buy sp500 or this one stock instead?

Here’s a little thought you can have…

Should you buy the SP500…

Or buy the company that basically facilitates the functioning of the SP500?

Check out Leverage Shares. They offer leveraged and inverse ETPs based on popular stocks, ETFs, and custom indices - alongside unleveraged tracker ETPs and exchange traded commodities (ETCs).

All products are physically backed and listed on Europe’s largest exchanges.

‘You sound like you’re overcomplicating things, David.’

No, I’m trying to make you money, so hear me out.

Think of it this way.

Nvidia gets people rich by being the firm that all AI stocks need to survive.

Which firm is needed by people to allow the passive complex to thrive?

Little hint.

Our name has something to do with it…

Access 600+ CFDs across a wide range of asset classes. Or trade Futures and Options through leading global exchanges.

At a beta of 1.46-1.7 and a YTD performance of 28% versus IVV at 12%, this stock, while being so tightly linked to the SPX, has arguably better returns and is concentrated within the ETF remit.

Any guesses yet?

It’s BlackRock.

We mentioned this a while back and for those who like risk, this could largely be a more aggressive way to have some SPX exposure while having a better annual dividend yield than BlackRock’s own SPX ETF, IVV (1.27%), vs BlackRock’s shares at 1.84%.

Why am I telling you this today?

Well, it’s popped up in our model.

If you’re a Fink Academy member then you’ll know what we’re talking about with regards to the actual mechanics of the strategies here, and if you’re in the community you’d already have been alerted to this in Fink Fast.

BlackRock is now integral to the passive index globally with IVV being third on the largest SPX ETF list by AUM.

And we know the passive index is so important because speak to anyone and they’ll just say buy the SPX and wait for 30 years (boring, we want outperformance).

Which is why in the Fink Community we made a model portfolio which is extremely passive to show you can beat the SP500 while holding 50% in the SP500 itself!

We rarely make changes here, maybe 3 or 4 times per year.

But as you can see, even YTD this has done 47%… and it’s all in large cap stocks, barring Great Lakes which was more of a thematic Trump trade.

So there’s a tip.

Long BlackRock if you want outperformance during SPX rallies.

If you’re a busy professional or business owner interested in simplifying & systemising your investing approach and finally out perfoming the SP500 with simple methods that won’t need you sitting at your computer all day, check out our Investment Assessment - we created The Fink Academy for people like you.