S&P500 vs Global Index - Don't get it wrong!

The S&P500 has been the dominant index globally for over a decade and is now the most popular investment for most.. But is this the wrong choice?
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Sources
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[@TobyNewbatt]

Here to say I am also an idiot

[@MindfulJai]

Me too 😊

[@FreaksSpeaks]

We know 😂.

[@faenorsjewel5618]

*also puts hand up*

[@chrisbrown6168]

I am also an idiot. If I think I’ll probably get it wrong

[@mrlolmaster1019]

Virgin British finance youtuber: Buy the World Chad American finance youtuber: USA USA USA!!!!!!

[@lordzorax1]

Loving the new editing and big fan of the podcast. Keep it up!

[@mobyrne5]

I was thinking about this very issue lately and came across your video - very helpful, thank you!

[@JoelBigDonnyG]

That final point you made about what is and isn't actually in your control was a really good one. People, myself included, get sucked into that trap too often. Great video as always Damien!

[@Hongk0ngPh00ey]

Great video! I go all on VWRP, every month. The set it and forget it nature works best to distract me from those 'shiny things'

[@decsjr]

What an absolutely fantastic vid. Great to get your mindset and see the reason behind your choices, even if in the moment they may lead a slightly lower number. The logic around the no touch approach.

[@johnjones6890]

Wonderful quality video. Impressive how these improve over time

[@dovy724]

I love how Damien can create such educational content so entertaining! Thank you Damien :)

[@LostAtSe]

I love how you really focused on the psychology and strategy versus your own self and what works for you at the end. Great insight, really similar to myself I have to say. Thanks Damo mate.

[@chobychapman]

I look forward to these videos, the quality of production and the content is always epic! Great job!

[@DamienTalksMoney]

Thank you so much! Glad you enjoy the editing I sometimes watch them before launching and think Damien… what the hell you playing at here. This is a finance video

[@the.blue.raven7777]

Wonderful direction and music

[@weeeeehhhhh]

Fantastic production value and brilliantly concise and wry delivery of good content.

[@smeg3519]

@@DamienTalksMoneyahh mate don’t change, you have the perfect balance of humour to quality seriousness

[@Gez-C]

Great

[@DeanR3]

Thanks damo great helpful video and i am now investing in global all cap and not going to tinker or worry about what etfs to invest in etc, sold all my etfs and now going all im on one fund as same as you its easy to over complicate things, simple and easy 😊

[@AidanSlate]

Cheers Damien! I've been thinking about this recently so was looking forward to your take on it

[@LawrenceAnton]

Would be great to see a video going over all the aspects of VWRL as I’m sure many people will be using or considering this fund. Things like past performance, geographical spread, how often it pays out and how that process works, etc. for people that find the info on Vanguard’s website confusing.

[@suttyotolvajfideszbanda5983]

Yes I would love that tooo... Do you invest into the VWRL?

[@jasonbarker9943]

Nicely said. another informative video

[@FelicisimoMalinao]

Excellent info. Much thanks.

[@pasiojala3227]

Outside of the US, with S&P500 you're also taking exchange rate risk. It can work in your favor or against you.

[@fredatlas4396]

But if you invest in say ftse dev world, msci world or ftse all world index etc you are still getting a large exposure to the US and currency fluctuation risk. Plus the UK hasn't exactly done well since about 2009. Plus the UK hasn't exactly done well since about 2009

[@fredatlas4396]

If you invest in a ftse all world index, ftse dev world or msci world etc you are still getting a large exposure to the US and currency fluctuation risk

[@geoffreyhughes-hubbold5824]

Nice one Damien. I am very similar to you in how I think and its good to see I have already come to the same conclusion as you and stuck with the global index vanguard!

[@ezrolith85]

Fantastic, as always! Always end up pausing a few minutes in to stop and like the video because of how good I can tell the content is going to be.

[@DamienTalksMoney]

You legend thank you

[@miri9600]

Thank you for your honest opinion. I agree with you on 90% in global index for a better sleep and remaining 10% you can enjoy in putting on some individual stocks, gold or crypto.

[@fireben90]

Great informational video. Worth considering.

[@davevanengelen6491]

Wow what a video. Lots of work! Great honest content 😊

[@squareeyes3676]

Cheers mate, good to see you're more than "back on your feet".

[@ba8898]

Great summary as always!

