Best ETF To Buy And Hold For South Africans (2021)

Summary

The video script discusses investment strategies focusing on the balance between investing in large-cap companies for stability and small-cap companies for growth potential. It explores the characteristics of developed and emerging markets, emphasizing the importance of diversification to mitigate risk. The speaker suggests considering ETFs that offer exposure to both large and small companies across various markets, providing viewers with a comprehensive guide to making informed investment decisions.

Takeaways

• 😀 Investing can be made simple by understanding the basics and diversifying your portfolio.
• 🎁 The video provides a complete guide on DIY investing, suggesting strategies for managing risk and potential returns.
• 🌐 The speaker emphasizes the importance of spreading investments across developed and emerging markets to balance risk and opportunity.
• 🌳 Investing in developed markets like the USA, Canada, New Zealand, and Australia is highlighted as a stable strategy, but also notes the economic stability and growth potential of these regions.
• 🌍 The video discusses the characteristics of emerging markets, noting their economic volatility and the need for robust infrastructure and financial systems.
• 🏙️ The speaker suggests that investing in both large and small cap companies can offer a balance of stability and growth potential.
• 🐘 Blue chip companies are mentioned as stable investments with a long history of growth, but also notes the potential of smaller companies for significant returns.
• 📈 The video recommends considering the performance of top companies in major markets and how they contribute to the overall economy.
• 🌐 The speaker explores the idea of global diversification, suggesting that investors look beyond their home country for investment opportunities.
• 📊 The video concludes with a summary of the different investment options discussed, emphasizing the need for careful consideration of risk and potential returns.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is investing in different types of markets, focusing on developed and emerging markets, and the potential benefits and risks associated with investing in large cap and small cap companies.

What does the speaker suggest about investing in developed markets?

The speaker suggests that investing in developed markets can be more stable and less volatile compared to emerging markets, but it might also have lower growth potential. Developed markets include countries like the USA, Canada, New Zealand, and Australia.

What are the characteristics of emerging markets according to the script?

Emerging markets are described as having higher economic growth potential but also being more volatile. They often require more robust infrastructure and financial systems to be considered developed.

How does the speaker differentiate between large cap and small cap companies?

The speaker differentiates large cap companies as those that are more established and have a larger market capitalization, while small cap companies are generally newer and have a smaller market capitalization. Investing in small cap companies can be riskier but potentially more rewarding.

What is the potential benefit of investing in small cap companies mentioned in the script?

The potential benefit of investing in small cap companies is that they may offer higher growth potential and the opportunity to invest in innovative companies at an early stage, similar to how Tesla was once a small cap company.

What is the speaker's view on the importance of diversification in investing?

The speaker emphasizes the importance of diversification in investing to spread risk and potentially increase returns. This can be achieved by investing in a mix of developed and emerging markets, as well as in companies of different sizes.

What are some examples of developed market companies mentioned in the script?

The script mentions companies like Microsoft and Google as examples of large cap companies in developed markets.

How does the speaker discuss the potential risks of investing in emerging markets?

The speaker discusses the potential risks of investing in emerging markets by highlighting their volatility and the need for strong economic and financial systems to support stable growth.

What advice does the speaker give on choosing between investing in developed and emerging markets?

The speaker advises considering the investor's risk tolerance and confidence in the future growth of emerging markets. They suggest a balanced approach, potentially investing in both developed and emerging markets to achieve a diversified portfolio.

What is the speaker's recommendation for investors looking to diversify their portfolio?

The speaker recommends looking at global indices like the FTSE Global, which includes companies from both developed and emerging markets, to achieve a diversified exposure to different types of companies and markets.

Outlines

00:00

🌐 Investing in Developed and Emerging Markets

This paragraph discusses the complexities and opportunities in investing in developed and emerging markets. It highlights the need for a balanced approach, spreading risk across different countries and market sectors. The speaker emphasizes the importance of understanding the economic stability and growth potential of various countries, such as the USA, Canada, New Zealand, and Australia, which are considered developed markets. They also mention the need for robust infrastructure and financial systems to qualify as developed countries. The paragraph also touches on the volatility and potential of emerging markets, suggesting that investing in these markets can be risky but also highly rewarding.

05:01

📈 Diversification in Global Markets

The speaker in this paragraph focuses on the importance of diversification in global markets, particularly in relation to large and small cap companies. They discuss the FTSE Global index, which includes companies from around the world, and the benefits of investing in both developed and emerging markets. The paragraph also touches on the concept of exposure to different market sectors and the potential benefits of investing in small cap companies, which can offer significant growth potential. The speaker advises on the need to balance investments between large cap companies, which are more stable, and small cap companies, which can be more volatile but also offer higher returns.

