I could be wrong, but I don’t believe they are available in Canada. You do have online discount brokers, such as Interactive Brokers, Questrade, Wealthsimple Trade, National Bank Direct Brokerage, TD Direct Investing, and several others. However, I’ve never used any of those. You might want to search for the best discount brokers with low fees. Sorry I wasn’t more help.
Returns can be listed in a few different ways and it can depend on who is reporting the information. That's way I usually always give the CAGR (compounded annual growth rate) and state it includes the dividends. We also need to be careful when seeing the 3,5, & 10 year "average" returns firms report on their Mutual Funds and other products. These are inflated numbers. For example, if a fund had these returns over 3 years (-15%, 15%, & 9%) the they would take an average and state the the 3 year average as 3% rate of return. However, the compounded annual growth rate, which is how all investments should be measured, would be 2.1%. They like to report a simple average because it looks better to their customers. For a bit more on this, you could check out this video. th-cam.com/video/iqeeYb5GPME/w-d-xo.html
Great explanation & ASMR lol! Thanks Mike! Ytd performance of VOO has been interesting. Major gains from tech giants are helping markets rise, while other non tech companies in the sp500 aren't doing so well. What do you think of investment in RSP for 2023 and beyond, to address concentration risk? RSP is the equal weight sp500 fund with expense ratio of .2%
Nothing wrong with the RSP at all. It has done well and still has a decent expense ratio, but, over the past 10 years, it has underperformed the normal S&P 500 somewhat is it's trailing so far this year, too. Before that, I believe it did a bit better than the normal S&P. Going forward, if someone wants a little extra exposure to the investing potential of A.I., the normal S&P may offer that a little better because companies like Microsoft, NVIDA, Amazon and so on are in good position to benefit from A.I. or will gobble up or invest in smaller upstart companies with new applications. However, if someone wants an ETF based around the U.S. market, both can be considered good choices. Personally, going forward, I would probably choose the normal S&P, though.
@@MikesFinancialEdge that makes sense. I thought about RSP as there might be a lot of hype about A.I. resulting in an overpriced tech sector. RSP was in my mind, a way to gobble up some of the sp500 underperformers. Btw, I have been a VOO investor for a decade now and 100% agree with your video. Keep at it brother! Enjoy the long weekend! 🙂👍
Nice to hear you have been benefiting from the VOO ETF during the past decade. Investing steadily every month using the benefits of dollar cost averaging will pay off and you will enjoy the benefits in the future. If you have not watched it, you might check out my video on dollar cost averaging. It has some surprising charts. If interested, here it is: th-cam.com/video/vLTdlN7VJTM/w-d-xo.html And, as mentioned, the RSP is still a good choice and would lessen the tech exposer, if someone wants to do that.
Happy to hear you found the channel and I hope you enjoy the vidoes! An and ETF for the S&P 500 is an index fund. However, not all index funds are ETFs. Exchange-Traded Funds (ETFs) and Index Funds share many similarities. ETFs are traded on stock exchanges like individual stocks, allowing you to buy and sell them throughout the trading day at market prices. Index Funds are any investment funds designed to mirror the performance of a benchmark, like the S&P 500, by replicating its composition. But, an Index Fund can be structured as either an ETF or a mutual fund. When structured as mutual funds, Index Funds are typically bought and sold only at the end of the trading day at the net asset value (NAV). ETFs generally tend to be more tax-efficient than mutual funds due to their structure, which may minimize capital gains distributions if held outside of a retirement account. Additionally, Index Funds structured as mutual funds often have slightly higher expense ratios. There are a few more subtle differences, but I hope this helped clarify things a bit. When making recommendations, it's often simpler to just go with low-cost ETFs.
@@MikesFinancialEdge thanks. I was looking at my options through Fidelity for my IRA and the index fund FXAIX has an expense ratio of 0.015 vs ETF SPY at 0.094. Strictly looking at that I went with FXAIX. I’m still learning but didn’t want my cash sitting. I intend to invest and hold so unless the expense ratios or returns are somehow better I didn’t feel the need for an ETF at this point.
