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Single Stock Dividend Portfolio Vs S&P 500 ETF Portfolio - 1 Year Performance - YouTube
Channel: BrentInvesting
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hello everyone and thanks for tuning is
the financial investor Channel my name
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is Brent and today we're gonna be going
over individual stocks versus
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exchange-traded funds what should you
buy now we're going to be taking a look
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at my portfolio over on m1 finance I saw
a video recently I researched it a
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little bit here and I wanted to kind of
go over my performance because I have
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been investing over on m1 finance in the
individual account following ticker
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symbol vu which tracks the S&P 500 but I
also have a Roth IRA which has 33 single
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stock stocks inside of it and it just
sort of performs on its own so I wanted
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to do what is the one-year performance
between the S&P 500 ticker symbol Vuh
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which is inside the taxable County
individual account and my Roth IRA which
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holds 33 holdings for the past year so
if you are brand new to the channel hit
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that subscribe button below if you do
enjoy this video find it helpful hit
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that thumbs up and if you have any
comments yourself drop it into the
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comment section I always read and apply
to all your comments let's go ahead and
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get into the video so I was kind of
researching on this and kind of thought
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back you know what I have actually been
investing since back in January and
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February 2018 I have at least one year
of data to go over so I thought this
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would be kind of an interesting video to
showcase so here I do have the
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individual accounts here I'm going to be
going just over the one year performance
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of the individual account which is the
taxable account and the Roth IRA now the
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individual account for the one year
performance which only holds vu is up
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seven point seven six percent now if we
look at the S&P 500 one year performance
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if we locate that it is up to 0.05
percent the Dow Jones is up 2.09
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and the Nasdaq is down for the year one
point zero four so you may be saying
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what the heck why is your portfolio
showing one year up seven six percent
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isn't it only supposed to be two point
zero five well
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if I were not adding any equity at all
on Lowe's my unit cost would have stayed
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the same I would have added anymore
equity at Lowe's and yes my portfolio
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performance what roughly be sitting
around 2.05 but what has been happening
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in this portfolio
well I fund this account with a hundred
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books back on December 7 2018 hundred
dollars going in that has been my only
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investment now I have had referrals from
viewers subscribers friends family
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members co-workers who I've showed the
em1 finance platform to referral in the
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comment section below
and they had really liked the platform
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they've signed up and I begin to get
referrals both them and I have got
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referrals for signing up either 20 bucks
or 10 bucks or $25 just depending on the
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referral and a time bonus that m1
finance offers so in the past year I was
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able to a virgin use the referrals into
the market so every week or every month
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I would have some referrals coming in
and over that time frame this portfolio
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crew and average into the market all
during the downturn of 2018
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if we look at ticker symbol ville and we
look at the detail here for the past
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year let's just say three years now in
2018 in January we were at all-time
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highs and what happened February we fell
10% we corrected down 10% we corrected
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an additional 20% by December 24th and
then we had a huge market rally well
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guess what was taking place between
January and December I was getting
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referrals I was averaging into the
market taking advantage of that dip and
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adding more equity in and when the
market recovers and you've been adding
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equity in at those lows lowering your
unit cost
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well when the performance when the when
the stock market recovers your equity
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that you've added at lows compounds on
itself and the returns of the market and
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you actually end up with a much higher
return than if you had just invested a
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hundred bucks and just left it in there
if I had just left a hundred dollars in
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this account I would have and I returned
roughly of around 2.0 five we
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actually test this by going and sharing
this pie what this is going to do is
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create a copy of this one and I can go
ahead I'm going to go ahead and paste it
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here and it's going to load up here for
us and this is actually going to show us
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without any influence of equity this
portfolio was created back on June 5th
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with a hundred dollars it's never had
any additional equity added into the
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portfolio and it sort of tracked the one
year performance of the S&P 500 index
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but you can see here it fell all the way
down to $85 in eight and five cents
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there on December 24th and then we had a
huge market rally so we had no equity
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influence in this and we can see here
that the one year performance is now
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showing one point eight nine percent
that is much closer to that one year
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performance of the index of two point
zero five now ticker symbol vu does not
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follow the SP 500 index percent four
percent or dollar for dollar this just
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has holdings in it which tracks very
similar to the index but doesn't always
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get it 100 percent plus you have that
expense ratio here of 0.03 so with that
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taken into consideration let's also go
look at the individual stocks now again
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we jump over to the Roth IRA recently
we've had a huge market rally here on
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Tuesday June 4th and we can see here if
you watch my Monday or Tuesday video
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where I went over my one month
performance for me I was down in market
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gains down some $50 and one single day I
went from being down $50 to being up six
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hundred and one dollar so the stock
market is very volatile out there here
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we're looking at a one-year performance
out of ten point four two percent again
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we were only at a 7% return for the past
year with the individual account which
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has been averaging into the market
almost slows this is showing a ten point
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four two percent that again is because I
took advantage of those dips when the
