Exactly the point I'm always trying to make... nobody wants to hear it because muh "average diversified market return". Everybody and their grandmas dog think index investing is the holy grail and it's super super safe because market always goes moon. Well until the tech sector goes bye bye and everything will tank.
Thank you, Ben, for all the knowledge you have been giving to us in these past years. I was lucky enough to find your youtube channel when I was 15 years old, right now Im about to turn 20 and your investing advice changed my life for the better in a lot of ways.
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had quarter of a million to create a strong portfolio, which stocks would you choose for better returns?
I think a good portfolio should have three basic things: ETFs for diversification, dividend stocks for cash flow, and leading tech stocks. With your budget, it's a good idea to talk to a fiduciary advisor for expert advice.
Working with an investment adviser is the best strategy for navigating today's stock market, particularly for those approaching retirement. After consulting with one, my initial $450K investment has grown to more than $800K since Q2.
Marissa Lynn Babula is the advisr I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Chiseld jaw : ✅ Amazing hair : ✅ Boulder shoulders: ✅ (let those puppies breathe) Smart as a whip: ✅ Humble and genuine : ✅✅ Congratulations on crushing life and please keep making yt vids maybe even a long format like those of yesteryear!
Congrats on your promotion. You’re by far my favorite resource for financial information!!! So if I understand correctly, the best thing a US investor can do is buy the market, so VT, and then add small cap value with AVUV and AVDV? Im thinking of doing a portfolio of like 80% VT, 10% AVUV, 10% AVDV. If you see this Ben please let me know your thoughts! I love your channel and videos and it’s been amazing seeing you go from assistant portfolio manager to portfolio manager to chief investment officer!
Even after hearing this nuanced, detailed, academic, fact-based analysis... it's incredible the amount of people that will say "Nah" and YOLO QQQT right after.
Great haircut Ben. Looking much better than last time you attempted to have hair. Content is great as well of course. I already don't hold any tech ETFs because of previous videos on this channel.
Some of the best investment advice on TH-cam! Although perhaps I'm biased because it agrees in general with my own investment strategy. Alas, Warren Buffett need not worry about competition from yours truly.
Great discussion. It's always amazing that investment professionals do so poorly when they try to be clever and pick winners and losers, even at the sector level. But then we realize that this is an n-person game with professionals competing against one another. A typical investor is even less likely to benefit from such choices. And so we are told to pick an inexpensive, broadly diversified portfolio AND STICK WITH IT. Because so many people will not follow through, those who do see "unusual" benefits, a.k.a. market returns. Investing well is a very unnatural process, it seems.
1:05 - Are these industry returns worldwide? North America? US? Canada only? I'm surprised by a couple of them, like ship building, but the gold stocks coming out on top in 1974 does sound right for North America or US.
You say, 'just pick high expected return stocks'. You have made it sound so simple. I will run out and buy a dozen. I am glad to know this before anyone figures it out.
@@BenFelixCSIwhen you mentioned high expected return stocks and ETFs, do you mean to refer to factor investing ? High expected returns are literally the holy grail that everyone is searching for. I might have misunderstood your original statement.
Hey Ben, when will you guys launch an ETF in the US? I’ve been following your since the beginning of COVID and I just want you to tell me exactly what my portfolio should look like lol
Thank you for another great PSA video for retail investors like me ! I By the way I found out the other day about this 2024 paper "Passive Investing and the Rise of Mega-Firms" available at SSRN (authors are Hao Jiang, Dimitri Vayanos, Lu Zheng) and they claim in their abstract that "Flows into passive funds raise disproportionately the stock prices of the economy's largest firms, and especially those large firms that the market overvalues. These effects are sufficiently strong to cause the aggregate market to rise even when flows are entirely due to investors switching from active to passive." I must admit that this got me slightly worried even though I remember that some of your past videos show that there is no reason to fear an "ETF bubble". Do you happen to know about this paper from Hao Jiang et al. and do you have any take on it ?
