The Definitive Guide To Equity Index Investing
PART 1 - INTRODUCTION
This guide is Bankeronwheels.com’s deep dive into Equity Index Investing.
We approach Equity Index Investing by:
- Showing investors what matters when thinking about different asset classes
- Shortlisting the very best ETFs as a starting point for their analysis
Why Is Our Guide Different?
First, We design Selection Frameworks
For each type of investment and geography, based on Academia and our Portfolio Management experience, we first design a dedicated framework for ETF selection. Our guides are:
- Simple when possible
- Tailored to your needs
- Tax-Efficient with respect to dividends
- Sustainable when desired and intellectually honest
Then, We Select The Best Equity ETFs
We then use these frameworks to select the very best UCITS and non-UCITS ETFs. We take a Long-Term Investor’s Perspective and select ETFs that satisfy our criteria:
- Reputable
- Large
- Established
- Cheap
- Available and Liquid
Click below to jump straight to the shortlist.
Finally, We Consider All Audiences
This guide can benefit Bankeronwheels.com’s three core audiences. We highlight what sections you may find particularly helpful, depending on your profile:
The Golden Retriever, aka Wise Passive Investor – A hands-off Investor, typically using a Global ETF, may benefit from understanding why sticking with a simple, yet effective strategy is time and tax-efficient. We also cover the European and UK equivalents of popular US Vanguard Index Funds.
The Banker, aka Evidence-Based Investor – For Advanced Investors, this guide offers an introduction into why it may not be fully effective to include all small caps Stocks, given the evidence of small cap value factor premium. An Equity Risk Factor investing guide, that we will create, will further expand on this guide.
The Golden Retriever, aka Wise Passive Investor – A hands-off Investor, typically using a Global ETF, may benefit from understanding why sticking with a simple, yet effective strategy is time and tax-efficient. We also cover the European and UK equivalents of popular US Vanguard Index Funds.
The Cyclist, aka Semi-Passive DIY Investor – A DIY Investor willing to customise her portfolio can probably benefit the most from guides. Understanding how to control allocation to countries and company sizes, incorporate tax-efficient synthetic ETFs for certain markets like the U.S. or select ethical value screens can make your portfolio more efficient and personalised.
The Banker, aka Evidence-Based Investor – For Advanced Investors, this guide offers an introduction into why it may not be fully effective to include all small caps Stocks, given the evidence of small cap value factor premium. An Equity Risk Factor investing guide, that we will create, will further expand on this guide.
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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash.
What's in thIS Guide?
To Access Article click on a title below:
You are reading this introduction.
This article is golden-retriever (beginner) friendly.
What if you could only buy one single investment? When you speak to people that have been in the investment business for a long time and ask them the above question, the answer often is a Global Equity ETF.
This article is golden-retriever (beginner) friendly. It is one of the 3 highlights of the series.
Most investors starting out would be confused to learn that, for example, investing into a MSCI World ETF wouldn’t get them a Global exposure. International ETFs can be confusing due to different naming conventions. By understanding how markets are defined, you can control the allocation to them in your portfolio.
This article is one of the 3 highlights of the series.
Some of our readers like to implement tilts towards markets that are cheaper, for example in Europe or Asia. If implementing a tilt can make overall valuations more bearable for some investors so that they can stick to their strategy in the long run, it may be a sin worth pursuing.
What are risks and opportunity costs to consider by concentrating your investments? Even in the strongest country, like the U.S. Here are some thoughts on why you should start building your portfolio with a Global ETF, and not the S&P 500, and then, if needed, overweight some US Sectors, if you desire it.
This article is golden-retriever (beginner) friendly. It is one of the 3 highlights of the series.
If you read about passive investing from a US Source, you may have heard the Vanguard Fund tickers – VT, VTI or VXUS. What are their equivalents for European and UK Investors?
This article is golden-retriever (beginner) friendly.
Summary of Best ETFs across all categories of Equities.
This article is golden-retriever (beginner) friendly.
Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
Weekend Reading – JP Morgan Guide To Retirement
Surviving The Next Bear – Strategies To Profit From The Next Market Crash
Weekend Reading – Asset Class Returns since 1970 & Trend Following Strategies
Cracking the Code: Decoding ETF Names & Discovering Tools To Find Them
Broker Review Methodology
iWeb Share Dealing Review – Great For Inactive Investors
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