S&P 500 Explained: What It Is & How To Invest In It

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  • Опубликовано: 9 ноя 2024

Комментарии • 86

  • @SmartMoneywithKai
    @SmartMoneywithKai  9 месяцев назад +1

    ⚡ ALL MY FAVOURITE TOOLS
    smartmoneywithkai.com/tools

    • @nikkhielsingh3927
      @nikkhielsingh3927 4 месяца назад +1

      What is smart money club?

    • @SmartMoneywithKai
      @SmartMoneywithKai  4 месяца назад

      @@nikkhielsingh3927 Hi, it's a community of people interesting in investing and maximising their money where we talk about different topics related to money and investing as well have weekly live calls inside the group 👌

  • @baobab_101
    @baobab_101 16 часов назад

    Hi Kai, I reside in Europe presently and wondered if Vanguard would be appropriate or recommended as a beginner?
    I hope you read this and respond🤞🏽

  • @leandrodese1916
    @leandrodese1916 2 месяца назад +3

    Therefore I’m free to invest in S&P 500 how many times I want, with the amount that I decide and I can sell them whenever I want having my money back immediately? Furthermore, let’s suppose that I want to invest yearly more money, the stocks rise up calculating also my previous gains or starts from 0?

    • @SmartMoneywithKai
      @SmartMoneywithKai  2 месяца назад +1

      Hi and yes you can invest as much and as often as you wish and withdraw whenever you want 👌

  • @SmithlineMuse
    @SmithlineMuse 2 месяца назад +3

    Nobody has explained it this well. Dankeschön!

    • @SmartMoneywithKai
      @SmartMoneywithKai  2 месяца назад +1

      Oh wow, fantastic to hear, thanks a lot, vielen Dank 🙌

  • @KingEnefty
    @KingEnefty 8 месяцев назад +2

    I invest monthly in the S&P500, is the account managed were this is sold and bought back or am I just holding stocks that rise and you sell years down the line? I was told the stock compound invests but I don’t understand how.

    • @SmartMoneywithKai
      @SmartMoneywithKai  8 месяцев назад +1

      Hi Jack 👋 When you invest monthly in the S&P 500, you're generally buying shares of a fund that tracks the index, like an ETF or mutual fund. It's more about holding onto these shares and letting their value grow over time rather than actively buying and selling.
      The "compounding" part comes into play as the value of these shares increases and dividends (if any) are reinvested. This way, your investment has the potential to grow more because you're earning returns on your returns, not just on your original investment. It's like rolling a snowball down a hill - it picks up more snow (value) as it rolls (time passes). Keep at it, and let time work its magic! 💪📈 Remember, I'm just sharing my journey, and it's crucial to do your own research or consult a professional for personalized advice. Keep the questions coming! Cheers

    • @KingEnefty
      @KingEnefty 8 месяцев назад +1

      @@SmartMoneywithKai thank you appreciate the quick response 🙂

  • @dee_fury
    @dee_fury 12 часов назад

    clean, sweet explanation

  • @amaros2118
    @amaros2118 8 месяцев назад +2

    Bro hope u reply;
    I am planning to invest in sp500 buying stocks but am from Morocco.. I can't register in Vanguard or fedility.. they are just for Us and Europe residents .. do you have any idea of a broker I should use to invest in sp500?

    • @SmartMoneywithKai
      @SmartMoneywithKai  8 месяцев назад +1

      Hi mate, in Morocco you can use Interactive Brokers, they are available. And then you can buy S&P500, either VOO or VUSA from Vanguard👌 Cheers

    • @amaros2118
      @amaros2118 8 месяцев назад +1

      @@SmartMoneywithKai I appreciate that thanks.. I'll see .. if I have any issues I'll tell u
      🥰🥰

    • @SmartMoneywithKai
      @SmartMoneywithKai  8 месяцев назад

      @@amaros2118 Great and my pleasure ✌

  • @EvolvedX69
    @EvolvedX69 2 месяца назад +1

    If going through vanguard, i found the VOO. And vanguard has a 500 index fund “admiral shares”. Would this be a more worthwhile investment instead of the VOO? The index fund has the expense ratio at 0.04. Vs 0.03.