Outside of a retirement account, ETFs tend to be slightly more tax-efficient. However, within your IRA, it doesn't matter. FXAIX is an excellent choice. Nice job! If I were going to recommend an ETF for the S&P 500, I’d go with SPLG, VOO, or IVV before SPY, just due to the expense ratio. FXAIX is a mutual fund indexed to the S&P 500, but it has no loads and a very low expense ratio. Thus, for any core holding of a long-term investor, it's a great choice. Also, there will be ups and downs in the market going forward, but take comfort in using dollar-cost averaging and avoid silly mistakes. If you are interested, I’m going to link a couple of videos here for you, and of course, I hope you check out others on the channel when you have time. Very nice to have you on board.😊 1) Why Dollar Cost Averaging is the BEST Way to Build Wealth: th-cam.com/video/QVUqNbvaGWI/w-d-xo.html 2) The Most Important Lessons in Investing: th-cam.com/video/WxEYYZSo4wI/w-d-xo.html
@@MikesFinancialEdge thanks for the input on my investment! I’ve already watched those videos as well but watching others now. Once I start my non retirement brokerage account I’ll definitely pay more attention to the ETFs.
Yes, the S&P 500 can be an excellent core holding, but certainly doesn't have to be the only one. It's a good choice for beginning investors and younger investors with a longer time horizon. Also, remember that over longer periods of time, like 10, 15, or 20 year periods, the majority of all professionally managed mutual funds underperform their S&P benchmark. However, over the short-term, it can be volatile. Thus, it's a good idea to understand your own risk tolerance and invest accordingly. I plan to do a video on risk tolerance in the coming weeks.
It’s okay, but personally, I would choose the S&P 500 over it. MSCI is also market-cap weighted, so more of the money goes to the big companies, which are predominantly in the U.S. anyway. In fact, approximately 25% of MSCI’s allocation is in the top 10 companies, which are the same top 10 in the S&P 500, where around 34% is invested. MSCI has underperformed the S&P 500 a bit in recent years, both over the short term and longer periods, and it also has a slightly higher expense ratio. Additionally, the need for international exposure isn’t as critical as it was decades ago. Back then, it made sense to invest outside the U.S. to tap into developing economies and balance the U.S. market. However, in today’s global economy, most large companies are truly global, with significant revenue streams from outside the U.S. For example, approximately 41% of the revenue generated by S&P 500 companies comes from international markets. That said, there’s nothing wrong with MSCI-it’s a fine choice. But for my own investments, I’d stick with the S&P 500. Thanks for checking out the video! For more on this topic, you might find this video interesting: th-cam.com/video/TdhzZaqTWPQ/w-d-xo.html
There's no question that over a 30- and 40-year period, Berkshire beat the S&P 500. In the past 10 years, it has nearly equaled it. S&P 500 pays a small dividend, and Berkshire does not. Berkshire has been a great holding for people over the years! I'll defer to Mr. Buffett and add that he believes individual investors should use the S&P 500 for their investments. In fact, his Will states that 90% of what he leaves his wife should go into a low-cost ETF for the S&P 500. He has also said that because of the size of Berkshire now, it will be very difficult to beat the S&P 500 going forward. All that said, I think some Burkshire stock and be a great component of an overall portfolio.
Im getting an spy etf i guess but i pledge 3000.00 usd single stock nvidia first. Heard its risky but willing to try it one time i guess. If it triple money within a year would be great still have fun trying even if i lose. But when dust settled would be trying to put 10,000.00 usd in etf than put another 10k in another. All within 1 year than year 2.
Remember, when you buy the S&P 500, you are getting NVIDIA and all the other big technology companies. In fact, currently, over 6% of the investment is going into NVIDIA and almost 7% into Microsoft. NVIDIA has had a remarkable year, but no one can predict the near-term future. It might outperform the S&P 500 over the next year, but there's always much more risk with owning an individual stock. Either way, hoping to triple your money within a year isn't really a reasonable expectation. But I do wish you luck! Thank you for the comment, and if you don't mind, share an update down the road.
Hello Everyone - Would love to hear your thoughts about the S&P 500 and how many of you use it as one of your core holdings.
Great video as usual! Thank you!
I hope it was helpful. Thank you for taking the time to leave a comment!
Enjoyed your video. subscribed. thanks.
Happy to hear you enjoyed the video. Thank you for the comment and for subscribing.
Are vanguard schwab, fidelity brokers available in n Canada?
I could be wrong, but I don’t believe they are available in Canada. You do have online discount brokers, such as Interactive Brokers, Questrade, Wealthsimple Trade, National Bank Direct Brokerage, TD Direct Investing, and several others. However, I’ve never used any of those. You might want to search for the best discount brokers with low fees. Sorry I wasn’t more help.
So much great info in this video. Had to come back and watch it after seeing your video comparing the S&P 500 to the Total Market funds. Great stuff.
