S&P 500 Vs FTSE 100: Which Is Best?

While the US S&P 500 gets all the attention the UK’s FTSE 100, now celebrating its 40th anniversary, is often overlooked. In this video, we compare the two indices to see the relative merits and drawbacks of both.

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[equestrianadvice]

As always very informative. The question wasn’t as easy to answer and the discussion provides food for thought.

[Aggnog]

Can you make an analysis of the FTSE All World as well? Particularly interested in the significance of emerging markets and how the index would rebalance if the US market falls or if india/china end up surging upwards in the future.

In your video on the best ETF a few months ago, you chose the developed world vanguard ETF because of the lower cost, but I've seen arguments that due to the almost 0 tracking difference on this ETF (VWCE), the cost is actually lower than the reported 0.22%. So then the question is if emerging markets diversification has a positive or negative effect on risk and returns.

[Richard-kful]

Another great video. Thanks for your work. I’d like to see a follow-up video which compares these index with a Global Index and a S&P equal weighted index. Gut feel is An Equal weighted S&P 500 seems a good alternative at the moment.

[simplydividends]

The US is expensive for a reason and the UK is cheap for a reason. I will remain heavy in US as when it comes to markets and the economy, they lead the way and have the best companies going into the future world. I still have some UK, but mostly mid to small cap since they have sold off the most and are generally a bit more growth orientated.

[valeriejeanmathis]

yeah that's a good path, focus on a good ETF, relax back and watch it compound within the years. In good time you'll see returns.

[jondavies]

Brilliant as ever in terms of clarity and insight. Thank you Ramin!

[edc]

Love everyone thinking the past 10 years is an indicator of the next 10 years. Good luck with that.

[markuss.]

Thank you - excellent analysis (as usual 😊)

[richarddraperdrums]

Excellent video as always, the most credible financial youtuber out there!

Your messages on the UK appear to be very mixed over the years, sometimes very critical and other times like this more optimistic. Does this represent your personal journey of mixed feelings? Or sitting on the fence/ arguing both sides?

[fullstack]

Excellent information, very educational.

[plastelina_ytb]

Thanks for the breakdown of the different Indexes at the beginning of the video. I always that I knew what the distinctions meant, but it turns out that I did not 😐

[brightbluesmurf]

Great video Ramin, you surprised me at the end but facts are facts, UK is undervalued and as a contrarian investor l remain overweight.

[thisisrandom]

Fascinating as always, thank you. Would be interested in your analysis on the opportunity of investing in the FTSE250 now, which seems to be at a big discount and much further from its all-time high than the FTSE100.

[JohnMcLaughlinPlus]

Impressed that Capitalization was spelled correctly for each index! (z in the US and s in the UK)

[koneism]

Thank you Ramin for your insight and video. Whilst i have holdings in the S&P 500, It's actually my UK holdings (vct) that have out performed in my portfolio. These are, however, unlisted companies & more risky.

[zuzanadrabikovavozarova]

Ramin, thank you for another great video. Since passive index fund are currently very popular among retail investors, what are your thoughts on what might happen if majority of investing in the world would become passive? Isn’t it that active trading is basically crucial for the effective market prices and afterall for good returns from passive investing? Thanks!

[blhlow]

My work pension with L&G is 60 UK:40 Global - that's the default option. That's about 6x overweight UK compared to the world index! I must do something about it - probably transfer to my SIPP and take back control

[john-davidfisher]

I would like to hear about any frontier indexes. I listened to your podcast and it reminded me that, I have been thinking about a small amount of frontier for a while, in a fun portfolio 🎉

[tonygiles]

I remember the FT30, which I believe is no longer published. Don't think it was a weighted index.

[Nayr]

One thing that's important to note is that in the US dividends are taxed at about double what capital gains are taxed at (0%-20%). So you lose a lot of money with dividends.