    • @SmartMoneywithKai
      @SmartMoneywithKai  2 месяца назад +1

      Hi 👋
      Great question! The choice between VOO and Vanguard's 500 Index Fund Admiral Shares (VFIAX) really boils down to a few key factors:
      Structure: VOO is an ETF, while VFIAX is a mutual fund. ETFs like VOO trade like stocks throughout the day, giving you more flexibility. Mutual funds, on the other hand, only trade at the end of the day.
      Minimum Investment: VFIAX has a minimum investment requirement (usually $3,000), while you can buy VOO with any amount that covers at least one share.
      Expense Ratio: The difference in the expense ratio is minimal (0.03% vs. 0.04%), so it's not going to make a huge difference in the long run.
      If you prefer trading flexibility, go with VOO. If you're already set on a mutual fund and can meet the minimum, VFIAX is a solid choice. Both are excellent, low-cost ways to get S&P 500 exposure.
      Cheers

    • @EvolvedX69
      @EvolvedX69 2 месяца назад +1

      @@SmartMoneywithKai Thank you for the reply! Would the VFIAX pay dividends? I know the etf doesnt. But i saw somewhere saying the index gives quarterly dividends, would it be worth the 3k minimum for the dividends? Or would the etf be about the same in the long run?

    • @SmartMoneywithKai
      @SmartMoneywithKai  2 месяца назад +1

      Hi, not sure, as I don't invest in mutual funds, but I would assume so. I just prefer ETF's, they are easily tradable and I can move in and out as I wish, some of those funds have longer timelines. Cheers

  • @ghadeerhassan9740
    @ghadeerhassan9740 16 дней назад +1

    Hi Kai! I'm from Norway. what do you recommend me invest in? I only have about 5000k to invest. and do you recommend trading 212, VUSA OR VUAA? I'm 23 y collage student. I can't mess this up and I have never invested in anything before

    • @SmartMoneywithKai
      @SmartMoneywithKai  12 дней назад

      Hey, great to see you thinking about investing early! At 23, you have a powerful asset on your side: time. Here’s how I’d approach this if I were in your shoes:
      Start with the Basics: With €5,000, you’re in a good position to begin with a solid foundation. A low-cost, broad-market ETF like an S&P 500 tracker is a fantastic way to go, as it provides exposure to the largest U.S. companies, offering growth potential over the long term.
      Trading 212 and ETFs: Trading 212 is a great beginner-friendly platform with zero-commission trading on ETFs, making it ideal if you’re looking to keep fees low.
      Choosing Between VUSA and VUAA: Both VUSA and VUAA track the S&P 500, but with one key difference:
      VUSA: Distributes dividends directly to you, meaning you'll see cash coming in quarterly.
      VUAA: Accumulates dividends within the fund, so your investment grows without paying out dividends directly.
      If you want the satisfaction of seeing cash dividends, go with VUSA. But if you prefer to keep everything reinvested automatically for growth, VUAA could be a good fit.
      Avoid Overcomplicating: Since it’s your first investment, keep things simple. Stick with one or two funds rather than chasing trends or risky assets. This way, you can learn as you grow.
      Consistency Over Time: If possible, try to add to your investment consistently, even if it’s a small amount. Regular investing builds discipline and makes the most of long-term compounding.
      Starting with an S&P 500 ETF through Trading 212 (either VUSA or VUAA) would give you a low-cost, diversified approach that’s ideal for beginners. And since you’re a college student, just investing what you can comfortably afford without putting your lifestyle or studies at risk is key. You’re on a solid path-good luck! Cheers

  • @Nobody-e6e
    @Nobody-e6e 9 месяцев назад +3

    I buy the VUAA instead of the VUSA. I don't want to pay extra commissions to reinvest the dividents. I want to raise my portfolio as much as possible it's not the time to live off of the dividents yet.

    • @SmartMoneywithKai
      @SmartMoneywithKai  9 месяцев назад +1

      That's awesome and great option as well, always a very individual decision. Thanks for sharing. Cheers

  • @quatie
    @quatie 4 месяца назад +1

    How do I invest in the S&P 500 with trading 212 or other apps?

