BEST ETF for High Returns? (Better than the S&P 500?)
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- Опубликовано: 13 дек 2024
- I'm sharing the ETF that has given me the highest returns this year. This has been one of the best performing ETFs in my Stocks and Shares ISA, and I plan to hold this Exchange-Traded Fund for the long term.
I would personally not hold this ETF in isolation as it doesn’t provide a diverse/ balanced investment portfolio.
The ETF is:
iShares S&P500 Information Technology Sector (IITU)
In this video I compare its performance to Vanguard's S&P 500 accumulating fund (VUAG)
Another ETF that is similar to IITU that you could research is the Invesco Information Technology S&P 500 (XLKQ)
In this video we look at the advantages and disadvantages of investing in this ETF vs the S&P 500, and briefly discuss a potential tech stock bubble.
Investing Qualifications I hold:
International Certificate in Wealth and Investment Management (Chartered Institute for Securities & Investment)
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DISCLAIMER
Capital is at risk. Any information given in this video is for entertainment purposes only, and does not act as legal or financial advice. Your financial decisions are your own responsibility, and if you do require advice please contact a qualified Financial Adviser, Wealth Manager or Financial Planner.
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Are you already invested in this ETF? Let me know in the comments!
I wanted to reiterate that I personally wouldn't hold this ETF in isolation as it doesn't provide the diversity that an investment like a FTSE All-World ETF does. However, I've been really impressed with its performance since holding it.
As always I wish you all the best with your investments.
All in on my ISA, this week has been tough
I currently have 75% SCHD and 25% SCHG Roth IRA. Brokerage account is 35% SCHD, 40% VOO, 25% VUG! Combine balance $875k I am 48 years old... I have 100k in cash and about three years until retirement..
Congratulations!! I lost a lot chasing individual stocks and I feel pretty stupid for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market.
NICE. I'm doing some research on VOO now, seems very solid. Congrats on nearing retirement. 3 years will fly.....unless of course you hate your job lol....
Love my job. 30 years as a mechanic for a Major Airline. Great company. Just wish I knew about stocks, index funds, growth/dividend paying ETFs years ago. But still with a good CFA I am doing great. It's a nice hands-off way to approach it. *Lina Dineikiene* manages my funds and she has a great team. I conservatively follow her recommendations and market entry and exit points, and tbh this system has increased my prospects of making money.
Wooooo crushing it! Awesome!
Man bro, you nailed it. This is my combo that I’ve used to beat the market for many years now. VGT + SCHD + VOO (I like to add the market just in case) has grown my portfolio like crazy.
Hi Rachel, great video, very informative and great insight. Please keep them coming. Thank you 👏
Thank you so much Neil 😊👍 I certainly will!
Great video Rach. I am new to investing, 3 months now. My portfolio is up 3% already with 75% being ITFs split up amongst 4 ETFs, and 25% being high dividend shares. My 4 ETFs are an S&P500, a FTSE all world, a semiconductor specialist one and finally IITU. Your videos have been great and have helped me loads. 25 years of drip feeding into this to supplement my pension and I will be hopefully be living a life of luxury 😊
Thanks so much for your comment Tony! I’m so pleased the videos have been helpful. I wish you all the very best with your investments and hope they continue to do well 👍😊
Great video Rachel. Thank you for sharing.
Thank you so much for taking the time to watch. I hope you found the video interesting :)
Great video. Good coverage of the ETF and all the risks associated :)
Thank you so much Tom! I really appreciate it 😊
Another great video Rachel
👍💪
Thank you so much!!!
Super video and always appreciate your insights. Thank you!
Thank you so much ☺️
I have 5% of my portfolio in XLKQ, up 18% since starting in October last year. I also have 40% in VUSA and the remainder in VWRL. My 5% in XLKQ is my ‘risk’ investment, just because it is so concentrated. Considering making it a bigger part of my children’s JISA though!
Thanks so much for watching and for your comment too. I’m thinking it could be a great investment to add to my children’s JISA’s too! Lucky kids! 😊
@@creatingbalancefinance yeah I just wish HL would offer partial shares like T212, might be able to get a look in 🤔
Excellent content. Thanks for sharing.