@@BenFelixCSI Thank you, I'll make sure to listen carefully to that episode ! And congrats for your promotion from portfolio manager to chief investment officer !👍
@@BenFelixCSIHow about Invesco MSCI World Equal Weight UCITS ETF Acc ? If my understanding is correct this etf is really close to what you are explaining in this video. Am I wrong? Thank you in advance !
Hey Ben great topic. How do you acutally deal with all the insights of those read papers? Do you have a summary of them in a document or do the videos serve as summaries for your finance knowhow, for future topics (since i assume you dont drop them after the Research) been courious for some while now
How did you read my mind? I was thinking about adding tech fund to my portfolio then I saw this video😅 Thanks for showing us the more sensible way instead of buying in with the hype!
Wonder if there's a delayed effect of winning industries when you compare e.g. developed and emerging markets. Are today's winning industries in developed markets tomorrow's winners in emerging markets, etc.?
Does what you say in this video mean a S&P1000 would perform better than a S&P500, because it would have a less pronounced issue of companies having risen a lot in value already before they enter the index? Wouldn't this mean a simple "Total US Market" ETF should perform significantly better than a S&P500 ETF? Which is not actually the case as far as I know, they seem to perform pretty much the same, with a slight advantage for the S&P500.
Ben, i know you don’t reccomend individual stocks at all, but if someone did want to be like 10% stocks, would you recommend to buy them in a roth or a taxable?
Would be very interested in you breaking down the Tesla paper previewed in this video (“Tesla arrival in S&P500 demonstrates flaws of market cap-weighted indices” in ETF Stream)! If there is a structural flaw of large companies underperforming, is there a better way to allocate indices? I already weight towards small cap value
Hi Ben! Thanks for the newest video and your educative content in general, it's always a pleasure to see you upload! My question is in regards to your podcast episode with Andrew Chen. Did it change your opinion regarding factor investing and small cap and value premiums? Here in EU Avantis recently launched a global small cap value ETF which seems interesting but I'm not quite sure about it anymore. Any chance for a new factor investing video? 😅
Andrew’s research is important but not conclusive. For example, repeating the same analysis in international stocks over the same period would disagree with his findings in the U.S. market. Good idea for a new video on this.
Great video. But - when is a sector not a sector? Isn't the real issue how we classify companies? Alphabet, Tesla, Nvidia, Microsoft, Netflix are all very different in the way they make money. It's more about how realistic future expected earnings are...
I have learnt from your channel since you are an Associate Portfolio Manager. Congratulations to your promotion! On the other hand, I can't help but also notice you are much more confident in front of the camera since then. Maybe you can share some tips on this apart from your brilliant investment advices? 🤣
Super Micro is another really interesting example especially when you consider the timing of reconstitution of different indexes. It skyrocketed and drove performance of the Russell 2000, joins the large cap indexes and drops. I feel bad for anyone who benches to the R2000 this year.
Now I see why his hair grow up so quickly! The man got a promotion. It has to come with a hair package. Jokes aside, congratulations Ben, you deserved it!
If I had to distill this out, It sounds to me like what you’re describing here is a portfolio with a “value” tilt to it will add the risk adjusted outperformance.
That gets you industry diversification but not international diversification. Relevant video: International Diversification th-cam.com/video/1FXuMs6YRCY/w-d-xo.html
sector etfs are great for adjusting portfolio weight based on vibes. I also like investing in industries without having to research specific companies, keeping up with news about new entrants etc. I would rather pay the 0.75% management fee. I think a great way to ensure politicians are aligned with their economic campaigns is if they have to stake their own wealth in industries they claim to support, without investing in any specific company (lower chance of corruption).
Would shifting a diy portfolio towards the DWCPF tend to accomplish this goal? Not only does it get the s&p cast offs that are likely to outperform the s&p additions, but it also would have the future S&P additions *before* they become overvalued. All while remaining diversified across industries.
Hey Ben! Great and insightful presentation. Thanks. I recently stumbled upon the leveraged MSCI World 2x ETF (MSCI WORLD LEVERAGED 2X DAILY (SHLE, UHD)) I was wondering what are the longterm risks because to me this investment product looks like a quite well balanced thing. You have an attractive leverage effect but due to diversification a good low risk profile plus no time to maturity. What do you think about such a product?
