Here’s how this works…
Each week we’ll introduce you to one new investing term that you’ll need to know if you want to start investing.
Then we’ll provide a summary of the past week’s financial news and explain why it’s relevant to you as a beginner investor and, more importantly, how you can use this knowledge to your advantage.
So, let’s get cracking!
TERM TO LEARN
AN INDEX FUND IS A TYPE OF INVESTMENT THAT AIMS TO TRACK AND MIMIC THE PERFORMANCE OF A SPECIFIC MARKET INDEX, SUCH AS THE S&P 500 OR FTSE 100.
Index funds use a passive strategy, meaning they don't try to beat the market but instead aim to match its performance.
By investing in an index fund, you gain exposure to a broad range of companies or assets within that index, spreading your risk across multiple investments.
Because index funds don't require active management, they typically have lower fees compared to actively managed funds.
INVESTMENT NEWS FOR BEGINNERS
Tis the season(ality).
Seasonality - a regular pattern where certain times of the year affect things in different ways. For the beginner investor, this means predictable, repeated patterns each year, which influence shopping habits, company profits and even economic growth. Understanding these patterns helps investors (beginner or otherwise) avoid confusion, use trends wisely and, make smarter decisions about buying, selling or holding investments.
Why this matters to you…
When looking at the economy (GDP, consumer spending etc), numbers often go up or down with the seasons. Experts use something called "seasonal adjustment" to make data more accurate when comparing across different months or quarters.
If you don't know about seasonality, you might not misunderstand a stock's performance—for example, panicking during the slow season or getting too excited during a busy one.
What you need to do…
Some stocks or industries do well every winter or summer season. If you see this pattern repeated yearly, you can plan your investments with more confidence.
If you read about economic growth or company earnings, check if the numbers have been 'seasonally adjusted' for clearer comparisons.
UK investors finally get tax-free crypto access via ISAs and pensions.
From 8th October 2025, UK investors can hold crypto-related investments called Exchange-Traded Notes (ETNs) inside their tax-advantaged ISAs and pensions. This means that any profits made from these crypto investments in ISAs or pensions will be completely tax-free. Unlike direct crypto ownership, which can incur Capital Gains Tax.
Why this matters to you…
Regulated crypto ETNs avoid problems linked with unregulated offshore platforms or risky leveraged products.
Investors can now buy these crypto ETNs via familiar brokerage accounts using their existing ISA and pension allowances.
What you need to do…
Before investing in crypto ETNs, make sure you understand the volatility and that these products do not have deposit protection.
The FCA advises limiting crypto exposure to 10% of your portfolio, helping protect beginner investors from potentially large losses.
Only buy crypto ETNs through FCA-approved brokers to avoid risky offshore or unregulated platforms.
Could the FTSE 100 hit 10,000 by Christmas?
The FTSE 100 has advanced steadily this year, driven by sectors like mining, banks, defense, drinks, and tobacco, which offer strong balance sheets, pricing power, and reliable cash flow. It offers the richest dividend yield among developed markets, appealing to income-focused investors amid sticky inflation and uncertain growth, and its valuation is modest at around 14.3 times earnings, notably lower than the S&P 500's 22.6, making UK equities attractive for diversification away from more volatile US tech stocks.
Why this matters to you…
A rising FTSE 100 means the UK stock market is generally doing well, which might increase the value of investments linked to UK shares.
Higher stock values can improve the value of personal investment portfolios, including pensions and ISAs that hold UK stocks.
Understanding market trends like this helps you see where growth and income (dividends) opportunities might be.
What you need to do…
Pay attention to geopolitical events and currency changes (like the British pound) as they can directly affect UK stocks.
Consider UK stocks, as they may offer safer or more attractive opportunities right now because of geopolitical and economic factors.
ONE LAST THING...
What even is the S&P 500?
If you are new to investing, there is one name you’ll hear again and again - the S&P 500.
You may or may not know already that the S&P 500 is often used as a "thermometer" for how healthy the US economy is, because it tracks 500 of the biggest and most successful companies. If the S&P 500 goes up, it usually means big companies are doing well, which can affect the wider economy.
But did you know how it came to be and how it makes money?
Nerd out here 👊
Thanks for reading this fifth edition.
I apologise for the early reference to Christmas - in October.
But, in our defence, we did also bring you some pretty exciting news about crypto ETNs - if such things, ‘float your boat’.
Join us again next week, when we promise not to mention the ‘C’ word………Christmas I mean, not crypto. We may mention crypto - who knows what the next 7 days will bring?!