That’s very kind of you. Thank you!
Thanks for your video. As always it helps. Cheaper alternative. Is there an income version of this
Not invested in IITU but I have backtested portfolios with it included and it's a great option for growth. As you say its concentrated and a little too so for my taste so I opt for XNAQ.
Thank you so much for sharing. That’s really interesting. Wishing you all the very best with your investments 👍😊
Interesting choice for a small satellite holding though personally I.would like the next big thing in terms of sectors to focus on.
Thanks so much for watching Anthony. Yes, we are definitely in agreement on this being a satellite holding 👍
Great idea for a video 😊 thank you.
im investing in snp500 but also put 1k to IITU i bet it will be good for the future
Wishing you all the best with it!
Instead of IITU ..the L&G Global tech trust C, has a lot more holdings (250), and is less risky (as a result), yet has done almost as well over 10 years. It seems to be a good hybrid of EQQQ, IITU and SMGB.
Thank you so much for sharing Liam. Thats really inetersting and I'll take a look at it.
dont personally hold IITU, due to holding EQQQ and believe there some overlap perhaps? nice vid!
Thank you so much for watching and commenting too! Yes, there’s a lot of overlap with EQQQ 😊👍
EQQQ weighting is different. Top holding is Microsoft at 8.5%, rest all under 8%, but IITU has MS at 22.5%, closely followed by Nvidia and Apple. So if you think top tech still has room to grow, IITU should gain more. IITU + IUCM will give you similar holdings to EQQQ but heavily weighted to Top 10 tech companies.
Same here EQQQ for me
Thanks so much for sharing Gary 👍 I used to hold EQQQ too.
@@creatingbalancefinance if you dont mind me asking, what diverted you away from EQQQ and did you put it into IITU or something else?
Hi Rachel , Great video , great content. I came across great EFT SPYL in Trade Republic Bank and very low expense ratio 0.03 . Can u make a video this ETF please,Thank you
Thank you so much for sharing! Yes, of course. I think I included it in a recent video which covers the S&P500 and its the cheapest provider I could find.
Wishing you all the best
Could you maybe cover the franklin ftse india ucits etf
Thank you so much for the idea 👍😊
9:42 I am invested in this ETF And feel that the AI Revolution is the new industrial revolution . I believe that the returns from this ETF will be really great in the long-term.
Really interesting! Thank you so much for sharing 👍
so why dont u invest directly in AI companies like nvidia and not the whole ETF which has losers in it and drags down the return?
Thank you
No problem Paul 👍😊
Could we invest in all ETFs like ittu i.shares and vanguard at the same time ?
I currently am allocated in FWRG as my main fund (Similar to yourself), however I’m eager to get more exposure to Tech ETF’s such as IITU or others.
My uncertainty is, global funds bet on Non-US regions to have strong returns, and potentially even outperform the US itself. And as the majority of tech ETF’s are almost all US stocks, supposedly you’re betting against yourself in owning both in your portfolio? - just a concern I had. I’m curious to your reason for owning both?
Thank you so much for your comment and for watching too. I like the diverse base a FTSE All World gives an investor, and I personally am happy to have different ETFs which crossover as long as I'm very aware of the crossover and the implications of this.
Wishing you all the very best with your investments.
I have 100% in IITU, i just feel like thats all i need, Although its more volatile, it has recovered quicker than VUSA, have a look at the graph between Dec 2021 - June 2023 and compare that with VUSA's, it recovered in June rather than August 2023 (VUSA)
Thank you so much for sharing 👍 really interesting.
@@Rallysport1000 wow
Brave. Rate of growth isn’t sustainable on the tech funds. Basically just buy 3x companies which are top of market.
Very brave. However, I recently read an interview with an ISA millionaire and he got there largely by investing in tech. So if you have time on your side it can definitely work out well.
No diversification, terrible investing strategy
Well done
Thank you so much Stephen 👍😊
Hi Rachael, if only we had a crystal ball, investing would be so much more fun! Who knows where the tech sector will be in a few years time, who knows what influence the US elections will have on the S&P500 or Ukraine or Middle East. So many variables that it does look more like a lottery than a science. However, if you play it safe, only invest small amounts in the most risky ETFs then hopefully you can outperform inflation and make investments worthwhile. Love the kitchen btw!
