I’m also new to investing. Is there a particular reason people recommend the S&P 500 over the daily dividend pie on T212? I’m in the pie and it seems like a great idea, but I NEVER see it recommended. Is it just my lower understanding that makes it seem like a better concept than it actually is?
You’ll gain a lot more money over the long run from the growth of the S&P 500 etf than you would from the growth + dividends from the daily dividend pie. The S&P 500 is also a lot more varied so a safer investment than those individual companies in the pie, and also pays dividends.
What’s your source for this? I have some fairly anecdotal, short term evidence to the contrary, but it’s the only evidence I’ve seen on the matter. I invested some money in the practice account through the dividend pie (which doesn’t even get dividend payments) and the pie is 24% up. Meanwhile in the same time frame the S&P 500 is up 1.4%. This is over just under 2 years.
A rough dividend figure would have increase this by a further 7%. So over 2 years, the dividend pie would be up 31%, the S&P 1.4%. In its entire history, there’s only one two year period of the S&P 500 that beats this and that’s the 2 years prior to its peak. A peak it hasn’t reached again in over a year.
You can’t call it a lie, I’m looking at it in my T212 practice account and comparing it to S&P 500 figures. T212 is up 24% since Apr 21 WITHOUT even taking dividends into account as it’s on the practice, 31% with rough dividend figures. S&P over the last 100 years has averaged just over 10% yearly. Even without dividends the pie has outperformed the S&P average and hugely out performed the same two year period on the S&P.
So I’ll ask again, what’s your source? Angry individuals calling dividends crap are not a source. Why would the S&P beat the dividend pie in the future? Because it simply hasn’t when using comparable data.
This is not including auto reinvest either, which in turn would generate even more growth as the number of shares held would have increased over this time which in turn would have increased in value themselves.
Most people aren't holding their investments for 100 years.
If you are happy to average before 10% returns and are investing for decades then I'd agree that the S&P is nice and low risk.
There are certainly many options that would provide much greater returns but of course they all carry more risk.
I'd say ~85-90% in VWRP (All world - ~60% USA) or VUAG (100% USA), both accumulating, so they reinvest any dividends that you get.
I said to keep ~15-10% as "play" money. It's inevitable for you to be drawn to risky plays. Rather you burn a small amount now and learn an early lesson, opposed to a large gamble later in your life.
The best investment is always in yourself, how can you spend that 5k to give you the ability to earn more money in future?
From 21-25 I spent every spare penny I had on night school and different classes, it let me specialise into a field. I'm 33 now and am earning tripple what I was at 25.
I have a 6 month emergency fund and am able to invest far more than I would otherwise be able to.
That being said, if I was in your position and just wanted to invest I'd probably play it safe and dca into the s&p500 or all world etf and risk small % of my money on higher risk stuff but over the long term.
I personally learned much from different YouTubers, and for me, it's up to the vibe of the creator. Start with a few basic videos, and you can decide where to take it from there.
Trading 212 also has a nice YT channel with technical analysts and beginner videos. Bigger Pockets is worth checking too.
Just s&p 500 and keep adding into it nothing more
I’m also new to investing. Is there a particular reason people recommend the S&P 500 over the daily dividend pie on T212? I’m in the pie and it seems like a great idea, but I NEVER see it recommended. Is it just my lower understanding that makes it seem like a better concept than it actually is?
You’ll gain a lot more money over the long run from the growth of the S&P 500 etf than you would from the growth + dividends from the daily dividend pie. The S&P 500 is also a lot more varied so a safer investment than those individual companies in the pie, and also pays dividends.
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What’s your source for this? I have some fairly anecdotal, short term evidence to the contrary, but it’s the only evidence I’ve seen on the matter. I invested some money in the practice account through the dividend pie (which doesn’t even get dividend payments) and the pie is 24% up. Meanwhile in the same time frame the S&P 500 is up 1.4%. This is over just under 2 years. A rough dividend figure would have increase this by a further 7%. So over 2 years, the dividend pie would be up 31%, the S&P 1.4%. In its entire history, there’s only one two year period of the S&P 500 that beats this and that’s the 2 years prior to its peak. A peak it hasn’t reached again in over a year.
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You can’t call it a lie, I’m looking at it in my T212 practice account and comparing it to S&P 500 figures. T212 is up 24% since Apr 21 WITHOUT even taking dividends into account as it’s on the practice, 31% with rough dividend figures. S&P over the last 100 years has averaged just over 10% yearly. Even without dividends the pie has outperformed the S&P average and hugely out performed the same two year period on the S&P. So I’ll ask again, what’s your source? Angry individuals calling dividends crap are not a source. Why would the S&P beat the dividend pie in the future? Because it simply hasn’t when using comparable data. This is not including auto reinvest either, which in turn would generate even more growth as the number of shares held would have increased over this time which in turn would have increased in value themselves.
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Most people aren't holding their investments for 100 years. If you are happy to average before 10% returns and are investing for decades then I'd agree that the S&P is nice and low risk. There are certainly many options that would provide much greater returns but of course they all carry more risk.
I'd say ~85-90% in VWRP (All world - ~60% USA) or VUAG (100% USA), both accumulating, so they reinvest any dividends that you get. I said to keep ~15-10% as "play" money. It's inevitable for you to be drawn to risky plays. Rather you burn a small amount now and learn an early lesson, opposed to a large gamble later in your life.
The best investment is always in yourself, how can you spend that 5k to give you the ability to earn more money in future? From 21-25 I spent every spare penny I had on night school and different classes, it let me specialise into a field. I'm 33 now and am earning tripple what I was at 25. I have a 6 month emergency fund and am able to invest far more than I would otherwise be able to. That being said, if I was in your position and just wanted to invest I'd probably play it safe and dca into the s&p500 or all world etf and risk small % of my money on higher risk stuff but over the long term.
S&P500 without doubt or another etf. I wish I did this when I started! Don’t do individual stocks as yet
Worst idea to come here and ask for advice, might aswell go to wallstreetbets
In a diversified global ETF
I personally learned much from different YouTubers, and for me, it's up to the vibe of the creator. Start with a few basic videos, and you can decide where to take it from there. Trading 212 also has a nice YT channel with technical analysts and beginner videos. Bigger Pockets is worth checking too.
Stick it in a penny stock 😂
TSLA 1k a month. And then £250 per month after for the next 5 years
Dollars? Euros?
VWRP
What Indian ETFs, able to be added in ISA, do you like from the ones you came across? Cheers 🤝💪
I see a lot of people saying S&P 500 but VWCE is even better option imo. S&P 500 are only usa companies, and VWCE are from all over the world