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The 3.5 BEST Index Funds That Will Make You RICH! - YouTube
Channel: Mark Tilbury
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hi guys it's mark so have you ever
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wished there was an easy way to become
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rich that anyone could do with no prior
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experience well guess what there is and
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i've made millions doing it myself but
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before you click off thinking this is
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some kind of scam i'm not pumping the
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latest crypto coin or trying to sell you
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an online course that costs 997 dollars
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i'm instead referring to index funds
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index fund investing is super easy
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incredibly effective and in most cases
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actually ends up beating the profits of
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professional investors a study published
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in 2020 showed over a 15-year period
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nearly 90 percent of actively managed
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investment funds failed to beat the
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market simply put experts who spend
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their full-time job trying to beat the
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market are unable to beat most investors
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that use the index fund strategy so
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today let's discuss what an index fund
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actually is which ones are best for you
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and how you can use them to grow your
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wealth right after you smash that like
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button for the ltube eugerism i'm going
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to be honest i almost didn't make this
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video the world has changed over the
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last couple of years and now most people
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only seem interested in the stocks and
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crypto going to the moon i get it it's
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exciting to see your money multiplied
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quickly but the harsh truth is lots of
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people are investing more than they can
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afford to lose in risky investments this
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means that when a crash happens and
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believe me it always does many people
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will be left with nothing i've seen this
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happen time and time again and the
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people that make it through the storm
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are usually the ones that also invest
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for the long term of course i've taken
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my fair share of risks over the years
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like investing in a dot-com bubble and
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now by investing in the metaverse
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however the one thing i've kept
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consistent is my index fund investing no
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matter if the market is up or down every
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week i prioritize those investments this
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has allowed me to grow my wealth over
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the long term while a lot of my
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previously richer friends have lost
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everything so i like to think of index
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funds as my secret weapon as they've
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meant that i've always had a backup for
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when the worst happens if you only ever
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watch one of my videos all the way
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through to the end then it definitely
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should be this one so it's been a while
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since i've talked about index funds so
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let's break down what they actually are
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think of these skittles as lots of
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different individual companies this one
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is tesla this one is apple and this one
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is coca-cola now as an investor you
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could cherry pick the ones that you like
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the most this is called investing in
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individual stocks however these
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companies go bankrupt or crash in value
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you're in trouble mind you i do like the
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new sour skittles they're very tasty the
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great thing about index funds is with
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one simple purchase you can own all the
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skittles in the bowl without having to
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deal with all the hassle of creating
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your own hand selected portfolio or have
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some expensive manager do it for you
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this is because they're passively
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managed which means they are extremely
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cost effective i have a large chunk of
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my wealth in index funds and i dabble
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with individual stocks using my fund
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money this is because i occasionally
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enjoy the excitement of seeing an
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investment skyrocket 40 in a day which
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let me tell you it's never gonna happen
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with an index fund but that's not a bad
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thing as it's all about building
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long-term wealth and not short-term wins
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the truth is that if a stock or crypto
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can give you these kinds of returns then
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it could also swing back the other way
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the great thing about index funds is if
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one company from within the bowl is
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having a bad time
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like this one boom you've still got all
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the other companies holding it up an
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index fund aims to track something
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called an index which is a lot like a
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sports leaderboard they can rank company
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size location business type and even
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currencies though because there are so
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many choices let's pretend we're in a
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supermarket and i'll walk you through my
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3.5 favorite baskets of stocks to invest
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in the reason i've added a 0.5 is
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because there's a new kid on the block
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remember i'm a businessman and not a
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financial advisor these are just
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investments i believe in and none of
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this should be taken as financial advice
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i'm just aiming to make you aware of
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these investments so please do your own
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research before investing basket number
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one is of course the s p 500 index this
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is the big daddy of index funds and
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you've probably heard people talking
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about it before i've certainly mentioned
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it hundreds of times but there's a good
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reason for this as it is such a great
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investment and it's done very well for
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me over the years on average the s p 500
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has returned investors eight to ten
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percent per year which isn't anything
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crazy compared to the latest crazies
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like shiba inu but it is pretty
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consistent and much less volatile that
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sounds great but what's inside the
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basket well the s p 500 is the top 500
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american companies well actually it's
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505 stocks to be exact in order to be
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included in the s p 500 a company must
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meet certain requirements including
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achieving a specific market cap having
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the majority of its shares in public
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hands and being a public company for at
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least a year so if you buy one share of
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the s p 500 you will actually own a
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small piece of amazon tesla apple paypal
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and so much more the ultimate flex is
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telling your friends you own all of
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these companies one of the benefits of
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the s p 500 is that it's widely spread
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across many great companies in the usa
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to be honest they are more like
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worldwide companies now since the
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creation of the internet has blurred the
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lines between borders and made the world
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much much more interconnected the
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historical return of eight to ten
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percent has allowed me to generate a
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fortune over the years due to the power
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of compound interest however it's worth
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pointing out that the s p 500 is a bit
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tech heavy these days with five big tech
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stocks dominating 23 of the entire fund
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it's up to you if you see this as a
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positive or a negative i personally
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don't mind as tech is doing really well
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and i do believe it's the future but
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there are so many different index funds
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that track the s p 500 which one do i
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pick well that depends on where you live
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in the world and what investing platform
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you're using the best i found in the usa
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the v5x index fund or the vu etf the
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best in the uk would probably be the usa
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etf but there are tons of other etfs
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that also track the s p 500. one thing i