[@niamhb1365]

Loved this video, so helpful! Would appreciate a video covering your thoughts on a SIPP/the pots you have going for your retirement. Thanks for the great content as always

[@vivekdgr8bhardwaj]

Really appreciate the effort, i would definitely say that the quality of your videos actually encouraged me to start investing journey in UK ..Thanks Damien for telling the stuff so calmly yo avoid this panic behaviour in investment strategy

[@warrenb243]

Great to see you looking well Damo. Good content

[@2COLDFN929]

Always great videos! Watching them from someone who failed miserably at Maths at school. Now at 44, you’ve got me engaged about investing. So thanks 👏👏👍

[@lukasg6254]

Great video with Your style of editing! Awesome work Damien! Over 2 years ago I didn't know anything regarding investing. I was thinking investing is for people who have a lot of money. With your help I have started investing and slowly diversyfy my portfolio. Thank you so much for what you do! 👏👍🖖

[@piteshmistry9957]

Another great vid! Thanks Damien!!

[@gaurasrspublishing]

Now that was just brilliant in many different ways. Nice one mate.

[@DamienTalksMoney]

Thank you!

[@garethgazz9332]

It's good to be reminded about this stuff. I don't retain everything I read/learn about as I'm not 'in it' every day, so this was really valuable. Cheers!

[@guyhooper5093]

Really useful video - thanks

[@krisnah7]

Excellent video. Subscribed

[@H.I.T.E.N.]

Your content is fire bro. Take a bow. Smashed it.

[@DamienTalksMoney]

My man! Hope you are well mate

[@theorangepet]

So believably candid, I do appreciate your candor and wisdom. Looking forward to next time, cheers.

[@DamienTalksMoney]

Thank you!

[@DamienTalksMoney]

Thank you!

[@colleen.odegaard]

I'd be interested to see the performance by dividend income for all of these players vs the S&P 500 too. Can it safeguard and grow $500k cash reserve for next 6 years at no risk?

[@kashkat987]

Yes I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Alternatively you can consider financial advisory looking at your budget

[@Shultz4334]

Agreed, After taking charge of my portfolio in early 2017, i stumbled into losses. Upon realizing that a change was necessary, I consulted a fiduciary advisor in 2020 and since then my $1.7m portfolio has gained 28% annually through restructuring and diversification using dividend equities, ETFs, mutual funds, and REITs.

[@Shultz4334]

She goes by ‘’Heather Ann Christensen’’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@JoshuaHill182]

And here we have guys, a conversation between two actual robots. @@sommersalt88

[@sommersalt88]

Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.

[@christoph4794]

Like your channel, subscribed. Very balanced and differentiated analysis!

[@DamienTalksMoney]

Much appreciated! Thank you for taking the time to comment

[@tommyy__]

Great stuff as always man

[@gaycha6589]

Brilliant insights and analysis

[@MatthewMills.]

Very slick looking video!

[@LEWIS1992]

This was really interesting, thank you!

[@DamienTalksMoney]

Glad you enjoyed it!

[@jasperwagen6879]

Editing has taken a step up, well done mate

[@fusemunk]

Great video. Watch out for currency swings....$1.75 to pound some years ago...

[@josephwardley9727]

Glad to see youve recovered and your video quality is still S tier 👌 Im gona try and create a gobal portfolio with lower fees. 60% SPXP fee .05% S&P500 4.28% ISF fee .07% FTSE 100 0.72% VMID fee .11% FTSE 250 10% XUEK fee .09% EURO 7.5% VJPN fee .15% Japan 7.5% VAPX fee .15% Asia 10% HMEF fee .15% Emerging Kinda follows VWRL though its a little more work, the fees are quite a bit less. Not gona lie though invested into single stocks during the bull run 😅 still super heavy into UK right now. Looking to trim down if things get better.

[@AlisonWonderland999]

So so grateful for this one, Damo! These are the questions I really needed answers to, but I was too stupid to actually formulate the question 😁 It was also really reassuring from 09:50 onwards to feel like I'm not the only person in the world to do daft things. THANK YOU 🥰

[@DamienTalksMoney]

My whole life is one daft decision to the next just some of them pay off

[@MehediOfficial]

Really good video and it's on par with what I was thinking recently too... I've always bought MSCI Global Islamic and their USA counterpart but I suspect things are about to shift but realising over 60% of Global is still USA is good to know so thank you once again Damien.

[@point_and_aim1437]

This guys the real deal, love the approach. Got a subscriber!

[@DamienTalksMoney]

Thank you!

[@kevinu.k.7042]

Excellent - Thanks. Time for me to make a move on this.