I'd like this answer as well. One strategy I've heard to meet in the middle is to purchase 50% market-weighted growth ETF, and 50% market-weighted Value ETF, boosting your value weighing in an index. But maybe that's crap.
Everything is technology, it’s an incredibly broad term. The real question is as tech itself diversifies and specializes, which specialties will expand and win and which will stagnate or deflate and lose.
hi Ben. Love the content. Long time follower. Can you at some point talk about leaps on s&p500 or Nasdaq 100. I have been using this strategy to get more returns on my index funds. I also use 10% of my account margin to invest as 96% is index funds and rest is leaps. So I am comfortable to say I would unlikely loose all my money
Great video. However, if you look at the tech industry in the last 30 to 40 years, it’s evolving, it’s totally different tech in the tech segment. Unlike traditional industry.
my boi ben getting that promotion he rightly deserved!
It’s the fabulous hair that got him the promotion
@@nirorit hahaha reminds me of that simpsons episode "I am nature's greatest miracle!"
90% hair, 10% height
Chief Investment Officer! Congrats, Ben - well deserved.
Amazing haircut, promotion, and look at these shoulders, you're really taking good care of yourself.
congratulations on the promotion
New Title AND Your boy has been hitting the gym 💪
And the hair salon!
Girls are following soon 😂
How you know? It’s literally a headshot and he wearing a black shirt haha
"That tech etf you've been holding"
You mean the index? Lol
😂 that’s actually very funny. Well done.
Exactly the point I'm always trying to make... nobody wants to hear it because muh "average diversified market return". Everybody and their grandmas dog think index investing is the holy grail and it's super super safe because market always goes moon. Well until the tech sector goes bye bye and everything will tank.
@@BenFelixCSI maybe you could bring back Stephen Diehl for another episode of the coping reminder podcast again!
please explain.
@@toasterbotnet you will go bye bye before the index does LOL. good luck keeping up with inflation redneck
Thank you, Ben, for all the knowledge you have been giving to us in these past years. I was lucky enough to find your youtube channel when I was 15 years old, right now Im about to turn 20 and your investing advice changed my life for the better in a lot of ways.
Excellent research Ben. Thank you for all you do!
Hey, CIO, well done! I’ve forwarded your videos to a lot of friends and family members. Great stuff!!
You were always my CIO, Ben
new Title ben? Congrats!
Ben - your videos is like having a personal financial advisor. Thanks for the great content.
Didn't recognise it was Ben at first with hair. Looking good 👍
well congratz on the promo Ben, ur my fav investment advisor on YT
2:28 I love the market winners: Smoke, Guns, Fun, Drugs, Beer.
CIO - Congratulations, Ben. 👏
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had quarter of a million to create a strong portfolio, which stocks would you choose for better returns?
I think a good portfolio should have three basic things: ETFs for diversification, dividend stocks for cash flow, and leading tech stocks. With your budget, it's a good idea to talk to a fiduciary advisor for expert advice.
Working with an investment adviser is the best strategy for navigating today's stock market, particularly for those approaching retirement. After consulting with one, my initial $450K investment has grown to more than $800K since Q2.
'm worried about my retirement portfolio and could use some guidance. How can I get in touch with your advisor?
Marissa Lynn Babula is the advisr I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Chiseld jaw : ✅
Amazing hair : ✅
Boulder shoulders: ✅ (let those puppies breathe)
Smart as a whip: ✅
Humble and genuine : ✅✅
Congratulations on crushing life and please keep making yt vids maybe even a long format like those of yesteryear!
Congrats on your promotion. You’re by far my favorite resource for financial information!!!
So if I understand correctly, the best thing a US investor can do is buy the market, so VT, and then add small cap value with AVUV and AVDV? Im thinking of doing a portfolio of like 80% VT, 10% AVUV, 10% AVDV. If you see this Ben please let me know your thoughts!
