The SHOCKING TRUTH About The S&P500!!! 😱

In this video we'll talk about the shocking truth of how the S&P500 index is broken down. If you're invested in this index you may be a little more concentrated than you think!

The S&P500 is one of the most commonly used indexes in the world. It contains 500 of America's largest companies and has achieved a rate of return of about 9.8% for investors!

The chart in the video displays how the FANG stocks (Facebook, Amazon, Apple, Netflix, Google/Alphabet) have an equal weighting to the bottom 282 companies...

This video is not to scare you, but to bring awareness to the S&P500 index. As Warren Buffet always says... Know what you own!

#stockmarket #investing #brandonbeavisinvesting

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About Brandon Beavis:

Brandon Beavis was one of the youngest advisors to become fully licensed here in Canada.

In 2013, Brandon officially began his industry studies. Over the years he has completed his CSC (Canadian Securities Course), CPH (Conduct & Practices Handbook), WME (Wealth Management Essentials), 90-day Investment Advisor Training Program, attended the Manulife Professional Development Workshop in Oakville, ON, and attended countless industry seminars, conferences & events to help further his learning.

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About Marc Beavis:

Marc is a retired Portfolio Manager, having spent over 25 years in the investment industry, managing multi-million-dollar portfolios and working with clients of all ages. He retired in 2021 and is a regular contributor to this channel.

Following his initial licensing back in 1996, he completed a number of industry courses, including the Derivatives Fundamentals and Options Licensing Course, Portfolio Management Techniques, Wealth Management Essentials, Investment Management Techniques, Fixed Income Investing, Hedge Fund Essentials, Portfolio Theory, and of course, the Canadian Securities Course.

When working in the industry, he held the Chartered Investment Manager (CIM) Designation as offered by the Canadian Securities Institute. In addition, Marc was a Certified Financial Planner (CFP) practitioner, the industry gold standard in financial planning.

Disclaimer: The views and opinions shared on this channel are for informational and educational purposes only. Although previously licensed, the contributors are no longer industry participants and are not licensed to provide financial advice. They strive to provide you with educational information in an entertaining manner. Always do your own research and due diligence before investing. Generally speaking, you should consult a licensed investment professional before investing.

[AppleCrider]

Anyone else still blown away by the green screen and Brandon's editing abilities?

[Azel]

This is exactly why I'm nervous about TSLA going into the S&P... it's so large that when it drops, it's going to slaughter investors

[stephfong]

Finally, someone talks about the risks!!! Every book in the world for beginners tells people to buy SP500 index funds.

[Caribou]

I thought most trading in passive products like ETF's happen on the secondary market, without intervention of the Authorized Participant, which means most trades don't affect the prices of the underlying securities.

[athleticinvestor]

Very good breakdown. Everyone needs to know what they are investing in. S&P500 is a great choice for people that want to be safe & conservative. Or people that dont have time or energy to pick individual stocks. S&P can make anyone a millionaire over time especially when you reinvest the dividends!

[niranmojo]

Excellent video. For a Canadian Investor who wants to invest in the big 5 American companies, the safest way i believe is S&P 500 ETF. Especially if you making less than annually

[CryptoJackk]

Amazing video as always bro, your consistent quality content is admirable!

[cristhianagui]

Let's say you invest in the S&P 500 and Amazon declares bankruptcy can you lose your investment or will the S&P 500 kick Amazon out before you lose your Investments, sorry new at this so don't know if my question make sense.

[MoneyUnshackled]

Great video. Loved that pie chart. Very insightful. What do you think of equal weighted S&p500 ETFs?

[UniRestrepo]

Don´t diversify just dollar cost average in sp500

[beatthemarket]

High market capitalization does not inherently mean a stock is expensive. Last year, AAPL had a significant undervaluation even though they were the most valuable company in the world. Nevertheless, good video, keep it up man 👍🏻

[integra]

Could you do a video on how to Organize your swing trading Gains for tax purposes?, how do you keep track ?

[InvestingRobinhoodInvestor]

Good to always assess the holdings before buying a fund

[WhiteBoardFinance]

Good stuff Brandon, look forward to chatting with you soon! :)

[SpicerCapital]

One of the several reasons I DO think it’s a bad idea to just blindly invest in the S&P 500.

[BEYOND-EGO]

Hei does price action works on index or its driven by fundamentals only.?

[BEYOND-EGO]

Hei does price action works on index or its driven by fundamentals only

[pavlin]

While you make a good point about the concentration of money, I feel as though the pie chart you presented was highly misleading. Looking at the IVV portfolio today (18.10.2018), the top 5 companies you show to make up 50% of your pie chart actually only make up 14% of the total weight. The true weight of Apple is 4.27% and not almost 20% as your chart would lead us to believe. I know the chart doesn't show all the weights and you mentioned that you compare only the top 5 against the bottom hundred or so, and the chart may emphasise your point, but to me, it seems overly exaggerated and misleading.

[jordanwrong]

Again great video bud. Investing in the S&P is a momentum strategy (buy more of the winners, sell the losers). Not a bad strategy at all, but like you said, investors should be aware. The equal weight S&P ticker is RSP, however there is not much difference in performance over 10 year period. Type into the stockcharts.com window: SPY:RSP to see the performance difference.

[DeparturesCapital]

Awesome analysis. Love these kind of videos