Investing in the S&P 500
HTML-код
- Опубликовано: 2 авг 2019
- Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
The S&P 500 is an index of 500 US stocks that covers roughly 80% of the available US market capitalization. It is one of the oldest and best-known stock indexes in the world. The S&P Dow Jones Indices website says that there are 3.4 trillion US dollars indexed to the S&P 500. That is 3.4 trillion US dollars invested in index funds that are tracking the S&P 500 index. That is a lot of money invested in the S&P 500.
Referenced in this video:
Do Global Stocks Outperform US Treasury Bills?: papers.ssrn.com/sol3/papers.c...
Global equity investing: The benefits of diversification and sizing your allocation: www.vanguard.com/pdf/ISGGEB.pdf
International Diversification Works (Eventually): www.aqr.com/Insights/Research...
The S&P 500 Goes Supernova: multifactorworld.com/the-sp-50...
Catch up on the latest investing advice, insights and white papers here.
www.pwlcapital.com/teams/pass...
------------------
Follow me on
- Twitter: / benjaminwfelix
- LinkedIn: / benjaminwfelix
PWL Capital Blog Post: www.pwlcapital.com/should-you...
Follow PWL Capital on:
- Twitter: / pwlcapital
- Facebook: / pwlcapital
- LinkedIn: / pwl-capital
You can find the Rational Reminder podcast that I co-host with Cameron Passmore on
Apple Podcasts: itunes.apple.com/ca/podcast/t...
Google Podcasts: www.google.com/podcasts?feed=...
Spotify Podcasts: open.spotify.com/show/6RHWTH9...
#investing #strategies #marketefficiency
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.
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.
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
Your video never aged! Another proof of high quality contents! THANK YOU! THANK YOU! THANK YOU!
Thx you Ben....clear, to the point, no waffling, no rhetoric, no shambling. Just the way it should be.
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.
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
What an incredibly articulate video! Really appreciate the insight! Very happy that I found your channel.
Great video again Ben ... Another video and topic that I was looking forward to!
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!
glad to see the channel growing
Ben Felix is doing a great job. Thank You. Keep up the good work!!!!
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!
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!
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.
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
Man you are my financial advisor I'm not even joking. Greetings from Italy. Thank you.
I'm learning English by your videos and also improve my investing knowledge :)
Thank you.
Good video, Ben. :)
Cheers,
Doug
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!
Your project is worth it. Learning a lot from your channel.
Not even 5 minutes in and you have a new sub 💯
This is by far the best investing channel on RUclips... and I’ve watched a lot of investing channels on RUclips. 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.
@@user-km1hp2zq3jI think you might be able to contact him via PWL capital.
Thank's for sharing so much knowledge!! Keep it up that way!
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!
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"
Here at the airport at 5am and see Ben Felix’s video.
I love it.
Thanks!
Amazing video once again. Keep it up. You deserve all the recent growth and you'll be at 100k in no time. :)
Thank you!
Thank you for the info and the reference to the two papers. Looking them up to read now!
"Investors changing risk preferences ..." Thanks Ben, I spit out my coffee.
Professional way to say panic hahaha
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
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.
Excellent research and well presented. Thank you!
I love that you use academic papers to provide support for your argument.
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.
Great video! Well done and researched. You got a new subscriber!
Just switched all my VOO funds to VTI. Thanks for the analysis!
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!)
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
That's it. I consider myself a broadly diversified index fund guy. Thanks for the invaluable info Ben. Thank you really.
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 a total rookie to stocks and ETF‘s. But I‘ve learned a lot watching RUclips 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.
The exceptional performance is mainly attributed to the start period being a stretched rubber band to the downside.
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
Thank you for the investment advice, Agent 47.
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.
This video has aged very well. VT and chill (with bonds allocation)
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"
You're a good man Ben Felix. Well done
The stock hitman should be ur RUclips name. I think it’s pretty dope😂
A M 😂😂
😂😂😂
I’m glad to know investing in the S&P 500 is not the end of the world.
Thank you for the wonderful videos.
Finest finance RUclips personality out there
Great information, this video perfectly describes why I like VTI over VOO
VT over VTI
0:00 The value of the channel outperforms the growth
RRR Infinite ROI
Underated/valuable comment
This video makes a great case for some holdings outside of S&P500
I actually understood that, awesome good job
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.
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...
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* 😆
I look forward to your videos
I’m holding 35% VFV
20% XIC
17% XEF
8% XEC
20% ZAG
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 RUclips 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.
Hi Ben, great video. I’m relatively new to investing (H1 2022) and came across your channel from James Shack (RUclips). 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
Ben,
Great video and info. If one still wants to own S&P 500 ETFs then it should be complemented by an S&P 500 Completion index or a combination of S&P 400 and S&P 600 ETFs. I don't think that such a combination of ETFs would be any different from a Total market index ETF. But then you loose the convenience of owning one ETF vs 2 or more ETFs in order to get the full US stock market exposure.
