April 2025 update ($1,019,923 +$12,505 or +1.2%)

↑ Eurozone Stock Index Fund is up by $361 or +0.2%

↑ Global Small Cap is up by $1,108 or +0.7%

↑ Growth fund is up by $173 or +0.2%

↑ EUR is up to USD by 4.6% or $15,214 for my portfolio

↑ GBP is up to USD by 2.3% or $1,902 for my portfolio

↑ Additional investment savings $2,500

Total gains: $18,758

 

↓ Emerging Markets Stock Index Fund is down by $5,725 or -3.9%

↓ US 500 Stock Index Fund is down by $3,027 or -0.7%

↓ Growth fund is down by $5,100 or -6.0%

Total losses: $8,752

 

Observations:

I used a bit volatility in the markets and invest about $12K in child’s tax-free account This is annual maximum and these investments aren’t subject to income or capital gains taxes. I placed my order before the market opening for fund which mean to track S&P500 closely.  I was expected to receive a next available price; however, the unit price would correspond to the highest price of the day (for S&P500).

 It arose my curiosity and I checked at random some of the past actual transactions with the fund.  What I have realized is whether S&P500 going up or down, the Fund holders don’t see the benefit.  Delta between S&P500 and the Fund as high as 3.57 percent and sometimes moves into the opposite to market direction.

Here are some specific examples:

Example 1 – Highest price of the day.

 Fund invested money on April 8^th. The instruction received prior market opening.

Market closing value	April 7th highest	April 7th closing	April 8th - highest	April 8th closing	April 9th highest	April 9th closing
S&P500	5,162	5,059	5,259	4,924	5,470	5,470
Difference			1.88%		4.01%
Fund		413.24		430.77		413.50
Difference				4.24%		4.24%

 Price per unit on April 7^th and April 9^th is almost the same but doesn’t correlate to the highest or market closing price.  Additionally, while S&P500 moved from April 7^th to the highest on April 8^th by 1.88%, Fund moved the price by 4.24%.

For the trade executed on April 8^th and order place before the market opening its reasonable to assume that the purchase price would be nearer April 7^th closing or follow the logic “somewhere in between”, rather than highest of the day.

 Example 2 – Highest price of the day when the market was going down all day.

 Market closing value

	March 10th highest	March 10th closing	March 11th highest	March 11th closing	March 12th highest	March 12th closing
S&P500	2,882	2,882	2,825	2,741	2,660	2,480
Difference			-1.98%	-4.98%	-5.84%	-9.5%
Fund		219.16		218.07		205.14
Difference				-0.5%		-5.93%

 With transaction placed prior market opening the purchased unit price represents almost highest S&P500 value of the day, while the market was going down.

Example 3.  – The market was falling but the Fund went up in price.

 Market closing value

	Nov 26th highest	Nov 26th closing	Nov 27th highest	Nov 27th closing	Nov 29th highest	Nov 29th closing
S&P500	6,025.42	6,021.63	6,020.16	5,998.74	6,044.17	6,023.38
Difference			-0.09%	-0.38%	0.40%	0.41%
Fund		506.69		508.51		503.26
Difference				0.36%		-1.03%

With transaction #6 has been place before market opening and S&P500 market falling all day, it’s reasonable to assume that unit purchase price will be less or equal prior day. However, Fund purchase price went up.

I consider myself lucky to be able to do it for the kids, as not everybody has this opportunity. However, I can now have few glimpses how the financial services industry always wins with very little to no risk.

 Fun Fact: A lot of financial outlets and legacy media outlets in the USA actively engaging in politics, by pushing Americans to claim social security early. The narrative is that they need to be afraid that benefits will be cut.  Social security in the USA is pay as you go and claiming it early will worsen the budget.