Thanks so much Peter. A crystal ball would be so helpful…the next few months will be interesting.
Thanks you so much re the kitchen. We put it in when we did an extension a couple of years ago. I spent a lot of time on a kitchen planner tool so I’m glad it paid off 😂
Have a lovely day!
Hi. How could we have a diversified stock portfolio, holding IITU as one of the funds? I'm particularly interested to see if there is a ETF that covers S&p500 excluding IITU or VWRP excluding IITU. Will appreciate if you make a video on that
Thank you so much! That’s a great idea for a video 👍
Nice Video..just wondering if there is any ETF for FMCG sector in S&P 500? Thanks
Thanks so much for watching! I’ll look into it 👍
Thank you very much..❤
No problem 😊
I have iitu as my biggest and best etf and individual stock too. 84% iitu, 11.5% nvda, 2.5 FFIE, 1.5 SMGB. Should have some more in SMGB and sink some into SWDA and VUAG or EQGB.
Could undo a video comparing IITU and XLKQ? Thanks.
I hoping for AI bubble to burst. A correction or a mean reversion will be good.
It’ll be interesting to see. Thank you for watching and for your comment too 👍😊
Hi Rachel, long time investor, but I still love your videos for new tips and insights. Hope you don't mind me saying, you're better off recording in a room with some soft furnishings to reduce the echo. Keep up the good work.
Thank you so much for watching and for your lovely comment! Yes, I totally agree filming in a room with more soft furnishing. The noise from the rain was terrible in our office so I resorted to the kitchen 😂 looking forward to some summer weather and less rain! 🌞
Thank you again for your kind comment 😊
You have a wonderful kitchen
Thank you so much! We did the extension a couple of years ago and I spent way too much time on the online kitchen planner tool 😂
its a strong island
IITU vs HMWO?
Thanks so much for watching. They’re very different ETFs. Do you hold them both? Wishing you all the best!
Isn't it up over 224% in 5yrs, wouldn't this make the annualised returns an average of 44% a year instead of the 26% you mentioned?
Or am I calculating it wrong 🤔🤷♂️ it's been a long day. 😂
I know the feeling! It’s been a long day here too! It can only get better 😊
The 224% would include the compounded return over the 5 years so the annualised return would still be just over 26% 😊👍
Compounding is just awesome! 8th wonder of the world!
Have a lovely evening.
@@creatingbalancefinance Thanks Rachel, same to you.
All S&P 500 ETF's went up , the index was in a bull market........,which index wasn't... Now it's time for inversed ETF's, even for the FTSE- 100!..., and you can hold them for the 'long term', 3yr😉...At that time you can pick up this technology ETF, you will definitively buy it at the lowest price ever!🤓....
Thanks so much for sharing! 👍
Can you show me how to buy an ETF in the a J Bell app on Android phone? I can't for the life of me figure it out!😂😂
Oh no!! Unfortunately I don’t use Android! I hope AJ Bell can help 😊👍 wishing you all the best!
Please….😅 SMH crushes all ETFs right now.
Thanks for watching. It is doing well.
So buy Microsoft, Nvidia, Google, Apple and Meta yourself, earn more and don’t pay a fee to anyone?
Thanks so much for watching! You could do that but then you may miss out on some of the excellent performance of some of the other companies in this ETF - like a couple of the stocks I feature at the end of the video.
Wishing you all the very best with your investments 👍
do it
XLKQ has no.decent.daily.violume which is why it's not a good etIf in my humble opinion. Iwas buying IITU in 2022 when IITU was unloved. I was also buying Legal and General.Global Technology at the dame.time. Sold them both and broke even...I didn't see the AI leap coming in 2023....meh of men's!IITU and XNAQ are worth buying at the bottom of the tech cycle. I just stick with the S&P 500 nowadays. Tech funds are a real headache. XNAQ OCF is only 0.20,%. Buy when they go south. They always do eventually. And then recover.
Thank you so much for watching and for your interesting comment. Yes, I started with IITU in 2022 as well. Wishing you all the best with your investments 👍