Note Buffet's recommendation for the average investor: 90% in VOO and 10% is VGSH :-)
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.
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.
Hi Ben, thanks for your videos!
Thanks for watching and commenting!
Thanks for your content!
When investing internationally. Without considering the economic performance of a country within which a company operates you are taking a big underperformance risk
I’m just going to get a puppy.
I laughed.
That's a good asset allocation decision.
@@BenFelixCSI Ben, I invest in the total US market called VTS which tracks 3500 companies. Do I need to also own some S&P500? Or is that doubling up. Thanks
Ben, thanks for another awesome video. I always wonder if the added tax burden makes international exposure worth it, especially if you are American and your domestic market is a large percentage of the world market: For example, your intl. portfolio invests in tencent which suddenly decides to return 50% of its equity as dividend, and China immediately holds 30% of that as dividend tax. Yes, you can get potentially some of it back as "foreign tax credit" but only under very specific circumstances, and even if you do, you still come out with a net loss. Furthermore, if you did that in a retirement account, there's no way to recoup that loss.. For many international funds, this happens silently, I think, and an investor is none the wiser...
Great info as usual!
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!
I have just begun to invest in Canada however I am an investor in my country ( Brazil ) for over 15 years. since I am pretty new in Canada I am thinking about beginning to buy S&P 500 what you think, thanks
Thanks for the Video, greetings from Germany.
Ben Felix preachin'! Speak that knowledge!
Enjoyed the video. Do you have any recommendations for index funds that give exposure to non-us value or non-us small-cap stocks?
In another episode he recommends AVUV and AVDV.
@@alankoslowski9473 hey, what is the episode's name ?
You’re my drugs..
Thx, for the good video.
It helps me a lot !
Thanks for watching!
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.
This channel is a true Gem. I do invest in SPY and I will carefully review my portfolio based on your video.
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.
Hey Ben, awesome work, thepresentation gives lots of value, but the thesis of the video is shaky if it does not compare weight of the tech sector globally vs the Us. If the earnings of the tech sector grow faster than others an if the concentration of Us is higher the average of the world, it possible that the higher P/E is justified. So the video seems a bit biased to me without including this data.
Thanks for another interesting Video. I would much appreciate your thoughts on EM ETF. Are EM ETF a must have if aiming for a globally diversified portfolio?
Great content!
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 was so Educational omg am following 😅
Hi Ben. Thank you for another great video. I shared your channel on Facebook. That's why I'm so hesitant in buying into the US Index funds because it just can't keep going up like this. It's probably not the best strategy but I just feel better with the bulk of my funds to be invested in the Canadian market. I hope I'm doing the right thing!
Nope. The TSX is pretty bad for a single investment. It's a very small piece of the global market and heavily weighted in financial and commodity stocks. You should still diversify.
I agree with Brad. I would not only invest in Canada.
Great video, but what are the International, Canadian and other index you recommend to invest to have better diversification?
Hey Ben, thanks for another great video! I’m just trying to wrap my head around this. Because the S&P 500 is a committee based index that is actively managed that would lead me to believe that some companies will eventually get dropped and replaced. So even though the S&P 500 doesn’t contain all of 3,500 U.S Stocks wouldn’t it eventually contain the top performers? I’m assuming if a stock takes off that’s not part of the original 500 index it would get added and the under performers would get dropped. Maybe the problem with that is the gains would be late to the party if a stock was added to the index after the fact (once it’s already exceeded expectations)?
You got it at the end of your question. S&P, based on the selection criteria, will often miss out on the early large gains of a company. Example: money.cnn.com/2013/12/06/investing/facebook-sp-500/index.html
@@BenFelixCSI is there really that much affect at all though? Due to those upcoming companies being such a small allocation.
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.
Another home-run. Damn Felix, how many more can you make? Are you allowed to suggest any global index funds? How about Canadian index funds you like (which I can purchase on ToS). I really enjoy the videos.
Beginning last year through up until now (and I plan on continuing through the end of this year) I have been putting my money in the Schwab Total Stock Market mutual fund.
In my 401k, it is the only non-actively managed option I have. So yes.
Wait wait wait ... What??? 0.57%.
That crazy. Dammit, i have to have a completely different mind set after that.
Hi Ben, You might not see this since the video is a bit old, but in case you do, I have a question: In the bootstrap analysis referenced in the beginning of the video, were monthly returns assumed to be statistically independent?
I suspect that there might be some positive correlation between returns month-to-month, and ignoring these (which I suspect would result in heavier tails) might make the S&P 500's performance look more reasonable (though still not _expected_) in reference to the historical data. Not 100% about all of this logic but I'm interested in hearing what you think about this.
wow I have learned something today. Subcsribed!