How To Keep & Grow Your Money #37

In this letter, we analyze the iShares S&P 500 Growth ETF (IVW).

Ticker: IVW | Price: $109.51 | Gross Expense Ratio: 0.18% | Assets Under Management (AUM): $60.3 B | 10‑Year Average Annual Return: 14.82% (as of May 31, 2025)

What is it (short)?

The iShares S&P 500 Growth ETF (IVW) offers investors exposure to large‑cap U.S. companies within the S&P 500 that exhibit strong growth potential, such as high earnings or sales momentum.

What is it (long)?

IVW aims to mirror the S&P 500 Growth Index, which selects around 211 U.S. large‑cap stocks based on metrics like earnings and revenue growth, and price momentum. Top holdings include tech giants like NVIDIA (11.2%), Apple (6.5%), Microsoft (6.1%), and Meta (5.3%). The ETF is passively managed with a full-replication approach, keeping costs low and targeting efficient tracking of the growth index.

Our thoughts:

IVW is ideal for investors seeking to ride the long-term growth of major U.S. corporations. Its diversified portfolio across high-growth sectors like technology, communication services, and consumer discretionary helps manage the risk.
The fund’s sturdy 10-year annual return (~13.8%) outpaced the broader market, showing strength in its focused strategy.

Bottom line:

IVW provides a low-cost, diversified way to gain targeted exposure to America's leading growth companies. It's best suited for investors with a growth-oriented mindset and patience for market ups and downs.

Do your own research and if you would like to take our free course to learn how to invest into ETFs and Index Funds at Index Institution™ go here.

How to Move Money, Gain Residency, Skip Hassles

When most people think about second residencies, they picture real estate or expensive donations.

But there’s a quieter route that’s gaining traction with high-net-worth individuals: residency by bank deposit.

It’s simple: park your money in a local bank for a set time—get a long-term visa or residency in return. No need to manage tenants, buy property in an overheated market, or donate to a government fund.

Here are some of the most interesting options right now:

🔹 UAE – Deposit around $545,000 and get a 10-year Golden Visa. No income tax. No minimum stay requirement. And you can renew it as long as the deposit remains.

🔹 Greece – A €500,000 term deposit unlocks a renewable 5-year EU residency with full Schengen access—no need to purchase property.

🔹 Latvia – Place €280,000 in subordinate debt at a Latvian bank for a 5-year permit. One of the most affordable financial-entry routes into Europe.

🔹 Panama – Deposit $200,000 in a local bank as a Friendly Nations national and gain temporary residency. Deposit $750,000 and qualify for permanent status.

🔹 Indonesia – Their new Second Home Visa allows you to park roughly $129,000 in a local account for 5–10 years of residence, with no living requirement.

🔹 Ecuador – Just $45,000 in a certificate of deposit gets you in. Residency is renewable and low-maintenance.

For anyone with liquidity and no Plan B yet, these are strategic options—not just pieces of paper. They offer geographic diversification, tax flexibility, and a legal foothold in regions that are quietly welcoming capital.

This is wealth protection without the real estate headaches.

If you would like to explore legally paying less taxes and maximizing your freedom check out Global Optimizer™ or click here.

Financial Concept to Learn in This Edition: Spread

What Is a Spread and Why Does It Matter in Investing?

Definition:
A spread in finance refers to the difference between two prices or rates, most commonly the gap between what buyers are willing to pay (bid) and what sellers will accept (ask). This difference—known as the bid-ask spread—is a key feature in trading. A narrower spread generally indicates a more liquid market, while a wider spread means higher costs and lower liquidity.

Key Types of Spreads You’ll Encounter:

• Bid‑Ask Spread:
  The ask price is what sellers want; the bid price is what buyers are willing to pay. The difference is a hidden fee that traders pay when executing orders. Tight spreads = lower costs and better liquidity; wide spreads = the opposite.

• Yield Spread (Credit Spread):
  This is the gap in yields between two bonds—often a corporate bond versus a similar U.S. Treasury. A wider spread suggests higher perceived risk and higher income potential. Monitoring spread changes helps investors gauge economic sentiment and bond market risk.

Why Investors Should Care:

Key Takeaways for Investors:

• Watch Trading Costs: Even small bid‑ask spreads can significantly eat into returns, especially on large or frequent trades. Use limit orders to avoid paying the spread unnecessarily.

• Gauge Market Health: Rising yield spreads often mean increasing risk perceptions, while narrowing spreads suggest stability and optimism.

• Match Strategy with Liquidity: Choose low‑spread, high‑liquidity assets for efficient trading—especially if you need to enter or exit positions quickly.

In short, spreads are more than just numbers—they’re real indicators of cost, risk, and market sentiment. Paying attention to them helps you trade smarter, manage risk better, and make more informed investment decisions.

To learn more about Spreads read more on Investopedia here or learn more from our full FREE investing course & community here.