    • @SmartMoneywithKai
      @SmartMoneywithKai  4 месяца назад

      Hi, you can check this video here where I show you how ruclips.net/video/rSZoiykzKNU/видео.htmlsi=OLody0K4A17basyI&t=1065 Cheers

  • @Ps-we3pp
    @Ps-we3pp 4 месяца назад +1

    hi, am i allowed to change from accumulation to income, or is it a one time choice?

    • @SmartMoneywithKai
      @SmartMoneywithKai  4 месяца назад

      Hi and yes, it depends on which ETF you buy. If you went for accumulating then that's what it does for you. If you want to switch you would need to buy the same but in distributing form 👌

    • @Ps-we3pp
      @Ps-we3pp 4 месяца назад

      @SmartMoneywithKai thanks ill subscribe. Is it fine to buy SDRP S&P 500 dist in London if I'm based in London? Since SDRP is 0.03% . I'm not sure what the difference is between UCITS and normal version . I can only purchase Dist with normal version

    • @SmartMoneywithKai
      @SmartMoneywithKai  4 месяца назад +1

      Great and thanks and yes, that's perfectly fine, in fact that's exactly the same I buy as well, SPY5 on LSE in USD and distributing 👌 Will publish a new video on this topic in a few minutes 🙌

  • @tux4075
    @tux4075 9 месяцев назад +2

    Thank you so much for the video and spreading this information.

  • @mrwolfTAYLORfarian21
    @mrwolfTAYLORfarian21 24 дня назад +1

    if i have £50k should i put all in the S&P and relax?

    • @SmartMoneywithKai
      @SmartMoneywithKai  23 дня назад

      Hi, I can't tell you what to do with you money but could be a sensible move indeed. Depends on a lot of factors but if you want a passive investment, less volatile with solid growth over-time I think that could be a smart way to go about it. I do it as well 😉 Cheers

  • @CB-dl5uj
    @CB-dl5uj 5 месяцев назад +1

    I’m new to this and want to invest some money. Should I be worried that the risk rating is a 6/7?

    • @SmartMoneywithKai
      @SmartMoneywithKai  5 месяцев назад

      Hi, not sure what you invested in exactly? 6/7 seems high and does not sound like you invested in the S&P, which is one of the less risky investments you can do, though all investment types have inherent risk. Cheers

    • @CB-dl5uj
      @CB-dl5uj 5 месяцев назад +1

      @@SmartMoneywithKai thanks so much for your replies. When I go on my investments, this is what it says; S&P 500 UCITS ETF - Accumulating (VUAG)
      When I first purchased it, it said the risk was 6/7(vanguard) which is confusing as I thought it was low risk? Thanks again for your reply

    • @CB-dl5uj
      @CB-dl5uj 5 месяцев назад

      @@SmartMoneywithKai I have purchased the one in your video S&P 500 UCITS ETF - Accumulating (VUAG)
      The risk indicator is a 6/7. Can you help me out. Do I need to change it?
      Thank you

    • @SmartMoneywithKai
      @SmartMoneywithKai  5 месяцев назад

      Hi and not sure how they evaluate that, but 6/7 seems high, not sure how they would rate investing in Tesla shares 20/7 😂 Investing in 500 different companies across different sectors seems pretty diversified to me and returning over the last 30 years 8-9% year on year has a solid track record 👌 Cash might be less risky but also less attractive, so I am personally very happy with that level of risk. Cheers

  • @Europe0008
    @Europe0008 9 месяцев назад +1

    before I do not investment interested when I see your video I'm happy you are my Boss

  • @Airsoft-Wingy
    @Airsoft-Wingy 5 месяцев назад +1

    Hey great video, ive been wanting to get into traditional trading such as S&P 500 i appreciate the coverage you give it here. I have one question tho , even if you are investing long term can you opt to pull money out of postions if you anticpate a bear market or are you locked in? I dont know much about the dynamic at play if you are taking dividends there maybe stipulations i am not aware of.