I love your channel and videos and it’s been amazing seeing you go from assistant portfolio manager to portfolio manager to chief investment officer!
I've been following Ben since 2017. Thank you! and well deserved promotion! I expect to hear your name on the firm next time!
I don't hold a tech ETF, Ben. Been watching your channel for years and I know better 😊
Sorry youve stayed poor?
Even after hearing this nuanced, detailed, academic, fact-based analysis... it's incredible the amount of people that will say "Nah" and YOLO QQQT right after.
Way to go Ben! Thanks for all of your sage advice over the years!
Unbelievable that one can get such quality content everywhere in the world just on TH-cam. 👍
Great haircut Ben. Looking much better than last time you attempted to have hair. Content is great as well of course. I already don't hold any tech ETFs because of previous videos on this channel.
Congrats on the promotion. Your researching and succinctly disseminating information ability is truly insane compared to none in youtube space.
It's not only about what you buy but also when you buy it. Semi- and tech etf's have done quite good if you bought them several years ago.
My guy Ben Felix keeping it real and keeping me from doing stupid investing decisions. I'll just stick to the indexes.
Some of the best investment advice on TH-cam! Although perhaps I'm biased because it agrees in general with my own investment strategy. Alas, Warren Buffett need not worry about competition from yours truly.
probably about time to change that profile picture
That would be a bad idea. The wig’s price might soon hit bubble territory, and then Ben should sell it!
No. I like him bald . It's kute that way
Time in profile pic beats timing the profile pic.
bad idea, his hair would escape the profile picture circle
🎉 congrats, well deserved!!! 🎉
I wanna be Ben Felix when I grow up.
That’s a shit ton of growing!
Chief Investment Officer 🔥🔥 Congrats and thanks again for the new content.
Gonna be repeating this video in my head as a mantra for the next few months lol. Great content, greater timing. 😉
Interesting stats, as always. I'll just stick with index funds, but I enjoy hearing about interesting research.
Congrats on your promotion Ben!!! Well deserved!!!
Damn Ben you actually have a full head of hair. Thanks for the content man and for educating us for free!
Great discussion. It's always amazing that investment professionals do so poorly when they try to be clever and pick winners and losers, even at the sector level. But then we realize that this is an n-person game with professionals competing against one another. A typical investor is even less likely to benefit from such choices.
And so we are told to pick an inexpensive, broadly diversified portfolio AND STICK WITH IT. Because so many people will not follow through, those who do see "unusual" benefits, a.k.a. market returns. Investing well is a very unnatural process, it seems.
1:05 - Are these industry returns worldwide? North America? US? Canada only? I'm surprised by a couple of them, like ship building, but the gold stocks coming out on top in 1974 does sound right for North America or US.
Those are US industries.
You say, 'just pick high expected return stocks'.
You have made it sound so simple. I will run out and buy a dozen. I am glad to know this before anyone figures it out.
It’s something that can be done systematically, and there are ETFs that do it. I’ll do a video on them.
@@BenFelixCSI heall yeah please. The etf ocean is so big and i just got new water wings
@@BenFelixCSI Very much looking forward to that video. This opened my eyes and I want to change up my portfolio accordingly.
@@BenFelixCSIwhen you mentioned high expected return stocks and ETFs, do you mean to refer to factor investing ? High expected returns are literally the holy grail that everyone is searching for. I might have misunderstood your original statement.
@@BenFelixCSIYes please :)
Congrats on your promotion!! I’ve learnt a lot from your channel. Best regards
Another great video! Simple conclusion through solid analysis.
So you're saying I should sell my 3x leveraged semiconductor ETF?
Is the Russel 1000 a better option then? Catch the up and comers sooner, and continue owning the deletions?
love your stuff buddy, hope you keep making videos!
Superb video, this is presented in such a clear thoughtful manner and has great points.
Hey Ben, when will you guys launch an ETF in the US? I’ve been following your since the beginning of COVID and I just want you to tell me exactly what my portfolio should look like lol
chief investment officer! I see you Ben congratulations!
