I Invested £10 Everyday Into The S&P 500 on Trading 212!

Invest Insight
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#Finance #PesonalFinance #InvestInsight #Invested£10Everyday #IntoS&P500 #Trading212
So it has been now 60 days since I began to invest £10 every single day into the S&P 500,
even though the S&P 500 was at all-time highs. Now I've been doing this on Trading212,
and as you can see, every single day that the stock market has been open,
I have been investing £10. And on the weekends and on off days, that £10 is accumulated and
then invested in the next available day. But if I scroll down all the way to the end,
I started on the 12th of May 2025. And that day I purchased my first share for £10.74.
Now that's going to become more important as I show you what fund I'm holding.
But let's just do the initial math first. Now over those 60 days, I invested £600. So let's
go all the way back and see how many shares we would have had if I had invested £600 in one
go instead of spreading them out over 60 days. And the math is pretty simple. So £600 divided by
£10.74, that would give me 55.84 shares. So that value will allow us easily to calculate
what we would have had today. And I think you'll find that the results are quite shocking.
As always, if you would like to sign up to Trading212 and receive a free fractional share
worth up to £100, all you have to do is to click the link in the description box down below.
Alternatively, if you've already signed up to Trading212 in the past 10 days, but have not
received your free fractional share, all you have to do is to click the three horizontal line menu
over here, scroll all the way down until you see the section use promo code. And in this section,
just enter my code J U B A I R and you should receive a free fractional share. So how can we
even explain what the S&P 500 has been going through over the past 60 days and this year in
particular. So as you can see from this graph year to date, the S&P 500 has had an absurd journey.
It is up by over 6%, which in a normal year 6% is a great gain. However, you have to realise that we
had one of the quickest crashes in living history. But when I say living history, I probably just
mean as an investor, you can see about a 20% drop from February to April. And on April the 8th,
the S&P 500 was under 5000 points, but today it is well over 6000. Now during that time,
we've had a full recovery from the crash and World War Three scares, but nothing it seems is getting
in the way of the S&P 500 going up. Let's not even mention the tariffs, which led to of course,
the first crash that we saw. Now, even though the president of the United States of America
is trying to introduce new tariffs, I think this time the S&P 500 is going to be extra cautious.
Those who had sold out on the previous fear of tariffs would have been severely burnt. And I
think everyone is cautious just because the president is going to be announcing new things.
I think people are just going to wait out and see how it is instead of selling out shares,
which they know that someone else is going to buy. So as we speak, the S&P 500 looks like it's
continuing on its bull run. Of course, this is not financial advice, investment advice, or anything
like that. No one knows where it's going to stop. I'm just interested in showing you guys what
happened over the past 60 days in my Trading212 portfolio. So this is the fund that I decided to
go for. This is the SPDR S&P 500, which is a USITS ETF, which essentially allows UK investors to get
a slice of the S&P 500 action. Now, one thing that you will note comparing yourself with the
S&P 500 that you may find on Google Finance, this is an unhedged version of the S&P 500.
So there is a secondary component, which is the currency difference between the dollar and the
pound. As the pound has been strengthening against the dollar, investors in the UK are getting less
of a return compared to the S&P 500. Now, I knew this going into it. I've made a previous investing
£10 or £100 a day series where I used a hedged version of the ETF. I thought I would use an
unhedged version just to show you guys that the choice in the S&P 500 fund that you go for is
completely up to you. I'll show you many different funds. I don't have a personal preference, really.
So you can see with this fund over the past year, it is up by 7.96%. You can also see my average
buying price here, £10.86. Now, this fund is in pounds and pence. You can invest into euros or
dollars, but why would you do that? You're paying an additional foreign exchange fee on top of
everything else. Now, this also happens to be one of the cheapest S&P 500 funds you can get in the
UK. And this fund has a total expense ratio of only 0.03%, making it more than two times cheaper
than something like the Vanguard S&P 500. So I put my investments into a pie on Trading212 so I can
track them properly. You can see so far I have deposited £600. That is my net deposit. So every
day, including the weekends, this pie takes out £10 from my cash and puts it in here. On Monday,
it invests £30. And on off days in the stock market, it will do similar things. You can see
over the past month, as the S&P 500 has been gaining and gaining, this pie over that same
period is up by 4.7%. And over the past month, it is up by 21.03%. Now, if we compare dollar
cost averaging versus lump sum investing, one important factor to make dollar cost averaging
more efficient are dips in the market. We can see over the past three months, there haven't
really been any dips since I started investing. So the difference between lump summing and dollar
cost average might be closer than you think. So here finally are the results of the experiment.
In 60 days, my portfolio investing £10 every single day into the S&P 500 with the SPXL is up
by 4.21%. Now that is a gain of £25 and 28 days. In other words, that's two and a half days worth
of interest that we have received. So if we were to compare lump sum with dollar cost averaging,
what would we actually have? Now this is actually super surprising. So as you can see by dollar
cost averaging £10 every single day that the stock market was open, we have got ourselves
55.22 shares. Now that is hilarious because if we had lump sum invested 60 days ago,
we would have 55.84 shares. So over this time period, lump sum investing would actually have
beaten out dollar cost averaging. Remember, this is an accumulating fund. So it's an apples to
apples comparison. Honestly, I did not expect the results to be this similar, especially over 60
days. But I think the main reason as to why dollar cost averaging hasn't beaten out lump sum
investing over this time period is of course, because with dollar cost averaging, you benefit
when the prices drop, then you can average down your price. So at the current market price,
lump sum investing would have given you around £632, which is actually noticeably more than
our current value of £625. That being said, if I had to personally choose between lump sum
investing or dollar cost averaging, I would always pick lump sum investing. This is because
we invest into funds that we hope will go up as a function of time. And if you are expecting
something to go up, then realistically, why would you spread your money out instead of just doing
one lump sum? Of course, this is completely up to you. And I'm going to continue this experiment
giving you monthly updates. Let's see how long we can actually do this. Remember, this is real
money. So currently call me stupid, but I have 117,400 pounds in cash in my trading to onto stock
size. I actually do regret this because it would have been a lot better in the S&P 500. However,
given trading to onto his current daily interest payment, I am receiving £13 and 69 pence,
which means if the interest rate stays the same, I can do this experiment indefinitely. Every day
in my account, I receive £13 and 69 pence. So actually, I'm profiting £3 and 69 pence every day
and that £10 goes towards investing into the S&P 500. Of course, do bear in mind that most of the
cash put into this interest on cash feature in the two trading to onto invest accounts,
the invest account and the stock size. Most of that cash is put into qualifying money market
funds. So capital is at risk because it is classed as an investment. So make sure to check out some
of my other videos and I'll see you in the next video.
