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What was the Main reason why you switched from vanguard to invest engine?

At the end of the day, may the best man win. The better competitive, successful and profitable your company is, the higher up the index it climbs where the capital will be allocated to you

Inflation and stocks have a almost built in protection. As the value of dollar decreases the amount collected goes up. Sense most stocks are treated as company value (nav) that value goes up. So does the payout. There are better avenues for protection but there is built in protection

Good points Toby

Nice T-shirt mate and great explanation 😊

BUY AND HOLD FOR ME BABY! BUY AND HOLD

100% vanguard sp500 here buddy. Too smart to know i cant and dont want to pick out stocks and that even the best of fund managers cant do it and i know i aint peter lynch

It's always better "time in the Market, than timing the market" Great video Toby, happy to see someone so knowledgeable based in the UK. Keep doing this great stuff.

good video. I invest around 90-95% of my portfolio in a cheap global tracker, but have the remainder in fun funds, like scottish mortgage. Greatly reduces my likelihood of messing with my main investment, and keeps me in the game :)

BANK

Great video - made a lot of sense to me. Thanks :)

It's impossible to have 100% index funds because there will always be dividend bros. Those guys ain't going index ever. They want their free money.

I'm 100% index funds. Can't be bothered with picking stocks. Happy to just set and forget :)

Brilliant video Toby! Your editing is so good! I’ve got a lot to learn 😂 wishing you all the continued success with your channel 👍

Great video, and well researched. However, I think problems would arise if/when a handful of large active investors were able to manipulate the markets.

Is it worth getting into this via my bank? I’m with Lloyds, please advice if you can man thank you

"picking the right stocks are like finding a needle in a haystack whereas buying an index fund is like buying the haystack" Most of my capital is in the S&P 500 but I do have a couple other investments they are PFE and LGEN, I also have a little bit of money in a gold ETC aswell

There are lots of index fund holders that are selling, ones who are rebalancing, ones that de-risking because of retirement, ones that want to diversify, and those that just want to sell to live on the proceeds ... So lots of sellers and buyers. I don't think there is going to be any issues with just sticking to index funds. Just my opinion...

Lets just shift all our billions to emerging, and screw the US and markets 😂

Great video, I like how transparent we you have been in the entire video, I was able to make a decision for my child now.

Very simple explanation of a complex sounding topic

Fot that to happen completely you would need a " planned stock market " with regulations that only funds could deal in shares. All funds and ETF's would have to become active at some level, if all the buyers and sellers are funds that are now the sole market participants they will decide the value of companies. The largest funds at least would have to value companies and decide what to but at what price, they may well get it even more wrong than the current market. Smaller funds could follow the herd. The alternative is the index publishing companies would become the regulated valuation experts as they could also be the ones to value the companies in their indesxes and the funds could stay index funds... either way something would break in a big and bad way.

HSBC FTSE all world OR Invesco FTSE all world UCITS?

But surely the fact that the share price of the top 7 (say) companies in S&P 500 continue to grow is because anyone who invests in that index fund is disproportionately investing in those top 7. So as more people invest in index ETFs, the top ones will always grow far faster than the others. Consider the case where an Index fund has one very big company (say 80% value) and all the rest make up the remaining 20% of the ETF - by investing in that ETF, most of your money goes into that one big company. Every company has corrections, etc. but that isn't the point. The point is that investing in index funds will always tend to force the share price of the top companies in those funds to do even better. In a way, actively managed funds are competing against this tide unless they also invest in the top 7. Or have I got this wrong?

How does an index fund get rebalanced? Is it automatic based on the market cap of each company? e.g. consider the S&P 500. Or is there human adjustment of the percentages of each company in the index. (but that suggests a fund manager!) Contrast with XDWE an equal weight S&P 500 index

Fundamental issue with day trading is probabilities, calculations, candles doesn't (always) work because if you lose money by the end of the day it is gone forever and it is really risky to enter into something that only works by chance. But it is not evil or bad to ignore it completely either. Suppose you know that givernament had taken a decision that could positively impact banks you could definitely bet on banks on that day. I think nothing wrong in taking advantage of the situation but as a career it will definitely not work. Having said that short term trades worked for me (1-3 months) very well and the only painful thing is the huge taxes I have to pay on the profits earned.

Very interesting, great video Toby.

I've been saying for years now that people can't wrap their minds around how high Bitcoin can go. Everyone is preaching caution right now which is interesting. The reality is that the demand is just getting started. Only a fraction of the asset managers have been buying. Plus Hong Kong has finally approved their ETF. Now there will be retail. Things are get really serious. Those of us who were still buying the week after the FTX crash are about to be rewarded. Central to this transformative shift is Linda Wilburn, whose profound comprehension of both cryptocurrency and traditional trading has played a crucial role. her comprehensive investment strategy and dedication to staying informed about market trends position she as an invaluable ally in navigating this new era of cryptocurrency investment...managed to grow a nest egg of around 3.4BTC to a decent 16B TC in the space of a few months..

Are ETFs protected by stocks & ISAs?

Really dumb question here but if the value of a company is just the supply and demand on their shares then why does how much money the company is actually making have anything to do with share price? In theory couldn't you have useless company that for some reason everyone thinks it would be funny to buy shares in and suddenly Jimmy's poop flavoured cup cakes is worth 2 billion dollars? What's the relationship between the money a company is actually making and the share price?

At the extreme, if the majority of people will be buying funds without evaluating them. That would open up huge valuation mistakes, which would make it possible for active managers to make a decent living again.

Whilst I do own some passive funds, the majority of my investments are actively managed. Ultimately passive investors are reliant on active investors to ensure capital is properly allocated and thus valuations reflect company performance. Personally I choose to partake in that process. In doing so I hope to outperform, but am willing to accept the risk of under performance too (statistics don't lie!).

How can "more people want to buy than sell" or "more people want to sell than buy" given for each trade there needs to be a buyer and a seller.

Good video as usual, thought provoking stuff 👌🏻👍🏻😄

❤❤❤Another fabulous video ❤❤🎉

I am watching your videos for some times and I have some observations, you have problems with Dividend stock, now ETF is a problem... Growth stocks you never promote... so should we sell everything and buy gold/Silver? I would like to get a reply from on this please.. thanks

I'm 25% ETF and 75% dabbling

But if 50% of the funds are index funds. Say i share loses 10% couldn't that the mean that 10% if all shares owned by index funds then have to sell. Then value goes down etc causes a big slide. Same for increases.

Thoughts on semiconductor etf?

My brother loves the thrill of the individual stocks market. I’ve tried to get him to see the value of ETFs with almost religious fervour but he’s just not interested

As long as there are active managers with inflated ego that think they've found the next Apple and Tesla that will lever happen.

What about people who take a punt with different ETFs? So a bit of vusa, vwrl and then perhaps a ftse 100 or 250 as well? When do they go from being a passive investor to an active investor

That is great food for thought actually. I think as more money flow into passive investing. The market will become less efficient. To which point that the odds of success of active investing might start to improve and the statistics for active also improves. Then more people might flow back into active investing as people see statistics improving and wants to beat the market and the market becomes efficient again and the whole cycle begins again. There should should be an equilibrium point of the ratio between active and passive

Good show by the way

I left SJP after 12 years of investing with them. I put all my money into a Vanguard portfolio which somewhat mirrored the SJP investments and my profits soared. I have no doubt that it was the right decision.

I wonder how many active managers saw Nvidea’s potential and sunk a significant proportion of their managed funds into it in 2018..

Great video 😊