    • @SmartMoneywithKai
      @SmartMoneywithKai  5 месяцев назад

      Hi 👋
      Glad you enjoyed the video! When investing in the S&P 500 or any other index, you’re not locked in-you can sell your positions anytime, even in a bear market.
      For long-term investors, it’s generally better to stay the course and ride out market fluctuations. However, if you anticipate a downturn and want to pull out, you absolutely can. Just be aware of potential tax implications and the risk of missing out on a rebound.
      Dividends don't usually come with stipulations that lock you in; they are just a nice bonus while you hold the investment.
      Cheers

  • @Lipos007
    @Lipos007 9 месяцев назад +3

    Always with a smile! Good job on the vid and the positive attitude as always. I know some days may differ in mood but you are a pro 🎉🎉🎉 and i always enjoy watching

    • @SmartMoneywithKai
      @SmartMoneywithKai  9 месяцев назад +2

      Aww, thank you 🙏 As you said, sometimes we are all a bit like the markets, some up's and some down's but overall, just like our investments, our mood should mostly be positive 😉 Cheers

  • @karelsubrio6253
    @karelsubrio6253 Месяц назад

    thanks

  • @Europe0008
    @Europe0008 9 месяцев назад +1

    your every video for me knowledge 🎞️🎞️📈📈📈🙏

  • @joshdaking2324
    @joshdaking2324 5 месяцев назад +1

    Is it ok investig in S&P 500 using Trading 212 or is it worth setting up an account with Vanguard or Blackrock?

    • @SmartMoneywithKai
      @SmartMoneywithKai  5 месяцев назад +1

      Absolutely, in many ways I think even better if later on you plan to add a different ETF from a different provider, plus you get interest on your uninvested cash and you can move your portfolio to another broker if you wish to do so one day, that's why I also buy my ETF through Trading 212 👌 Cheers

    • @joshdaking2324
      @joshdaking2324 5 месяцев назад +2

      @@SmartMoneywithKai awesome, thanks Kai. I really appreciate your channel and advice 🙏🏾

    • @SmartMoneywithKai
      @SmartMoneywithKai  5 месяцев назад +1

      That's awesome to hear and my pleasure 🙌

  • @niklassarri108
    @niklassarri108 Месяц назад +2

    Why is the sort never written out in the graphs. Stockholm All-share today is at 999.59. Sure. But 999.59 of what? That's like: "How much is that car?" And the answer is: "It's 234.44." It is so annoying, I haven't seen one graph that acutally tells you what the graph shows. Is there an explanation for this? It's is so obvious that it is Trillion USD, so we don't tell you. It doesn't make sence. The daily temperature chart would tell you: " 21 degrees Celsius". Not just "It's 22 warm today."

    • @SmartMoneywithKai
      @SmartMoneywithKai  Месяц назад

      Hi 👋 That’s a great observation! It can definitely be frustrating when graphs aren’t clear about what the numbers represent. The reason stock indices like the Stockholm All-share don’t specify the units (like USD or EUR) is because the index number itself isn’t tied to a specific currency or amount of money-it’s more of a relative value. It reflects the performance of a group of stocks over time, not a direct dollar (or kronor) figure. So when it shows 999.59, it’s an abstract figure representing how the entire market is performing compared to a baseline (often 100 or 1,000 when the index started). Cheers

    • @niklassarri108
      @niklassarri108 Месяц назад

      @@SmartMoneywithKai Ok, so its more like percent? When you divide two of the same sorts?

  • @maureenbennett809
    @maureenbennett809 15 дней назад +1

    Great! Can you just invest a lump sum and leave it?😁

    • @SmartMoneywithKai
      @SmartMoneywithKai  12 дней назад +1

      Thanks and yes, you could, though averaging it out in regular amounts over time and continue to add to your portfolio might generally be a better way to go about it. Cheers

    • @maureenbennett809
      @maureenbennett809 12 дней назад +1

      @@SmartMoneywithKai 👍

  • @cryptounicn9542
    @cryptounicn9542 9 месяцев назад +1

    Great video Ki. Thanks. I’m still torn between SP500 and FTCE whole world. I currently have both but would just like to invest in one.

