Alpesh B Patel OBEManaging Partner (UK), RootBridge Capital · Asset Management. Great Investments Programme. 18 Books, Bloomberg TV alum & FT Columnist, BBC Paper Reviewer; Fmr Visiting Fellow, Oxford Uni. Multi-TEDx. UK Govt Dealmaker. alpeshpatel.com/links Pro

ETFs: Your Smart Start to Investing & Managing Risk #shorts

21 Jun 2026 · 1 min

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1:14

In this short conversational clip, Alpesh B Patel OBE and a co‑speaker discuss how exchange‑traded funds (ETFs) serve as a low‑risk entry point for investors. They compare using the S&P 500 versus the NASDAQ as a performance benchmark, noting that the S&P historically averages about a 12 % annual return. Patel argues that choosing the NASDAQ or applying 2× leverage to the S&P makes it easier to claim outperformance. The discussion then shifts to risk‑averse strategies, recommending the S&P 500 as a core benchmark and highlighting its long‑term growth record—approximately doubling every five years over the past 15 years. The speakers stress that past performance is not a guarantee but present broad index exposure as a starting point for investors.

Aside from that, is it index trackers? If they can't be on the Great Investments program and get that personal education, is it ETFs?
Well, of course, that's a very good place to start, ETFs, because that pretty much limits risk in any case, participating in that. One of the things when I do speak to clients is that if the core in our benchmark, which is the S&P, has gone up on average around that 12%, right?
Well, I don't know. I want to make our benchmark the NASDAQ because people often say to me, did you beat the S&P? And it's like, it's really easy. You just have more of the NASDAQ, or we have our little approach where We'll have 2x leverage S&P then. Fine. You can easily beat the S&P on a rising moving average of the prices. Simple.
Done. You're asking about how to manage risk then. For those who are a bit more risk averse out there, I would say, look, your benchmark should be the S&P, the 500 top companies in the US.
Which by the way, over the last, what is it, 15 years would double your money every 5 years. That rate of growth is what it's done. That's just an index. That means quarter of a million becomes half a million in 5 years, becomes a million in 10 years, becomes 2 million in 15 years. Past performance is not a guarantee of future performance. Obviously, but we're just giving indicative, even broad indices as a starting point.
Well, that—