The S&P 500 vs. The World - What's the Best Index?

This video compares the S&P 500 to a global index fund and I discuss the pros and cons that investors need to consider when choosing which index fund to invest in.

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[SantiagoHidalgo-owwb]

I love this video, you are funny, explain things really well, and most importantly, you give me a really good vibe, keep on like that

[angelyordanov]

Awesome take on an important dilemma for new investors like me! Keep up the great work 😊

[lilytea]

0:07: 📊 The video compares investing in the S&P 500 index with investing in a global index fund.
3:32: 📈 The video discusses the future of the stock market and the importance of diversification in the S&P 500 Index Fund.
6:18: 📈 International stocks have historically outperformed US stocks in certain time periods, highlighting the potential for growth in a global market.
8:56: 💰 Diversify your investments and consider a global index fund to mitigate the effects of exchange rates and focus on long-term investing.
11:53: 💰 Invest regularly for the long term and choose a strategy that aligns with your risk tolerance.
Recap by Tammy AI

[drewsykes]

The large and mid cap world fund I use is two thirds US stocks anyway and just gives me an extra feeling of reassurance not being all in on one market, whilst I don’t have the interest or skill set to invest in more than one fund having to worry about actively rebalancing etc. in my case it needs to be as passive as possible or I wouldn’t do it.

[Duncan]

I don't think you can go wrong with either approach - if you prefer less volatility and don't mind the lower return then a global ETF might be your best option. I think the US will continue to be an economic powerhouse in coming decades so I'm happy to concentrate on 100% US equites for the time being. As you mentioned, the only thing to consider (apart from fees) is whether you're hedged or unhedged which generally cancel each other out over the long term anyway!

[TheCompoundingInvestor]

Great video Toby. Outside the ISA it’s the S&P for me as it has a lower yield than VWRL. Inside the ISA I prefer VHYL with its bigger yield. Definitely food for thought. Keep up the great work

[anthonyjanes]

Thanks Toby, I have just set up a pension for my son, Vanguard S&P 500 ETF, he's got 37 years to wait so hopefully we are on the right horse.

[Lotuz]

As a new investor, I have no idea what's best right now and will learn what's best for my portfolio, over time. Right now I have VG Global AND S&P500 on a set and forget mode. The best thing about Vanguard is their platform is not enticing to log in. I have a few more years left in me yet so let's see what the next 12 month looks like!

[brownfox]

Another very interesting and informative video, cheers Toby.

[RayRay]

Both are great indexes to own! I do like VWRP and VUAG and I believe if you stay the course long term, you be fine.

[carlenecayhill]

Great video Toby as usual, I'm far too indecisive and don't have a crystal ball so try and get equitable exposure to both the S&P 500 and All World indexes

[secretagentrandybeans]

I have:
Pension - 100% global
ISA - 80% global
20% gold

I feel with most globals being 50-60% USA its basically the S&P500 with some added diversity

[abdulrahman]

Great video toby. Ive just moved my pension into vanguard. Even though the snp500 makes 70% of it, ive allocated the other 30% amongst the ftse 100 (because of dividends and home bias), VHYL (did i mention i like dividend😅😅😅) and vwrl.

[richard]

Great video as usual. Are there any upper financial limits that you are constrained (allowed to invest) by with any of the invest engines you show in your list above?

[chrysanthosrialas]

Having both is the best along with bonds and any other kind of security, diversifying assets is fantastic

[gileschalk]

I buy both, 40% global, 40% S&P, 10% emerging markets 10% global small cap.

[VideoAssociates]

Im 50% in BlackRock SP500. I see it this way that these huge US companies have their business branches globally anyway so they are essentially international in every sense

[suga]

Mate, good video as always..!! I stick with my stocks and shares ISA SIP investment rather lazy index investing..!!😁😁

[julianfp]

A great video. One interesting follow up might be to go one step further down the global diversification explorations and do a comparison video on FTSE All-World vs FTSE Global All-Cap (where the all-cap index adds some small company exposure). I think that in the past global all-cap tracking wasn't accessible via an ETF but I noticed fairly recently that Vanguard now have 2 ETFs tracking the FTSE Global All-Cap index, EPIC symbols V3AM for the distributing fund and V3AB for the accumulation fund. Both are domiciled in Ireland with an OCF/TER of 0.24% which isn't massively more than the 0.22% OCF/TER of Vanguard's FTSE All-World tracker. I'd be interested in your thoughts on those.

[kelle_li]

Heavy on the S&P 500 for me, but along with it I DCA into the likes of FTSE 100 and 250, Developed Europe, Emerging Markets and US Small cap