[@turner1622]

Great production Damo. Guilty also 😊

[@coderider3022]

Well said at the end, applies to everyone. Bonds : no one appears to talk about these and makeup of their portfolio but appreciate the common theme is 20yr+ strategy.

[@markdillon5494]

I use the HSBC All World at 0.12 fee in my pension. I use the Invesco FTSE All World in my ISA at 0.15 fee. Its a no brainer.

[@imbarmstrong]

Another quality video as always

[@ProWhitaker]

Thanks for the video

[@Arsenal-81]

Good to see you back 🫡

[@personaltrainersacademy]

Great info! Thank you

[@DamienTalksMoney]

Glad it was helpful!

[@Kazi2812]

My pension and SIPP follow VWRL. Kept them simple. While it is more USA than not, the fund can pivot should it need to. My ISA is a different story, 80% VHYL and I DCA in to FTSE100 and S&P. It's working for me.

[@chillipepper83]

I never comment on financial type videos… great job 👍

[@rlove21]

Another excellent and thoughtful video. Good sound advice (OK not 'advice' - but insight 👍😉😀) As an older investor, close to retirement, I've still got a good few years to keep invested and I hope sustain and grow my funds, it's good to have some diversity, and loved your comments about keeping the monkey brain busy with a small active % of the porffolio, while the bulk is in the index (be it All world or S&P)

[@michaelsnow2839]

Incredible video!

[@philpogson9883]

Lars Kroijer from your country preaches the same thing. Very interesting. Hi from Australia

[@JohnSmith-ch9lp]

Great video Damien. Just what I was after! 👌

[@Danshortt]

Great video. You should do a video on blended vs equity funds! :)

[@sozilla]

Great video as usual

[@Amyloveshotels]

Great content !

[@DamienTalksMoney]

Thank you!

[@alacris110]

Great video!

[@faithfullytuned]

Damn ..that last point can not be underestimated. By pulling the focus to what you do have control over financially it builds a habit far more worthy of our time than checking graphs.

[@wezzza]

Excellent video as always mate. Interesting to see the difference over 30 years between the fees. I'd be interested to see a comparison with St James Place seen as they're all over the news atm 😂

[@maartenvanwesten471]

This was a video I didn’t know I needed. Been thinking about my portfolio being heavily dependent on US stocks, but didn’t feel there was a worthy solution till this vid. Thanks!

[@Amit_l92]

I’m all in the FTSE Global all cap. Great video!

[@clivejefferies]

Me too

[@ys9484]

So am I. Have we made the right choice?

[@rb36789]

Yeah good choice if you can accept losing some performance

[@dmytrom.3010]

That was a cool video. A lot of people in banking understand less than 10 % of what you explain here

[@Domi6556]

This channel is a gem.

[@dynestis2875]

I went for VUSA and VWRL. Otherwise I'm also building up my portfolio of TSLA shares, and I have a small account for daytrading. I mainly do momentum trading with that.

[@dharmensoneji3360]

Good logical thought process.

[@DamienTalksMoney]

Thank you

[@johnstableford2553]

I've only been investing for a couple of years and I've seen on many KZbin channels the advice to diversify by going 50/50 S&P500 and Global, but, as you point out, by doing this the portfolio is heavily weighted towards US stocks and the cost of the Global fund is quite high (by Vanguard's standards). What I have done is to invest 50% in the S&P500 but then invested the rest in funds which together make up the rest of the world, Developed Europe ex UK, FTSE 100, Emerging Markets and Developed Asia/Pacific. This keeps the US stocks down to 50% and also reduces the charges. Like I said, I'm a Newbie so if I'm missing something please let me know. Great channel by the way.

[@TomsPersonalFinance]

I had a very similar portfolio up until recently, with 5 ETFs covering S&P 500, Developed Europe ex UK, FTSE 100, FTSE Japan, and emerging markets. I really liked that way of doing it and it is nice being able to clearly see which regions are doing well at any given time! Now I have decided to just do the same with 2 funds. A developed markets index ETF and an emerging markets index ETF. The first 4 ETFs I mentioned above are all covered by a developed markets index, whilst still keeping emerging markets separate allows me to control the proportion I want between developed and emerging. Also, there are some very low fee developed markets indexes out there when you shop around!