10:03

🏦 Investing Strategies and Market Performance

This paragraph delves into various investing strategies and the performance of different market sectors. The speaker discusses the performance of gold and small cap companies in developed and emerging markets, and the importance of selecting the right investments based on confidence in future growth. They also mention the availability of options for South Africans to invest in global markets, highlighting the need for careful consideration of the total expense ratio and the total cost of investing. The paragraph concludes with a discussion on the performance of large cap companies in major markets and the potential for growth in emerging markets.

15:06

💼 Business Strategies and Market Crashes

The final paragraph discusses the impact of market crashes on businesses and the importance of having a robust strategy in place. The speaker references the market crashes in May and June, emphasizing the need for businesses to be prepared for such events. They suggest that investing in a diverse range of markets and sectors can help mitigate the risks associated with market volatility. The paragraph concludes with a call to action for viewers to explore more comprehensive guides on business strategies and DIY investment options, inviting them to engage with the content through comments and further discussions.

Keywords

💡Investing

Investing refers to the act of allocating resources, such as money, with the expectation of generating an income or profit. In the context of the video, investing is the central theme, focusing on how viewers can approach it to make it simple and potentially profitable. The script mentions various strategies and considerations for investing, such as diversification and market selection.

💡Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or sectors to reduce risk. The video script suggests diversifying investments to spread risk, which is crucial for managing the unpredictability of financial markets and potentially increasing returns.

💡Developed Markets

Developed markets are economies that are characterized by stable and mature financial systems, infrastructure, and economic growth. The script discusses investing in developed markets like the USA, Canada, New Zealand, and Australia, highlighting their stability and the potential for lower volatility compared to emerging markets.

💡Emerging Markets

Emerging markets are countries with developing economies that are experiencing rapid growth and industrialization. The video mentions the potential for higher returns in emerging markets but also notes the higher risk and volatility associated with these investments.

💡Large Cap Companies

Large cap companies are large corporations with a market capitalization of over $10 billion. They are often well-established and have a significant influence on the economy. The script discusses the benefits of investing in large cap companies, such as stability and lower risk, and contrasts them with small cap companies.

💡Small Cap Companies

Small cap companies are smaller corporations with a market capitalization of less than $2 billion. They are often considered more volatile but can offer higher growth potential. The video script explores the idea of investing in small cap companies for potential high returns, despite the higher risk involved.

💡Risk

Risk in the context of investing refers to the possibility of losing some or all of the original investment. The video script emphasizes the importance of understanding and managing risk when investing, particularly when considering different market types and company sizes.

💡Economic Stability

Economic stability refers to a state where an economy is not subject to significant fluctuations in growth, inflation, or employment. The script mentions the importance of economic stability in developed countries as a factor that can influence investment decisions.

💡Financial Systems

Financial systems encompass the institutions, markets, and regulations that make up a country's financial infrastructure. The video discusses the need for robust financial systems in developed countries as a prerequisite for stable and reliable investment opportunities.

💡Market Volatility

Market volatility refers to the rapid fluctuations in the price of securities and the overall market. The script highlights the differences in volatility between developed and emerging markets, suggesting that investors must be prepared for more significant price swings in certain markets.

💡Portfolio

A portfolio is a collection of financial assets such as stocks, bonds, and cash equivalents held by an investor. The video script suggests building a diversified portfolio that includes a mix of developed and emerging markets, as well as different company sizes, to balance risk and potential returns.

Highlights

Investing can be made simple with the right approach.

Diversification is key to spreading risk in investment.

Developed markets offer stability and growth potential.

Emerging markets can be volatile but also offer high growth potential.

Large cap companies are stable but may have limited growth potential.

Small cap companies can offer high returns but are riskier.

A balanced investment strategy can combine the benefits of large and small cap companies.

Investing in developed markets can provide exposure to stable economies and infrastructure.

Emerging markets require careful consideration due to their economic and financial volatility.

The performance of companies in developed markets can be a good indicator of economic health.

Investing in small companies in emerging markets can be risky but potentially very rewarding.

The S&P 500 is a popular index for investing in large companies in the US.

Investing in a global index can provide exposure to a diverse range of companies and markets.

The total cost of investing should be considered, including fees and expenses.

Asset allocation is crucial for managing risk and maximizing returns.

Investors should consider their own risk tolerance and investment goals when choosing where to invest.

The performance of emerging markets can be influenced by global economic trends.

Investing in a mix of developed and emerging markets can provide a balanced portfolio.

Understanding the economic conditions of different countries is essential for informed investment decisions.

Transcripts

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performance of over 9000 wangen het

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day keeps you like de muis and if you

want to see and more comprehensive guide

on helping businesses and how you can

diy universal potlood en check-out

beastie video's en die verf in the

questions will feel free to geleden met

mij in de comments and so is wel lekker

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