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look out for is that the dividends are
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reinvested into the fund the only real
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difference between an index fund and an
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etf otherwise known as an
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exchange-traded fund is that these can
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be purchased or sold at any time
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throughout the day just like a stock as
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long as the market is open of course
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that's why they're exchange traded it's
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in the name index funds can only be
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purchased in full once per day so for
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example if the price of the fund is 500
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you must pay 500 whereas an etf can also
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be purchased in fractional shares which
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means you don't have to buy a full share
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and can instead invest whatever amount
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you like this is great if you're just
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starting out or you want a dollar cost
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average in i do this by making a stand
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in order each week and i don't even know
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it's gone from my bank account really
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and truly there isn't a huge difference
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between an index fund and an etf so just
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consider which one is best for you and
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take the plunge if you want to get
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started then public have given away a
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free stock worth all the way up to a
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thousand dollars if you live in the usa
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and free trade are giving you a free
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stock worth all the way up to 200 pound
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if you live in the uk i'll leave those
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links below basket number two is a total
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stock market index the total stock
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market index is well the definition of
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diversification you can't really get any
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more skin in the game for a lower cost
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than this so if you want to invest for a
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long period of time without having to
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check or even think about it then this
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is most likely the fun for you investing
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in everything means you can experience
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gains across the entire market and
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unless a crazy crash happens you should
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be okay but even if it does crash with
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time things bounce back i've seen three
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crashes since i've been an investor the
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dot-com bubble the 2008 financial crisis
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and the 2020 coveted crash i'm not going
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to pretend these crashes didn't hurt but
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long term every market i've invested in
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has bounced back the downside to this
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index is that it depends on the entire
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market trending upwards this means that
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there could be an individual stock that
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you really believe in that goes all the
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way to the moon but you might not
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experience those gains because that one
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stock doesn't play much of a role within
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the index fund if you're an active
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investor who likes to trade and mess
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with options this index fund is probably
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great to have as a safety net that you
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regularly invest into the best i've
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found in the usa is the vt sax index
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fund and the vti etf and the best in the
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uk is the vwrl etf these are vanguard
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index funds but you should be able to
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buy them on most platforms including
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public and free trade the third basket
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is the emerging markets index emerging
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markets are predicted by some experts to
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be on the rise and whether i agree with
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this or not i think it's important to
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have at least a little bit of exposure
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to these markets it's all well and good
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buying the s p 500 but when china or
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another emerging country has some great
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gains you'll end up missing out i'm
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definitely more excited about funds like
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the s p 500 but as i also do a lot of
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business in china i see firsthand why
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investing in emerging markets is a good
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idea just as an example of this growth
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when i first traveled to china i looked
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into buying an apartment in shenzhen
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this real estate was 47 000 and is now
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worth over a million this just shows the
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potential growth in these markets
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emerging market funds are definitely the
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most risky type of index fund we've
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discussed so far these funds include
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stocks from lots of different growing
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markets and can be very heavy with
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chinese companies taking a look at the
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list of the largest economies in the
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world a lot of them are emerging markets
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so it just makes sense to me to throw a
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little bit of money in for
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diversification also the population of
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these emerging markets is absolutely
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huge so i think there is certainly
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potential for growth not only in their
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own countries but in exports as well as
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i said before these are definitely more
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risky place but countries are adapting
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and evolving so i do like to invest in
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their future the best i've found in the
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usa is a
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v-e-i-e-x that's a mouthful etf and in
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the uk the v-f-e-m-e-t-f
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they don't make it any easier there do
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they basket number 3.5 is a bit of a
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bonus one as it's the metaverse index
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recently i've made a few videos on the
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metaverse and you guys seem super
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excited about it which is great because
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i am too i actually re-watched the film
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ready player one the other day and if
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you ever want to see the possibilities
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of the metaverse then i recommend
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watching this movie this has just made
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me even more confident the potential
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profit is insane and therefore it's not
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something that i can ignore because of
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this i've been investing more and more
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into companies that i think will be
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heavily involved in the metaverse and
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i'm not just talking about meta if you
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want to see my other picks i made a
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video about it a few weeks ago it's just
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here i've just been picking my favorite
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stocks and building my own portfolio but
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round hill investments are offering a
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meta etf this makes things easy as it
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offers exposure to lots of companies
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that are set to benefit and take part in
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the metaverse all with one simple buy
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but of course the metaverse isn't here
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yet and it's all just speculation at the
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moment also the top 10 companies in this
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etf are not all selections i would make
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so that's definitely something to look
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out for and consider this etf also has
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quite a high expense ratio of 0.75
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which may not sound a lot but trust me
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it's considerably more than a lot of the
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funds i've already talked about i think
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the best way forward is to look at what
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stocks the meta etf holds and then buy
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the ones you like individually but if
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this sounds like too much hassle then
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the etf is definitely something to
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consider when i first heard about index
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funds i thought it was fantastic as
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before i'd always thought investing was
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only for the rich the most important
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thing is getting started and index funds
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gave me the ability to start investing
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when i knew very little which meant that
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i could get the snowball rolling so if
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you're sitting on the fence then now is
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as good a time as ever to start your
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long-term investing journey so i'm going
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to leave the next video right up there
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but don't click on it just yet make sure
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to subscribe if you want to grow your
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wealth and don't forget to pick up the
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free stocks and bitcoin with the links
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below okay i'll see you over there
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