79% of Active Funds Lost to the S&P 500 in 2025 I Stocks Vs ETFs in 2026

Most beginners are told to pick a side: index funds or individual stocks. This video shows a simpler way to think about it — a diversified, low-cost index foundation first, and a smaller, optional layer of individual businesses on top, only if you genuinely enjoy the research. We look at why beating the market consistently is so hard (79% of active large-cap U.S. equity funds underperformed the S&P 500 in 2025, according to the SPIVA scorecard from S&P Dow Jones Indices), what an index fund actually is, what a 0.03% expense ratio costs in real money, and what the word "quality" should mean before you buy a single share. This is Part 1. Part 2 covers balancing the two layers in practice — position sizing, the three guardrails, and rebalancing. ⏱️ Chapters 0:00 The question everyone asks 0:12 Three people, three different answers 0:36 What we're actually building 0:58 No portfolio can promise constant growth 1:27 Layer One — the foundation 1:43 Why beating the market is hard 2:01 79% underperformed the index in 2025 2:19 Company-specific risk 2:52 A strong company can still fall a long way 3:21 What an index fund actually is 3:47 What 0.03% costs you 4:15 Why layer one works 4:42 The fee is taken every year 5:18 Index funds are not risk-free 5:36 Layer Two — individual businesses 5:54 What "quality" actually means 6:06 Microsoft, Visa, Costco 6:39 Seven questions before you buy 7:13 Guardrails, rebalancing and the recap 📊 Sources for every figure are on screen and listed in the pinned comment. 🔗 Research the second layer at https://www.thestocksschool.com/ This content is for educational and informational purposes only and does not provide investment advice or recommendations. Investing involves risk, including the possible loss of principal. #investing #indexfunds #stockmarket #personalfinance #etf