To The Moon

🌟🌟🌟Can I Outperform A Bull Market?  The answer is Yes if I invest in plain vanilla ETFs long term.  Take for example $SPDR S&P 500 ETF Trust(SPY)$  It recently closed at its all time high at USD 555.05!  SPY is now up 17.3% year todate and in 2023, SPY has jumped 26%.  However  if we look at its performance 5 years ago, it was up 85%.  Since its inception on January 22 1993, SPY is up a whopping 1162.27%!

The power of compounding works best when we hold our stocks long term.  I have invested in $SPDR Portfolio S&P 500 ETF(SPLG)$ since I started my investing journey with Tiger Brokers in 2020.  SPLG is a mini version of SPY.  Both ETFs track the S&P500 Index and both ETFs are managed by State Street Global Advisors.    

The Top 10 holdings in SPY and SPLG include the Magnificent 7 - $Microsoft(MSFT)$  $Apple(AAPL)$  $NVIDIA Corp(NVDA)$  $Amazon.com(AMZN)$  $Meta Platforms, Inc.(META)$  Google and Tesla as well as Berkshire Hathaway, Broadcom and Eli Lilly. 

The Top 10 holdings take up 36% weightage of the ETFs.  Total number of holdings is 505.

The main differences between SPY and SPLG are the Fund size and expense ratio.  SPY has a huge market capitalisation of USD 500.62 billion and is the preferred ETF by big institutions and traders due to its liquidity.  SPLG is a mini version of SPY with a market capitalisation of USD 40.22 billion. 

The expense ratio of SPY is 0.09% while SPLG is a very low 0.02%.  In fact SPLG has the lowest expense ratio among all its other competing ETFs. The lower the expense ratio, the more money I get to keep in my pockets. 

Warren Buffett said that the best thing to do is to own the S&P500 Index Fund.  When you buy the S&P500, it includes 80% of the US equity market.    That is essentially investing in the growth of the American economy over time.  

The average yearly return of the S&P500 is 10.6% over last 20 years.  Investing USD 1000 a month for 20 years would give us around USD 687,000.  

My favourite way of investing is ETFs.   I am currently up 27% with SPLG.  The best part of SPLG is collecting its dividends every 3 months.  The current dividend yield is 0.97%.

Slow and steady is my investment style.  It may even be boring but with patience and time in the markets, I hope to grow my portfolio and reap bountiful returns in the long term.   That's how I outperform a Bull Market or even a Bear Market - just by buying and holding long term my favourite ETF SPLG. 

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