    • @cryptounicn9542
      @cryptounicn9542 9 месяцев назад +1

      Also I have one Coca Cola share jus for fun😂

    • @SmartMoneywithKai
      @SmartMoneywithKai  9 месяцев назад

      Good choice, can never go wrong with Coke 👌😉

    • @SmartMoneywithKai
      @SmartMoneywithKai  9 месяцев назад +2

      Thanks a lot 🙌 Don't know FTCE too well but just compared both performance over the last 10 years and S&P clearly is way ahead so my choice would be easy 😉

  • @takuhmandih
    @takuhmandih 3 месяца назад +2

    S&P 500 and US500 the same?

    • @SmartMoneywithKai
      @SmartMoneywithKai  3 месяца назад +1

      Hi, never heard anyone call it US500, but just had a quick Google and it looks like people mean the S&P 500 when they say US 500 👌

  • @CB-dl5uj
    @CB-dl5uj 5 месяцев назад +1

    I have just invested £500 to get me going. How often will I see a change in my investment? Does it happen daily/weekly/monthly?
    Thanks

    • @SmartMoneywithKai
      @SmartMoneywithKai  5 месяцев назад +1

      Hi 👋
      Congrats on starting your investment journey with the S&P 500! Here's what you can expect:
      Frequency of Changes:
      Daily: The value of your investment can change every day the stock market is open. The S&P 500 index updates throughout the trading day as the prices of the underlying stocks change.
      Weekly/Monthly: While you'll see daily fluctuations, it's more common to assess your investment performance on a weekly or monthly basis to get a clearer picture of trends and avoid reacting to short-term volatility.
      What to Watch:
      Daily Prices: You can check daily updates through your brokerage account or financial news websites.
      Monthly Statements: Your broker typically provides monthly statements showing the value of your investments and any changes.
      Remember, investing in the S&P 500 is a long-term strategy. It's normal for the market to go up and down in the short term. Focus on the bigger picture and your long-term goals.
      Cheers,
      Kai

  • @khiderudite4987
    @khiderudite4987 3 месяца назад

    Please I'm in Ghana Africa and i can't sign into it what should I do

    • @SmartMoneywithKai
      @SmartMoneywithKai  3 месяца назад

      Hi, Interactive Brokers is available for users from Ghana 👌

    • @khiderudite4987
      @khiderudite4987 3 месяца назад +1

      @@SmartMoneywithKai okay

    • @khiderudite4987
      @khiderudite4987 3 месяца назад +1

      @@SmartMoneywithKai sir please I'm 16 and not allowed to create an account. What should I do

    • @SmartMoneywithKai
      @SmartMoneywithKai  3 месяца назад

      @@khiderudite4987 You can ask your parents to open a junior account in your name 👌

  • @Europe0008
    @Europe0008 9 месяцев назад +1

    That time I'm investment zalando 3 shares growth 📈

    • @SmartMoneywithKai
      @SmartMoneywithKai  9 месяцев назад

      If you like the stock great, not for me though 👋

  • @Europe0008
    @Europe0008 9 месяцев назад +1

    I have dream buy tesla shares still waiting everyday value down

    • @SmartMoneywithKai
      @SmartMoneywithKai  9 месяцев назад +1

      If you want you can buy them of course, for me Tesla is much too risky and volatile 😉

  • @getro-uz8zv
    @getro-uz8zv 9 месяцев назад +1

    Thanks for continues updates! I am super excited about how my stock investments is going so far, making over $160k every week is an amazing gain🥰

    • @SmartMoneywithKai
      @SmartMoneywithKai  9 месяцев назад +2

      Not a bad week😉 Earning $160K a week, you should have your own channel, we can all learn from you 😂😂😂

    • @viewer4life
      @viewer4life 7 месяцев назад +1

      ​@@SmartMoneywithKaihe's lying 😂

    • @SmartMoneywithKai
      @SmartMoneywithKai  7 месяцев назад

      @@viewer4life He seems to be the new Warren Buffett 😂😂😂

  • @charlesdalast5604
    @charlesdalast5604 7 месяцев назад

    Slow down. This information may be new to a lot of people.

    • @SmartMoneywithKai
      @SmartMoneywithKai  7 месяцев назад +1

      You can slow the playback speed in the RUclips players, most of my viewers make it faster so it’s impossible to please all😉 Cheers