Thank you for another great PSA video for retail investors like me ! I By the way I found out the other day about this 2024 paper "Passive Investing and the Rise of Mega-Firms" available at SSRN (authors are Hao Jiang, Dimitri Vayanos, Lu Zheng) and they claim in their abstract that "Flows into passive funds raise disproportionately the stock prices of the economy's largest firms, and especially those large firms that the market overvalues. These effects are sufficiently strong to cause the aggregate market to rise even when flows are entirely due to investors switching from active to passive." I must admit that this got me slightly worried even though I remember that some of your past videos show that there is no reason to fear an "ETF bubble". Do you happen to know about this paper from Hao Jiang et al. and do you have any take on it ?
We have an upcoming podcast episode where this is discussed extensively.
@@BenFelixCSI Thank you, I'll make sure to listen carefully to that episode ! And congrats for your promotion from portfolio manager to chief investment officer !👍
@@BenFelixCSIHow about Invesco MSCI World Equal Weight UCITS ETF Acc ? If my understanding is correct this etf is really close to what you are explaining in this video. Am I wrong?
Thank you in advance !
Congratulations Ben, PWL knows they got a good one
Wow congrats on your promotion Ben! So when is that ETF coming out?
Hey Ben great topic. How do you acutally deal with all the insights of those read papers? Do you have a summary of them in a document or do the videos serve as summaries for your finance knowhow, for future topics (since i assume you dont drop them after the Research) been courious for some while now
I keep all my scripts organized and refer back to them. A lot of the organization and recall is in my head though which isn’t great.
How did you read my mind? I was thinking about adding tech fund to my portfolio then I saw this video😅
Thanks for showing us the more sensible way instead of buying in with the hype!
Wonder if there's a delayed effect of winning industries when you compare e.g. developed and emerging markets. Are today's winning industries in developed markets tomorrow's winners in emerging markets, etc.?
Does what you say in this video mean a S&P1000 would perform better than a S&P500, because it would have a less pronounced issue of companies having risen a lot in value already before they enter the index? Wouldn't this mean a simple "Total US Market" ETF should perform significantly better than a S&P500 ETF? Which is not actually the case as far as I know, they seem to perform pretty much the same, with a slight advantage for the S&P500.
Congrats on your promotion Ben!
Excellent analysis Chief!
That factoid about the original S&P500 stocks is fascinating, something to unpack and think about.
Thanks for the vid Ben and congrats!
I just invest in the MSCI Pelosi Insider Trading ETF
If that ETF exists, it's got fraud in the name
I just invested in the "Saudi's Just Gave Jared another Two Billion" fund.
I just invest in Enron Pump & Trump DOGE (Department of Grifter Enrichment) scamcoin
Ben, i know you don’t reccomend individual stocks at all, but if someone did want to be like 10% stocks, would you recommend to buy them in a roth or a taxable?
“Chief Investment Officer”? Nice work my dude
Congrats on the promotion!!
It's great to see you move up the chain! Good job, assistant portfolio manager. 👏🏼
Congrats Ben. You have it all! Good looking, nice thick hair, tall, and Wealthy.
Would be very interested in you breaking down the Tesla paper previewed in this video (“Tesla arrival in S&P500 demonstrates flaws of market cap-weighted indices” in ETF Stream)! If there is a structural flaw of large companies underperforming, is there a better way to allocate indices? I already weight towards small cap value
Hi Ben! Thanks for the newest video and your educative content in general, it's always a pleasure to see you upload!
My question is in regards to your podcast episode with Andrew Chen. Did it change your opinion regarding factor investing and small cap and value premiums? Here in EU Avantis recently launched a global small cap value ETF which seems interesting but I'm not quite sure about it anymore. Any chance for a new factor investing video? 😅
Andrew’s research is important but not conclusive. For example, repeating the same analysis in international stocks over the same period would disagree with his findings in the U.S. market. Good idea for a new video on this.
I’m a simple man. Ben Felix posts a video. I watch. I learn.
Great video. But - when is a sector not a sector? Isn't the real issue how we classify companies? Alphabet, Tesla, Nvidia, Microsoft, Netflix are all very different in the way they make money. It's more about how realistic future expected earnings are...