[@NoNonsenseJohnson]

Correct 50/50 creates a massive overweight in US stocks. The only issue I see with your strategy is you will need to often rebalance your weighting to ensure there’s not any over exposure etc. effectively timing the market which historically is not good. Personally a set and forget is ideal for most small investors and to focus their time on improving skill sets to earn more money to invest more capital. Instead of wasting time worrying about a few basis points. Just to be clear I understand your reasoning and strategy 👊🏽

[@jakkuwolfinsomnia8058]

I didn’t even know anything about the S&P500 or Vanguard or Index Funds until I saw your channel. I’ve been consistently investing every month in the S&P500 and a lifestrategy fund. I can’t believe amidst all my investments the S&P500 ALWAYS outperforms everyone else. The others bring a profit, but S&P500 brings the biggest profits. I still keep my hand in the globe because I think as economies grow they tend to make foreign partnerships and this boosts other economies. That’s my basic theory. I think it’s a more reliable idea of a pension than the state pension because the maths is real and the returns are potentially enormous Plus, just because USA has been great who’s to say that won’t change? Anything can happen, as we have seen many changes happen across the world

[@beltrangarrote1982]

I’m all in for MSCI world index fund. I chose Fidelity for the low fees.

[@mrclark10001]

Excellent vid again as usual! This really highlights to me the long term. For now im pushing hard into the US based tech lead (S&P 500 plus additional buy into individual tech stocks - NVDA, MSFT, META etc) but i think for long term (which i am anyway) maybe more emerging markets would be useful if this world order might shift in next 20 - 25 years (time i have left to invest). India is somewhere i see really pushing up at a considerable rate, as is China, but then theres the curveball of climate change which may impact these locations considerably. Lots to consider as always!

[@FlyingFun.]

Being closer to retirement I decide to do 50 50 on sp500 and vwrl, the reason being I will be taking money out so will simply take out of the one that's doing the best. I get to benefit from the lower fees on the sp500 on half the amount. Vanguard platform fee should be reduced vastly because I can get the same funds through hargreeves landsdown but with a fixed fee of £45 per year no matter how much I have in there and the vanguard fee is limited to £375 so that is a big saving each year

[@user-yl9cl2kj3r]

I think Vanguard is being a bit naughty with the management fee for VWRL/VWRP. The developed world ETF VEVE/VHVG has a fee of 0.12%. Their emerging market ETF VFEG/VFEM has a fee of 0.22%. VWRL/VWRP is approximately 90% VEVE/VHVG & 10% VFEG/VFEM so the fee should be around 0.13% really, not the 0.22% they charge.

[@regtalkswealth]

I'm going all in on my indexes 🎉

[@pynh96]

Fantastic video

[@pataleno]

In my ISA I do just Life-strategy 100. My pension is split between VWRL and VUSA. 50/50.

[@meritmortgages]

Great content and delivery, thank you 🙌

[@NoName-ql1wk]

Solid advice as usual. I do Life Strategy 100% and s&p ETFs. Seems to be doing the job. Pay it and forget it and if I'm lucky enough to be alive in 30 years I'll spank it all like a 90s stockbroker.

[@davidlguerr]

What's the TER for a Lifestrategy fund?

[@tibisoft]

Thx, I was lookimg for such input to re-define the phylosophy of my portfolio, as I have mixed sp500, all-world and some others too :)

[@davidlguerr]

If you mix all-world with S&P 500 you are betting mostly on the same equity twice, as most of the all-world index is US.

[@GeorgeAusters]

I've just been investing in the S&P500 for the past 18 months now

[@SiriusB88]

Great video! I am new at this, and in my current location I have the fortune of being able to invest in VT with an expense ratio of 0.07. One question: do you prefer to invest only in equities or do you also hold a certain amount of bonds/fixed income? I am attracted to the simplicity of putting money into just one fund until I retire, but I get the chills when I think about the possibility of a 1930s 2.0. Love your videos, man. You have a new subscriber 😉

[@IainGeddes]

VWRL for the win - I've been building this one up for MONTHS because I too am an idiot. The hands off approach, being a rational optimist and expecting the world to grow makes this ETF an obvious choice! 📈

[@littletommyl]

Thank you for another great video, Ray Dalio changing of the world order was a shocking analysis that worth adressing. However, the bit that still got me stuck is if the order does change holding any vanguard (an american company) holding world or s&p 500 would be losing value without our knowning because a system outside of the bretton woods frame work and the system that has held the us on top since then (swift, imf, world bank, visa, mastercard, the fed). It arguable that since the weaponisation of the dollar against russian and BRICS nation proposal to start a unified currcency this process has started

[@Bilobatron]

Do both.. add some emerging markets and fixed income.

