Hey
Just a bit of a theoretical and just for a bit of fun.
If someone bought 1x every asset available on fteetrade would they
- would they?
- Beat the market
- not beat the market
- approximately be neutral
0 voters
Good question.
Im sure that profit or loss would vary by year…but to answer your question, if you effectively buy all of the market (well the majority of it) I dont imagine you can beat it.
To beat it would require a narrowing of focus and picking bigger winners.
Makes you think about just how much you should diversify…I think diversifying is important, but mostly overdone.
Slow news day today so I took the Freetrade Universe and where available compared the price on 13/09/2022 to 13/09/2023.
Very basic analysis of these 5731 entries : ( no allowance for currency variations / stock splits etc ): If you spent £1 on each share in 2022 you would have had £5576 a year later ( -2.7%)
For comparison in the same timescale :
VWRP +4.47%
VUSA +3.62%
IWDG +10.2%
ETA : Taking into account the exchange rates for each day buying one of each share would have cost £218,646 in 2022 and been valued at £214,718 in 2023.
4 Likes
Thats some impressive calculations 
Interesting results. Thanks for sharing 
1 Like
That is interesting, I wonder what difference dividends would make to the -2.7% figure.