which will perform better, investing in both countries and companies is prudent.
Will be buying FNILX for decades
VTI is the best! My US exposure within RRSP is invested in VTI, VXUS & BND!
VTI is also my biggest holding
Donny Nguyen Great and that’s the way to go!
@@thinkpassiv Hi can I ask why VTI is the best?
John Gonzales VTI is the best because it’s broader US economy vs. VOO which only invests in 500 bigger companies. VTI is blend of small, medium and large companies. In a long run, smaller companies outperform larger ones because of their potential growth. However investing in either ETF will give you the result you want. The main thing is just to add more money into the fund. You can also check my small YT channel video on VTI vs VOO.
@@thinkpassiv Why not go one step further with VWRA and have the global stock market instead of just US?
i m 100% index. 1/3 Cdn 1/3 US and 1/3 MSCI World. although given MSCI includes USA, I am wondering if I should just ditch USA and just keep the remaining 2
You're heavy on US and light on international and emerging markets. There is no perfect allocation, and your US overweight has been beneficial in recent years. Personally I'd up my international and EM exposure. US prices are high which means lower expected returns. International and EM prices are low. It's not a market timing decision, the point is just that a more even allocation across geographies leads to more diversification across potentially different levels of expected future returns.
I don't feel that impressive, but opposite:
1. S&P500 valuation goes beyond the global for an extended period, why is it still bullish? Because the EPS backed its grow.
2. Tracking error is absolutely not a significant error towards the Index.
3. If the global market becomes more correlated and returns less than US treasury bills, then it doesn't make sense to diversify on a global scale.
4. The federal interest rate is at 1.75%, instead of 4-5% like 2008 and 1999. It's not cheap, but not like a 1.3% chance to perform well. (Statistical evidence? full of flaws and bias)
Seeing these many thumbs always makes me feel happy as a loyal S&P 500 investor.
Good video, Ben. :)
Cheers,
Doug
When investing internationally. Without considering the economic performance of a country within which a company operates you are taking a big underperformance risk
Hi Ben, great video. I’m relatively new to investing (H1 2022) and came across your channel from James Shack (UA-cam). I’m working my way back through your videos. Great education. I’m currently purchasing low cost uk etfs. 50% eqqq (Nasdaq) and 50% csp1 (S&P 500). After watching this vid I’m now reflecting on my decision and would like to look into global etfs. Where should I start? PS I assumed I was I had global diversification due to S&P overseas exposure. Thanks for dispelling that belief 👍 PPS I’m based in the UK
The NASDAQ 100 tends to outperform the S&P 500, so if we're investing in indices, wouldn't the NASDAQ 100 be a better bet?
Higher risk.
NASDAQ 100 has indeed performed better than the S&P500 but of course has higher risk and volatility
Look, the S&P500 has 500 stocks while NASDAQ has 100. If one stock does bad, you won't really notice it with S&P500 (ratio 500/1) whereas with NASDAQ is will be 100/1 that's 0,2% to 1%
I think the most simplistic explanation for the performance of the Index was it's extremely low starting valuation a decade ago. Enjoy your videos
If gamble, go stocks
If safe, go index
If vulnerable, go global
If scared, go gold
Nice one!
If you like roller coaster ride, volcano erupting and mystery all at once , go cryptocurrency
Danny F 😂
Thank's for sharing so much knowledge!! Keep it up that way!
I'd love to see a video on how to pick a good total market index fund.
It seems like most of them are market-cap weighted, so owning VTI isn't much different from owning VOO. Is it better to buy VOO, VB, and VO individually, and keep them balanced at 33% each?
Yes...check out 7/12 portfolio
Avus
Dfus
I love the S&P 500 index, but with Berkshire Hathaway ranking in the top 5 of S&P holdings and having BRK owning large parts of Apple, Amazon, and other S&P 500 companies does that not skew the investment? Does it make the S&P 500 index, at least in theory, less diversified? Wouldn't a Total Market Index be better? Great video series! Keep up the solid work.
In my 401k, it is the only non-actively managed option I have. So yes.
I completely agree, however, the reports cited also cherry picked a period ending with the S&P shortly after a crash. So, diversify and lean slightly towards proven funds. That's what I'm doing
What are some global index’s that I should look at?
I wanted to ask the same question because am really confused about which one to invest
As an American, it's great to hear a global perspective. So refreshing.
But personally, I'm all in cash waiting for the recession. Well 40% in bonds 60% in cash. No point in buying high
In theory and logical it makes sence to invest in a global index fund instead the S&P 500. But practical it is very probable to get lower returns. It's like an insurance product, more security will costs you money. Also I don't like the argument, because the past performance was good, then the performance in the future will be not so good. This is first level thinking. Second level thinking would be to ask, why the performance was so great in the past. Perhaps because the US companies are better capital allocators and has returned more money to the shareholders than non-us companies? Of course one thing is sure, the advantage of the US stocks will not last forever. But nobody can predict when this will change. Investing in non-us stocks is betting this change will happen in the near future. But it is probable that US stocks will perform better then non-us stocks for another 50 years. I'm a european and for myself I think the returns of the S&P 500 will not be so good in the future, but I think it is high probable that it will be still as good as the return of a global index fund. But with non-us stocks I have a higher risk of underperforming because the non-us countries still haven't the corporate culture which benefited shareholders like in the US. The most non-us companies are bad capital allocators and doesn't benefit shareholders. This is why non-us stocks performing so bad. An extreme example are japanese companies, where the shareholder is the last thing for what the management is working for. No other country has this long history of shareholder friendly culture like the US and I see no signs, that other countries will adapt to this culture. If the US economy will doing worse, the S&P 500 companies will still earn a lot of money because 40-50% of the revenues comes from outside the US and then I bet this exposure will increase.
s&p500 is up 90% in the five years since this video was posted. that's not a dig at ben but rather an observation about how historically unprecedented the last decade and a half has been. prognostications about the market are largely a waste of time, but I admit I find current valuations concerning.
Your videos are way too good! Ideas are explained clearly and data backed. It's also impressive that you came from an engineering background.
Please tell us a bit more about yourself like how you learned all these knowledge, or give some advice to retailer investors on how and what to learn about the fundamentals (obviously watching your channel is already great!)
Idk in terms of economic outlook, US is clearly far and ahead. What's to stop someone from re allocating to a different market
Great analysis Ben. What do you think about investing in a single broad based global total share market index fund for the equity portion of one’s portfolio? eg a Vanguard MSCI total stock market index fund/ETF?
Also I would love a segment on how to approach the defensive side of portfolio investing eg fixed interest diversification as well as another segment on currency hedging
*"a single broad based global total share market index fund"* wow that was one long ass word
P.S. im new to investment, what does MSCI stand for? Market Share Capital Index?
@@jonasbirkelund United States diversified financial stocks
@@jonasbirkelund MSCI = Morgan Stanley Capital International. It is an index provider.
Thank you for the wonderful videos.