Why One-Click Investing* Can Beat Stock-Picking
When it comes to growing your wealth, the age-old debate of stock-picking versus diversified investing often pops up.
While stock-picking might sound exciting, the stats don’t lie: investing consistently in a diversified portfolio, like Beanstox Stocks 500 that invests in ETFs tracking the S&P 500 Index, often wins the long-term game for most people. Here’s why.
Odds Are in Favor of Diversified Investors
It might feel tempting to try and "beat the market" by picking individual stocks, but research shows how tough that really is:
· ~90% of actively managed funds failed to outperform the S&P 500 over the last 10 years.¹
· Only 1% of day traders consistently earn above-average returns over itme.²
· Missing just the 10 best trading days in a decade can cut your returns in half.³ Market timing is nearly impossible.
The S&P 500, on the other hand, has historically delivered around 10% annualized returns⁴ over the long-term, making it a powerful wealth-building tool for patient investors.
Why Waste Time Guessing if You Can Invest in One Click?
With Stocks 500, you click and choose one investment account and can automate investments with recurring deposits.
Diversification: Stocks 500 invests in an ETF that track the S&P 500 Index made up of 500 of the biggest US companies. This diversification can reduce risk and protect you from the ups and downs of individual stocks.
Consistency: Recurring investing ensures you’re regularly putting money into the market, taking advantage of dollar-cost averaging. You’ll just consistently buy more shares over time, smoothing out the impact of market volatility.
No Guesswork: Forget spending hours analyzing stocks or stressing about market trends. Save time and reduce stress. With just one click you can select Stocks 500, letting you focus on what really matters—living your life.
The Long-Term Advantage
Imagine investing $100 per week in a portfolio like Beanstox Stocks 500. Over 40 years, assuming an 8% annualized return, you could end up with over $1.5 million**, thanks to the power of compounding. Meanwhile, most stock pickers would struggle to keep up, losing time, money, and peace of mind along the way.
Start Today
Stop worrying about beating the market. Join thousands of Beanstox clients who are building wealth in a seriously simple way with Beanstox. Easy and automated.
Ready to take control of your financial future? Start investing with Beanstox today.
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* One-click Investing refers solely to the one click that is needed to select Stocks 500, a Beanstox product that lets users invest in 500 of the largest companies in the U.S. with an ETF that aims to track the S&P 500 Index. In order to complete the investment, an approved account, active bank connection, and other actions are needed.
** This projection reflects a hypothetical example of compounding over time, based on a monthly investment of $100 and based on an assumed annual rate of return of 8%, compounded monthly, and assuming the funds stay invested throughout the investment period. Returns are hypothetical annualized returns. The projection is provided for illustrative purposes, and is not indicative of past performance of any Beanstox portfolio or any client’s experience using the Beanstox App. The hypothetical return does not reflect fees, or the cost associated with investing. Content is meant to provide education on the power of compound returns over time and is not intended to be taken as advice or a recommendation for any specific investment product or strategy.
Sources
1) https://www.spglobal.com/spdji/en/research-insights/spiva/
2) https://www.quantifiedstrategies.com/day-trading-statistics/
3) https://www.marketwatch.com/story/heres-one-more-reason-why-day-trading- and-market-timing-can-cost-you-8cdf776f?utm_source=chatgpt.com
4) Bloomber Finance LP as of September 30, 2024
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