[@mattinterweb]

Agree with the global approach. I think in the US over the next decade is likely to be a stock pickers/sector pickers market. AI, infrastructure plays and stocks that can benefit from higher inflation for longer will still do well as well as will some healthcare plays. My only issue is the Global ETF's available still consist of roughly 65% US companies, and most of the other allocations are in UK, Europe and Japan, countries that are likely to see slowing growth to (Japan might outperform). So your Global fund consists almost exclusively of economies with slowing growth. Unless I've missed a good Global ETF that has a good share of South Korea, Brazil, India, Mexico etc? 50% US, 30% established economies, 20% politically stable Emerging markets would be ideal for me.

[@hypnoticmonkee]

Great vid again. I'm constantly tinkering to the point I'm getting on my own nerves. The VUSA is overvalued at moment and keeping some cash back for when or if it crashes

[@hypnoticmonkee]

@@Damien-TM 🤣

[@conrad_t]

Thank you for this, it really is nice to see the perspective of an investor who is not based in the US. As a US investor I often feel a bit crazy buying our equivalent of the total world index VT. So many people around me fall victim to home country bias and see no point in buying the world market when the US has done so well. It's not that I think the US won't do well going forward.... I just don't know. What I know is the world SHOULD do well.... My IRA and workplace 401k are split between US/International to match market cap weights... it's just nice to see there are others out there in other countries who share the same idea as me.

[@DamienTalksMoney]

Home bias is a thing here in the UK also even with our market not doing well! In the same way the "America is all i need" approach is heavily touted by many here. I think you have put it really well. We don't know if America will do well but the world should. If it doesn't well we are screwed anyway haha

[@henriquelima916]

@@DamienTalksMoney "We don't know if America will do well but the world should. If it doesn't well we are screwed anyway" that's so clarifying lol

[@marg8315]

Home country bias is not all that bad. There’s research showing that people in developed countries achieve best risk adjusted return when they invest 35% in home country. Think about Canada’s stock market represents only 3% of global value, that’s 30% higher. For Americans where the U.S. stock market is 60% of global market, 30% on top of 60% is 90%. And so all in S&P really isn’t bad investment if you are American.

[@peternee9641]

Excellent vid....Again! 😂❤

[@keepingupwiththejonesy]

My daughters JISA and my new LISA are in Vanguard FTSE Global and i plan on merging my wifes into it too. All my stuff is global but i wanted some interest so its split between S&P, FTSE, Euro, Pacific, Japan and bonds. 6 funds that i think have decent diversity. Would be interesting to hear what crypto you have and whether its 'conservative' and if T has a hand in it!

[@rgrtnyjjc]

Good to see you’re doing well Damian. Interesting topic. Looking at global index funds outside of Vanguard the HSBC FTSE All World looks good with a low fee of 0.13%.

[@ScipioAfricanus809]

Cheapest global fund in the UK

[@tazzer6959]

PRWU fee is 0.05%.

[@rgrtnyjjc]

@@ScipioAfricanus809 indeed, the next cheapest being the Invesco FTSE All-World with a fee of 0.15%

[@ScipioAfricanus809]

@@tazzer6959 thanks, wasn't aware of that one.

[@rgrtnyjjc]

@@tazzer6959 Interesting, I’ll have to look into that one. Edit: ok so the difference is that PRWU is developed world only while the HSBC is a true All-World fund (developed world & emerging markets)

[@howardmaharaj]

Morning Damien I hope you're well and thanks for your advise. I would like your thoughts on my pension plz

[@rafterselectricallimited1645]

Hi Damien, do you ever do a live Q&A? Thanks James

[@andymcall1986]

I've started a small (sub £20k) portfolio, which is 60% S&P, 40% Lifestrategy 100. Thinking about starting a st&sh LISA as a third element, and going with a global fund for more diversity... Interested if anyone has something similar set up? Great content yet again Damo, bang on the money. Thank you.

[@chay18]

Cracking video mate and a discussion that bounces around in my head weekly, if not daily, let’s not lie 😅 Thanks for some good insight and analytics around both strategies/funds. As you’ve stated, I think either approach will yield you a great return providing we stay the course for the long term and buy in at a steady constant rate. I’m on the other side of the fence, majority of my stock portfolio is in the S&P (VUSA) but I see both sides have the ups and downs! Keep banging out the great content, podcasts included! Have a great day bud 👍🏻