Yep - A good one to pair with that other video.
@@MikesFinancialEdge I watched a couple other videos about the S&P 500 and they were a disappointment after seeing this one. Great info
Sorry you were disappointed, but it is nice to hear you like this one!
Hey Mike, does the Trailing annual returns for any ETF would include Dividend reinvested?
Returns can be listed in a few different ways and it can depend on who is reporting the information. That's way I usually always give the CAGR (compounded annual growth rate) and state it includes the dividends. We also need to be careful when seeing the 3,5, & 10 year "average" returns firms report on their Mutual Funds and other products. These are inflated numbers. For example, if a fund had these returns over 3 years (-15%, 15%, & 9%) the they would take an average and state the the 3 year average as 3% rate of return. However, the compounded annual growth rate, which is how all investments should be measured, would be 2.1%. They like to report a simple average because it looks better to their customers. For a bit more on this, you could check out this video. th-cam.com/video/iqeeYb5GPME/w-d-xo.html
Great explanation & ASMR lol! Thanks Mike!
Ytd performance of VOO has been interesting. Major gains from tech giants are helping markets rise, while other non tech companies in the sp500 aren't doing so well.
What do you think of investment in RSP for 2023 and beyond, to address concentration risk? RSP is the equal weight sp500 fund with expense ratio of .2%
Nothing wrong with the RSP at all. It has done well and still has a decent expense ratio, but, over the past 10 years, it has underperformed the normal S&P 500 somewhat is it's trailing so far this year, too. Before that, I believe it did a bit better than the normal S&P. Going forward, if someone wants a little extra exposure to the investing potential of A.I., the normal S&P may offer that a little better because companies like Microsoft, NVIDA, Amazon and so on are in good position to benefit from A.I. or will gobble up or invest in smaller upstart companies with new applications. However, if someone wants an ETF based around the U.S. market, both can be considered good choices. Personally, going forward, I would probably choose the normal S&P, though.
@@MikesFinancialEdge that makes sense. I thought about RSP as there might be a lot of hype about A.I. resulting in an overpriced tech sector. RSP was in my mind, a way to gobble up some of the sp500 underperformers.
Btw, I have been a VOO investor for a decade now and 100% agree with your video.
Keep at it brother! Enjoy the long weekend! 🙂👍
Nice to hear you have been benefiting from the VOO ETF during the past decade. Investing steadily every month using the benefits of dollar cost averaging will pay off and you will enjoy the benefits in the future. If you have not watched it, you might check out my video on dollar cost averaging. It has some surprising charts. If interested, here it is: th-cam.com/video/vLTdlN7VJTM/w-d-xo.html
And, as mentioned, the RSP is still a good choice and would lessen the tech exposer, if someone wants to do that.
Just found your channel. Can you share your view on an S&P ETF vs Index Fund? Thanks!
Happy to hear you found the channel and I hope you enjoy the vidoes! An and ETF for the S&P 500 is an index fund. However, not all index funds are ETFs. Exchange-Traded Funds (ETFs) and Index Funds share many similarities. ETFs are traded on stock exchanges like individual stocks, allowing you to buy and sell them throughout the trading day at market prices. Index Funds are any investment funds designed to mirror the performance of a benchmark, like the S&P 500, by replicating its composition. But, an Index Fund can be structured as either an ETF or a mutual fund. When structured as mutual funds, Index Funds are typically bought and sold only at the end of the trading day at the net asset value (NAV).
ETFs generally tend to be more tax-efficient than mutual funds due to their structure, which may minimize capital gains distributions if held outside of a retirement account. Additionally, Index Funds structured as mutual funds often have slightly higher expense ratios. There are a few more subtle differences, but I hope this helped clarify things a bit. When making recommendations, it's often simpler to just go with low-cost ETFs.
@@MikesFinancialEdge thanks. I was looking at my options through Fidelity for my IRA and the index fund FXAIX has an expense ratio of 0.015 vs ETF SPY at 0.094. Strictly looking at that I went with FXAIX. I’m still learning but didn’t want my cash sitting. I intend to invest and hold so unless the expense ratios or returns are somehow better I didn’t feel the need for an ETF at this point.
