S+P 500 (Vanguard)

belp44

Hi there- Does anyone have any advice about the S+P 500 (Vanguard) 14.26 5yr AAR or have already signed up. It has been offered to me via my Chip account- I am a newbie to investing so don't know very much at all but would like to grow my money rather than it sitting in 1 or 2% interest bank accounts. Any advice or comments would be much appreciated. Thank you.

jimjames

I've seen some of the investments promoted via Chip and I think they are highly misleading and quite dangerous for novice investors. I definitely wouldn't be putting all my money into that unless I had a very high tolerance for risk and the investments going down a lot as well as up.

If you're getting 1% or 2% in bank accounts you can do way better than that without investing and get over 4% quite easily.

wmb194

https://forums.moneysavingexpert.com/discussion/6659495/s-p-500-vanguard

https://moneyfactscompare.co.uk/savings-accounts/

EthicsGradient

What does "14.26 5yr AAR" mean? 14.26 seems a strangely precise number, and yet is not a date. "AAR"="Annual Average Return"?? Is Chip advertising a Vanguard ETF by saying it has had 14.26% average annual return over 5 years? If so, that is rather misleading - right now, that's counting from the bottom of the Covid drop, and "past performance is not a guide to future returns" has never been truer.

jimjames

https://forums.moneysavingexpert.com/discussion/comment/81921737#Comment_81921737

Yes that is exactly what Chip are advertising hence my previous post about being misleading. To top it all they also have the Space Innovators fund that offer 44.67% 5yr AAR or S&P Tech for 22.79% 5yr AAR. What could possibly go wrong! No mention of past performance not being a guide or any other warning unless you scroll all the way to the bottom of the screen but you don't need to do that to click the Invest button.

For an inexperienced investor these sorts of numbers and presentation is ripe for inappropriate investing.