Who Should NOT Invest in Total Market Index Funds?

I have told you in many of my videos that low-cost total market index funds are the most sensible investments for most people - just own the market. I stand by that statement, but as true as it is, there is a lot more nuance to making good asset allocation decisions. How do you know if you’re like most people? And if you’re not like most people, how should your portfolio be different from the market?

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[umbertopappalardi]

Ben Felix is the only person standing between me and bad investment decisions.

[IncomeBoost]

I’m glad you’re posting videos again! I was so looking forward to it 😊

[ReisseT]

BASED FELIX THE FINANCIAL FATHER FIGURE WE NEVER HAD.

Big thanks from a young Canadian guy. You have single handedly made me interested in financial literacy and educated in the subject matter. And the rational reminder podcast is a blessing to listen to. Thank you Ben.

[David.Marquez]

It's always a good day when there's a new Ben Felix video!

[jellovendigar]

Always so happy to see a new video from Ben. This one however was a little dense for me

[ajp]

You have to be the best Youtuber that talks about passive indexing. There is so much new to learn and no recycled content

[pepperleg]

You just know it's gonna be a banger Ben Felix vid when he starts out by referencing a paper from 1952.

[Diego-valdivia]

It's nice that you have given a name to giving time to constantly monitoring stocks, quarterly reports, and speculation in "Monitor cost". I've had this discussion with several highly intelligent friends that want to outperform everyone like good homo economicus but don't really understand the enormous opportunity cost implicit in giving 20-30 hours of attention per week at scanning numbers. Life is out there people, live it.

[AurelioPita]

The special ones. The problem is that everyone think they are special 😂

[alexx]

Love this channel Ben, keep up the videos!

[massafelipe]

First part of the video was a pure flex. I own IWQU and IWVL, (world sector neutral quality and world enhanced value) to achieve some exposure towards value and profitability but mostly feels like owning the market. And I bet that the difference won't be that much in the long run.

[markknecht]

As always, thanks for your insights and help

[egal]

The best Investment Channel I know, thanks for keeping up the wondeful content.

[Soupy]

After 24 years of investing I've found no one can beat the market, just buy the index. Some investors have beaten the market for some time periods but only for a short time. Even Warren Buffett under performed the market for 20 years. Only now, with 50% of Berkshire Hathaway's holding in Apple and Apple at an all time high does Buffett outperform the market. Save yourself the time and headaches and just buy the index.

[DIY_FInance_Guy]

Thanks Ben, great video. I’d love to hear your thoughts on sector tilting, specifically towards consumer staples and healthcare, both of which appear to have produced better returns and lower volatility for many many decades.

[WWC]

Great summary of the podcast and a big fan of you, Cameron and your guests.
The biggest question that comes to my mind is, how does the average investor and the iCAPM multi-factor-efficient portfolio look like (you have to know that to know in which direction of risk to shift your own portfolio, I guess)? If I my understanding is correct, you make the point that it's the market-cap-weighted one, if that is true, why?
Since a big part of investors are institutional and got regulatory constraints, are these part of the average investor?

It seems that government bonds are integrated through the risk-free-rate in the models?
How does the additional risk through a.e. small cap (and) value stocks compare to a portfolio that is short on gov.bonds, while long on market-cap-weighted index-funds? Are both ways in the end the "same"?

[dietbajablast]

Even Ben had a chuckle that he FINALLY got to the question in the video title at 6:50 into the video.

[PapaCharlie]

First I've heard of ICAPM, pretty cool. Instead of an Efficient Frontier, it's like an Efficient Volume in multiple dimensions. Or I guess what's optimal is the intersection of the multifactor volume with the risk-free rate surface. Neat!

[DNTsmokeCRACK]

Could a person with a guaranteed pension be considered not average? Would that guarantee enable them to take more risk assuming they could stomach the volatility. If so, do you believe adding 10-20% scv tilt, through an advantis fund, to something like a 60/20 US/EXUS would be enough to have any meaningful advantage? Asking for a friend. A very curious friend lol

[Sebastian-lbqg]

Great video as always! :)
I'm also considering to make educational videos. With which software do you cut and animate your videos? I love the style with you in the foreground and animations left and right of you.