Congrats on your promotion, Ben!
Hey Ben, great content! Just a question, how do you have access to so many case studies and journals? Is is through CFA institution?
Question. When a stock leaves the index, how does it perform compared to the stock that entered?
I have learnt from your channel since you are an Associate Portfolio Manager. Congratulations to your promotion! On the other hand, I can't help but also notice you are much more confident in front of the camera since then. Maybe you can share some tips on this apart from your brilliant investment advices? 🤣
Great info and data/examples. Tahnk you
Bro you look amazing and congrats on your massive promotion. It sounds life if Dwight Schrute became the CEO of Dunfler Mifflin 😮
Super Micro is another really interesting example especially when you consider the timing of reconstitution of different indexes. It skyrocketed and drove performance of the Russell 2000, joins the large cap indexes and drops. I feel bad for anyone who benches to the R2000 this year.
I have 20% in FISVX (Fidelity Small Cap Value Index). It's up 16.36% YTD.
Now I see why his hair grow up so quickly! The man got a promotion. It has to come with a hair package. Jokes aside, congratulations Ben, you deserved it!
If I had to distill this out, It sounds to me like what you’re describing here is a portfolio with a “value” tilt to it will add the risk adjusted outperformance.
CIO LETS GO! congrats G!
Congrats on making CIO!
Congrats on the promotion Ben!
Great video Ben, thanks!
Which brand of polo shirt are you wearing here? Looks great
So if you invest in sp500 are you still good or should you add something?
That gets you industry diversification but not international diversification. Relevant video:
International Diversification
th-cam.com/video/1FXuMs6YRCY/w-d-xo.html
you are the boss now CIO
sector etfs are great for adjusting portfolio weight based on vibes. I also like investing in industries without having to research specific companies, keeping up with news about new entrants etc. I would rather pay the 0.75% management fee. I think a great way to ensure politicians are aligned with their economic campaigns is if they have to stake their own wealth in industries they claim to support, without investing in any specific company (lower chance of corruption).
Great video, Happy to see your promotion
Very interesting 👌
lol, started considering this this morning… well timed.
This guy is an inspiration. Good things do happen folks. But let me add a nazar here, don’t want to jinx his good fortunes 🧿
Would shifting a diy portfolio towards the DWCPF tend to accomplish this goal? Not only does it get the s&p cast offs that are likely to outperform the s&p additions, but it also would have the future S&P additions *before* they become overvalued. All while remaining diversified across industries.
"that tech etf you're probably holding" ... i feel seen 👀
Hey Ben! Great and insightful presentation. Thanks.
I recently stumbled upon the leveraged MSCI World 2x ETF (MSCI WORLD LEVERAGED 2X DAILY (SHLE, UHD))
I was wondering what are the longterm risks because to me this investment product looks like a quite well balanced thing. You have an attractive leverage effect but due to diversification a good low risk profile plus no time to maturity.
What do you think about such a product?
What are your thoughts on equally weighted index ETFs? Do they capture the value+size premiums well, for a low cost, or are there better alternatives?
I'd like this answer as well. One strategy I've heard to meet in the middle is to purchase 50% market-weighted growth ETF, and 50% market-weighted Value ETF, boosting your value weighing in an index. But maybe that's crap.
Congratz Ben, on the promotion. Is this why you started growing your hair?
😂 ya I negotiated for more hair.
Ben with the glow up.
Everything is technology, it’s an incredibly broad term. The real question is as tech itself diversifies and specializes, which specialties will expand and win and which will stagnate or deflate and lose.
Thank you, Great video!
hi Ben. Love the content. Long time follower. Can you at some point talk about leaps on s&p500 or Nasdaq 100. I have been using this strategy to get more returns on my index funds. I also use 10% of my account margin to invest as 96% is index funds and rest is leaps. So I am comfortable to say I would unlikely loose all my money
Great video. However, if you look at the tech industry in the last 30 to 40 years, it’s evolving, it’s totally different tech in the tech segment. Unlike traditional industry.