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stock market was falling in 2018 I was
constantly adding equity here you can
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see here for the most part I was pretty
slow between January and August that is
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because I was bill
my real estate business I was kind of
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doing a lot of that in the background
now when the markets really started to
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tank around October September that is
when I really begin to really throw in
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chunks of equity into the portfolio and
you can see that we grew this portfolio
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very quickly here taking advantage of
all these dips and by December 24th I
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had roughly double the portfolio equity
from 55 to now nearly 10,000 now we've
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continued to average and add equity into
the markets on lows on those dips that
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we've recently had here and overall for
the one year currently as of June fourth
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we're up ten point four two percent in
comparison to the individual account
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let's go ahead and jump back to the
individual account which is up seven
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point seven six now what happens if I
don't include the equity here that I've
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added what if I just look at it the same
way that I looked at the individual comb
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I click over here and I share my time I
go ahead and copy this I jump to another
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window and I go ahead and paste that in
there now what is the one year
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performance of the Roth IRA so the Roth
IRA here is up five point four nine
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percent without any equity being
influenced in the specific portfolio so
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this is just adding a hundred dollars
into the account not touching it for one
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year if I had not touch it in one year
you know what I'm gonna go ahead and do
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these side-by-side I'm gonna jump over
to the individual I'm gonna go ahead and
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share this pine copy this open up a new
window paste that in there and then put
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these there we go so I have the
individual count one year one point
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eight nine one year for the Roth up five
point four nine so a much different
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number there nearly three point one one
point nine two five point four nine so a
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little over what four percent they're
different from not adding any new equity
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now that is the one year performance
between the individual count which is if
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you had just added a hundred dollars
follow the SPI 500 never added any more
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equity into the account you would be
sitting in roughly at a one point eight
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nine percent increase if you had taken
the Roth IRA with all my holdings based
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on my target percentages
put in a hundred bucks you would be
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sitting at a hundred and five dollars
and 49 cents now this doesn't really you
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know you always want to add more equity
what's the point of just pouring water
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into a bucket and just letting it sit
there it's not gonna do anything it's
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not gonna create a stream you want to
get multiple buckets throw it in and
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watch the stream build so here we're at
a hundred and one dollars and 89 cents
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of equity here after one year and on
this portfolio we're showing a hundred
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and five dollars and forty nine cents of
equity if there was no equity involved
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in these returns so over the three year
all right won't go over that we just
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wanted to kind of show that showcase the
one year performance there this is the
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five year at sea if actually it loads up
thirty eight point one seven percent now
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the way that these returns are kind of
calculated here within the m1 finance
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performance calculations m1 finance does
not take rebalancing or reinvesting of
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dividends in the performance so when I
look at the individual count this has a
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yield of one point seven eight with an
expense ratio of 0.03 the dividends in
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this account you know with an average of
one point eight nine percent return
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which portfolio do you believe would
have higher dividends get paid out into
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the account and then being able to
reinvest it that would probably be the
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Roth IRA here with an average yield of
3.5% so that is basically all I wanted
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to kind of cover in today's video we're
just kind of going over single stocks
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versus exchange-traded funds i 100%
believe brand new investors should begin
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their investing journey within
exchange-traded funds because this helps
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get them emotionally ready for those
read days and those read days will take
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place you would just have to stomach the
redness you won't have to sell what you
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really need to do during the read is
just buy into the market buy out those
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lows take advantage of the dip take
advantage of the value out of the market
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and when the market does recover if you
follow the indexes it generally does or
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always does it has always returned and
recovered a hundred percent of the time
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you'll just be better off because you
bought at these lows and when you do get
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that equity return or the
market does recover because you lowered
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your unit cost it would just be higher
off overall the new market now one year
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their individual count up 1.89 the Roth
IRA five point four nine and the index
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here up 2.05 2.09 and Nasdaq down 1.04
so that is it for today's video I just
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wanted to do a quick comparison for the
one-year performance if I had invested
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in an exchange-traded fund or in my
single stock out locations the single
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stock allocations one off this time but
let's do it again I'm gonna try and
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remember this back next year we're gonna
look at the one year performance between
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again the individual count and the Roth
IRA single stock allocations and we'll
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kind of do a comparison then as well so
that is it for today's video if you guys
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did enjoy this video hit that thumbs up
I thought it was an interesting idea if
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you guys are also invested in
exchange-traded funds and individual
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stocks compare those portfolios compare
the performance has your single stocks
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performance outperformed your exchange
shorted funds performance
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well let me know in that comment section
below and of course if you have not yet
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subscribed definitely hit that subscribe
button below I'd really do appreciate
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all the new subscribers all those new
comments that I've been receiving I
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really appreciate the feedback and is it
for today's video I will see you guys
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next time have a great day bye
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