Should We Be Worried About Global Index Funds?

I have seen a rise in articles and news publications claiming that global funds are under threat and that investors could be at risk. Today, let's look at whether this has any merit.

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00:00 - Growing concern
01:13 - How we got here
03:20 - They will fail
05:10 - Past dominance
09:00 - Equal weight
10:35 - The rest of the world
11:50 - Tech rising

This video does not represent financial advice, and I am not a financial advisor. When investing, your capital is at risk. Investments can rise and fall and you may get back less than you invested. Past performance is no guarantee of future results. Free shares can be fractional for more information see these terms.

[DamienTalksMoney]

For more info on what I discuss at the end please email

[laz]

The "high concentration" in the index doesn't really increase risk even if all the top companies were in the same sector. You hold the index long term, but the index doesn't hold companies long term. If some change happens in the future that means a lot of these big companies become irrelevant, then the index will start to sell them off and it will start buying the new companies that people will use instead.

[chrisyates]

You are Amazing! For 50 years I was a teacher. For 40 of them at the Institute of Education, University of London. I worked in international distance learning. You and Ramin and no doubt some other genuine FinTech YouTubers are changing this world for the better as 21st century educators. You are the pioneer teachers of this new wonderful, dynamic and dangerous century. There is one bit of knowledge that counts for more than all the others - to find out and learn and master something for oneself. But we all need people to offer a helping hand a mentor, a coach or guide. We all need to win in some way - Tommy needed Jimmy and vice versa - c.f. the climbing analogy. Keep going, your vision is a much needed one. How you get there will be a wild ride. But it will always be interesting. I wish I had another 50 years to help change this world some more.

[NightshadeGengar]

I'm almost 29 and I've just started to learn about investing. Your videos have been an amazing help! Thank you Damien!

[aa-lzoc]

These big companies will fail… for something else. The indexes are self regulating, the composition changes over time but they still capture the growth of any future winners. Short term we may see a big correction but in the long run the market will be larger. Stress less, invest more. Quoting Dory from Nemo: “Just keep swimming, just keep swimming”.

[__Rum-Ham__]

Nice one Damo, I was afraid you were going to give me a genuinely compelling reason to stop investing in global index ETFs. Thankfully not 😂

[TheRealMerl]

When I was watching this absolute masterpiece I thought I'd have questions, but now I have only one: Why on earth do you have so many remotes Damo?!

[harrysahota]

Thank you. I've been thinking about this exact issue for a while now, and I'm glad you've explained it so eloquently!

[chrissmith]

Just as a note Amazon isn’t really a retail company

It’s the dominant cloud service provider, providing the structural support for vast sections of the modern internet. Who also has a big retailer attached.

AWS has been responsible for a disproportionately high percentage of Amazon operating profit.

[AshJun]

Production values on these videos have gone up quite a few notches. Great content and great presentation. 👌

[WanderlusttheWorld]

I predict with inaccuracy, the next biggest sector will be healthcare, medical devices, medical tech, biotech, pharma, health big data, health AI.

[bjeorfffurghinson]

Noticed an uptick in editing lately in your vids. Enjoying it mate! PS love the ABBA reference

[kingstun]

Dont usually 'like' videos, but the creative advert at the end was the cherry on the cake for me. Great video!

[thlady]

"I need to get out more" crack after throwing up a "fantastic chart?" Genius. I feel you, my friend.

[stuartthursfield]

Doesn’t bad performing stocks get removed from index funds and replaced with more favourable stocks?

[andreask]

Would love to see you do a video about how index fund bubble pop looks like and how would it play out.

[DC-yjnj]

Thank you for your rational review amongst all this noise.
Feels like everyone has an agenda and sometimes you need someone to cut through the noise to provide balance.
Very well thought out and delivered.

[sambrook]

Brilliant! You are bang on, there is no tech because everything is tech!

[anikaka]

Where do you find you graphs and charts or do you make them yourself?

[Life_Literacy]

Cracking video fella. A really great to see how your business is growing… really nice touch 👍🏻