Is The S&P 500 All You Really Need?

*The Investing Apps I Use*

💸 - Trading 212 - Get a Free share up to £100. Use Code: TOBY in your app if you do not receive your free share.

💸 - InvestEngine - Get between £10-50 when you sign up and deposit £100 (T&Cs Apply)*

💸 - Lightyear (EU and UK)- Free Stock

*//Want to speak with me 1:1?*
Email me here with your needs and we can book a 1hr 1:1 call.

*//Want to order the Wifi Smart Clock/ Stock Ticker seen behind my videos?*

*//My Favourite Credit Card for Points*
💸 - American Express Gold Rewards Card - Get 30,000 Points - £0 First Year

Disclaimer: This video is provided for information and entertainment purposes only. Please seek the help of a qualified regulated financial professional for any advice. Capital is at risk. Some links are affiliates and I will earn a commission from using them.

*InvestEngine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority (FRN: 801128)

[doowompp]

your videos are always so clear and concise, really helps someone like me with very little life experience to understand investing and the bigger picture!

[Abdul_Rahman]

Great video.
That’s why I’ll continue investing in global all cap. The global all cap is very similar to the S&P500 anyway.
I also allocate a very small percentage to VHYL and a UK dividend index fund

[TheMillennialMint]

At the end of the day, S&P 500 averages 10% a year over the long term. Could I do better than that? Sure. Am I comfortable with a 10% average return? Definitely.

[_JCKL_]

Great videos, I love the focus on history, a sign of wisdom.

[steve]

The beauty of a tax free wrapper (such as a UK ISA), is that you can jump horses with no tax penalty. So within my ISA I ride the fastest horses (at the moment like tech ETFs, EQQQ, IUCM, IITU, etc.). If a few top tech companies suddenly have a correction and the ETFs don't look so strong, I can sell a proportion or all and switch to a global ETF (e.g. SWDA) or emerging market ETF (e.g. EMSM) or even physical gold (SGLN) with no CGT penalties. It does mean that I need to check the portfolio every day though. For my GIA, I just stick with global index tracker plus a few more risky ones because if the risky ones cause a loss, I can factor this in to any other gains and at least it helps the CGT figure at the end of the tax year (when I sell 20K to move into the ISA). Not sure if this is good practise or not, but I somehow can't stand spreading my 'bets' out on all the horses in the race, knowing that many horses will fall or only walk across the line by tea time when I can simply bet on the favourites!

[EffectiveInvesting]

Great video, Toby! Been wondering about this topic for a while. Thought the Hartford chart on US v International cycles was particularly insightful. Happy investing! ✌🏼

[Dasm.]

I've said it before and I'll say it again. Fantastic video as always mate. Thank you for putting out these great investing videos for all of us to enjoy. They've helped so much!

[ChrisShawUK]

I'm 60% FTSE and 40% s&p and in year five of drawdown.

My move into a&p was only in 2022, my first change in strategy for 24 years.

I'm not really a chop and change kinda guy

[mrrscta]

Excellent video! Watching from Montevideo, Uruguay

[chqshaitan]

Great video, I didn't know there was a committee in the mix, interesting:)

[benjaminvolant]

It all makes sense to me. And budding investors need to hear this too. Good info in there

[razaraja]

informative video as usual.. got developed world and emerging market on 90/10 i think it covers pretty much every country. quite happy with that.

[leona_devon]

You are right, you need a wider spread, I do this, I have a pie, with s&p 500, FTSE Global All Cap and bonds (with small % of emerging, develp and gold) so far I'm 15% up, I've no idea what the future will bring, but think this covers most bases, lived though '2 crashes, shown me that no one is too big to fail, it's all a gamble, so I like to spread my bets.

[michaelswami]

I have an 11YO who we put in the following core index funds: VB, VO, VOO and VXUS in equal proportion. Large cap US isn’t going to outperform forever and it’s a very long term portfolio.

[ericscott]

Most of the QQQ is in VGT. VGT is a lot cheaper to hold with same performance. That said it is part of my 3 ETF portfolio. VEA (non US), VOO (S&P 500), and VGT

[wedgtable]

I completely agree, which is why I'm 100% in VEVE (FTSE Developed World UCITS ETF). Still has like a 70% allocation to the US, so you're still getting a pretty heavy weighting to the US market, but you get a little bit of world diversification too. VEVE and chill. 😎

[PassivePortfolios]

Try Bill Bernstein's "No Brainer Portfolio" - US Large Cap index, Small Cap index, Developed Markets index and Short Term Treasury (or can use short term Treasury ladder).

[lewisscott]

Some would argue that even though the S&P500 is based in the US, they are global companies. Look how much influence the top 10 have in the uk- All of us have an apple device, Microsoft laptop with a Nvidia processor ordered off Amazon etc.

I wonder what the percentage of presence of US based companies is around the world?

And let’s not forget get about those fees! 0.21% for your global index fund? Not exactly 0.07% for VUSA.

[minimad]

I have benefitted so far with the UK stocks rallying but still own a global index fund to cover all bases which includes our American cousins. I have dabbled in a purely emerging markets fund so will see how that goes over the next couple of years.

[adamlakin]

Point well made. The law of averages says the US must be due a period of under performance at some point. Given the valuation difference between the US and elsewhere, I think that under performance is imminent. Consequently, my own portfolio is underweight US.