Is The S&P 500 Still The King Of Monthly Investing?

What can you discuss with a client that is content with investing monthly in a S&P500 ETF?

Investing in the market leaders in the world’s biggest economy in the world’s leading currency is undoubtedly a good strategy. So we can start by congratulating your smart client and make small talk about meme stocks. But does the S&P 500 still fulfill the above criteria, or is there a bigger economy emerging somewhere else? What about China and India? After seeing the stunning Xiaomi SU7 retailing for $29000, I had to find out.

I compiled the below graph to show the performance from the last ten years of the main indices in USA, China and India. It clearly underscores the dominance of the SPY, but the GDP growth in the second graph tells me to book an annual review of this matter in my calendar.

So you might want to ask your client: Are you already invested in China or India? And what color is your SU7?

Data set:
——–
China: iShares China Large-Cap ETF (FXI)
India: iShares MSCI India ETF (INDA)
USA: SPDR S&P 500 ETF (SPY)

*The graph below includes the ETF management fees (SPY 0,09%, INDA 0,68%, FXI 0,74%) which slightly impacts the performance.