Outside of a retirement account, ETFs tend to be slightly more tax-efficient. However, within your IRA, it doesn't matter. FXAIX is an excellent choice. Nice job! If I were going to recommend an ETF for the S&P 500, I’d go with SPLG, VOO, or IVV before SPY, just due to the expense ratio. FXAIX is a mutual fund indexed to the S&P 500, but it has no loads and a very low expense ratio. Thus, for any core holding of a long-term investor, it's a great choice. Also, there will be ups and downs in the market going forward, but take comfort in using dollar-cost averaging and avoid silly mistakes. If you are interested, I’m going to link a couple of videos here for you, and of course, I hope you check out others on the channel when you have time. Very nice to have you on board.😊
1) Why Dollar Cost Averaging is the BEST Way to Build Wealth: th-cam.com/video/QVUqNbvaGWI/w-d-xo.html
2) The Most Important Lessons in Investing: th-cam.com/video/WxEYYZSo4wI/w-d-xo.html
@@MikesFinancialEdge thanks for the input on my investment! I’ve already watched those videos as well but watching others now. Once I start my non retirement brokerage account I’ll definitely pay more attention to the ETFs.
Great - And thank you for joining the channel. It's appreciated. Let me know if you have any more questions down the road.
It’s hard for me to put everything in the s and p 500. I feel more comfortable also having small cap, small value, and international.
Yes, the S&P 500 can be an excellent core holding, but certainly doesn't have to be the only one. It's a good choice for beginning investors and younger investors with a longer time horizon. Also, remember that over longer periods of time, like 10, 15, or 20 year periods, the majority of all professionally managed mutual funds underperform their S&P benchmark. However, over the short-term, it can be volatile. Thus, it's a good idea to understand your own risk tolerance and invest accordingly. I plan to do a video on risk tolerance in the coming weeks.
This is a great video and this channel deserves way more subscribers!
Thanks for the comment and support!
agree
Thank you!
How do you think about MSCI world? It could be Big diferent to long time? Thanks
It’s okay, but personally, I would choose the S&P 500 over it. MSCI is also market-cap weighted, so more of the money goes to the big companies, which are predominantly in the U.S. anyway. In fact, approximately 25% of MSCI’s allocation is in the top 10 companies, which are the same top 10 in the S&P 500, where around 34% is invested. MSCI has underperformed the S&P 500 a bit in recent years, both over the short term and longer periods, and it also has a slightly higher expense ratio.
Additionally, the need for international exposure isn’t as critical as it was decades ago. Back then, it made sense to invest outside the U.S. to tap into developing economies and balance the U.S. market. However, in today’s global economy, most large companies are truly global, with significant revenue streams from outside the U.S. For example, approximately 41% of the revenue generated by S&P 500 companies comes from international markets.
That said, there’s nothing wrong with MSCI-it’s a fine choice. But for my own investments, I’d stick with the S&P 500. Thanks for checking out the video! For more on this topic, you might find this video interesting: th-cam.com/video/TdhzZaqTWPQ/w-d-xo.html
Hi. Can you do a video about income investing? Please.
Yes, I'll add that to the list of ideas and maybe get to that later this year. Thanks for watching and the suggestion.
S and p or berkshire?
There's no question that over a 30- and 40-year period, Berkshire beat the S&P 500. In the past 10 years, it has nearly equaled it. S&P 500 pays a small dividend, and Berkshire does not. Berkshire has been a great holding for people over the years! I'll defer to Mr. Buffett and add that he believes individual investors should use the S&P 500 for their investments. In fact, his Will states that 90% of what he leaves his wife should go into a low-cost ETF for the S&P 500. He has also said that because of the size of Berkshire now, it will be very difficult to beat the S&P 500 going forward. All that said, I think some Burkshire stock and be a great component of an overall portfolio.
👍
Thank you for the thumbs up. Glad you liked the video! Thanks for the comment. I missed this earlier.
Im getting an spy etf i guess but i pledge 3000.00 usd single stock nvidia first. Heard its risky but willing to try it one time i guess. If it triple money within a year would be great still have fun trying even if i lose. But when dust settled would be trying to put 10,000.00 usd in etf than put another 10k in another. All within 1 year than year 2.
Remember, when you buy the S&P 500, you are getting NVIDIA and all the other big technology companies. In fact, currently, over 6% of the investment is going into NVIDIA and almost 7% into Microsoft. NVIDIA has had a remarkable year, but no one can predict the near-term future. It might outperform the S&P 500 over the next year, but there's always much more risk with owning an individual stock. Either way, hoping to triple your money within a year isn't really a reasonable expectation. But I do wish you luck! Thank you for the comment, and if you don't mind, share an update down the road.