The two investments I would buy with €1,000 if I were 25 today

Welcome to Financial Fluency - your monthly guide to mastering financial English, learning how money works, and making confident financial choices.

In this issue:

• A Look at the Markets: Performance April 2026

• The two investments I would buy with €1,000 if I were 25 today

• Quote of the Day: Warren Buffett

• We value your feedback

• Words of the Day: Accumulating and Distributing

• Interactive Quiz

• Whenever you are ready, here is how I can help you

A Look at the Markets: Performance April 2026

Please note that these figures are up to the 29th April and, in the case of Bitcoin, the afternoon of Thursday, 30th April. If there are any significant changes at the end of the month, I will update the figures in the online version of the newsletter next week.

Vanguard FTSE All-World ETF (Accumulating)

A very positive month for the Vanguard FTSE All-World ETF (Acc) with a gain of 6.21%. Please note this may reflect the slightly calming tensions in the Middle East, but investors should be cautious -- the Iran conflict may not be over.

iShares Core S&P 500 UCITS ETF (Accumulating)

An even better month for the iShares Core S&P 500 UCITS ETF (Acc) with a gain of 7.76%. The economy in the USA is less affected by the Iran conflict than countries in Europe, which are more dependent on imported energy. I should note that the USA has experienced an increase in gas prices (petrol in British English) and may be affected by inflation.

Vanguard EUR Corporate Bond ETF (Accumulating)

The Vanguard EUR Corporate Bond ETF finished fairly flat for April with a slight gain of 0.28%.

Bitcoin Monthly Performance $BTC ( ▲ 2.03% )  

Bitcoin had a better month in April, up 11.6%. This is positive, but nowhere near makes up for the five months of losses from October to February. As always, I look at the long-term picture.

The two investments I would buy with €1,000 if I were 25 today

Both did not exist in the UK when I was 25

I think young people in particular need a simple solution when it comes to protecting their financial future.

If I were starting today, I would only buy two investments. Neither of these were available to me when I was 25 and living in the United Kingdom. I had to look at investing in individual shares and take a greater level of risk.

Here is a simple investment strategy that young people can implement in minutes and get on with the rest of their lives.

Investment 1: A Global ETF

Young people who have no interest in researching individual companies can simply buy the whole market.

A global ETF is a basket of around 3,700 of the top companies in the world. Rather than betting on individual companies, investors are betting on the fact that the world's stock market will increase in value over time. My choice would be the Vanguard FTSE All-World ETF (accumulating), which automatically reinvests dividends back into the ETF. Accumulating ETFs are tax beneficial in many, though not all, countries, so it is worth doing your own research. Investors wanting slightly lower risk and marginally lower fees could consider a developed world ETF, which removes emerging markets.

For a 25-year-old with decades ahead, this single purchase can form the core of their investment portfolio.

Investment 2: Bitcoin

Bitcoin is not for everyone, and due to its relatively short history, it carries a higher level of risk than a global ETF.

Having said that, I think it is worth considering a small allocation for young people who can take the risk and invest for the long term. They could either buy Bitcoin from a crypto exchange (like Coinbase or Kraken) and store it in a cold wallet. This is known as direct ownership and is more technical and requires buying a wallet. An alternative and less technical option is to buy an ETP that tracks the Bitcoin price through a standard broker. This is slightly more expensive annually. My choice would be the cold wallet, but the ETP is a good option for people who are not particularly tech-savvy.

Due to the increased risk, only invest what you can afford to lose, and for some that may be zero. This is fine.

Asset Allocation

How you split the €1,000 is ultimately a personal decision and depends on risk tolerance.

For most people, I would consider between 5% and 10% in Bitcoin. This leaves 90% to 95% in the global ETF, which, as mentioned earlier, should form the core of your investment portfolio. I indicated that I had a relatively high risk tolerance when I was 25, so I would probably invest €900 in the global ETF and €100 in Bitcoin. For those who do not want to include the extra risk of Bitcoin, investing 100% in the ETF is completely valid.

For me, a 90/10 split would give a simple portfolio and allow me to sleep well at night whatever happened to prices in the short term.

Conclusion

This is a simple investment portfolio for the long term that does not need constant monitoring.

The ideal time to hold a stock is forever, as Warren Buffett believes. However, this strategy is designed for the long term -- if you think you may need the money within five years, this portfolio may not be suitable and I will address this in a future newsletter. Next month, we will look at what happens when you add a regular monthly investment to your initial €1,000.

Otherwise, set it up today and get on with your life.

As always, none of this is financial advice. Everyone should invest according to their personal circumstances, risk tolerance and financial goals.

Quote of the Day: Warren Buffett

This encapsulates the philosophy behind this newsletter. Warren Buffett tends to hold his investments for the long term and has this in mind when making investment decisions.

I should point out, for balance, that he is not a believer in Bitcoin or any cryptocurrencies.

We Value Your Feedback!

Your opinion helps us improve and lets you suggest topics or ask Business English questions for future issues.

Words of the Day: Accumulating and Distributing

Accumulating - adjective - describes a fund or ETF that automatically reinvests any income, such as dividends, back into the fund rather than paying it out to investors.

Distributing - adjective - describes a fund or ETF that pays out any income, such as dividends, directly to investors at regular intervals.

Context and Usage: When choosing an ETF, one of the most important decisions is whether to select an accumulating or distributing version. Both track exactly the same index and contain exactly the same companies - the only difference is what happens to the income generated by those companies. Accumulating funds reinvest that income automatically, whilst distributing funds pay it out as cash.

Note: In many European countries, accumulating ETFs are more tax-efficient for long-term investors because the reinvested income is not taxed until you sell. However, tax rules vary significantly by country, so always check your local regulations. In some countries, distributing ETFs may actually be more tax-efficient or even required for certain account types.

Common Collocations:

Accumulating ETF - a fund that reinvests income automatically The accumulating ETF version is generally preferred by younger investors focused on long-term growth rather than immediate income.

Distributing ETF - a fund that pays out income regularly Retirees often prefer a distributing ETF as it provides a regular cash income without needing to sell any shares.

Business Example: The pension fund selected the accumulating share class to maximise long-term growth, automatically reinvesting all dividend income back into the portfolio.

Practical Context: When searching for an ETF on your broker platform, you will often see two versions of the same fund listed side by side -- one marked "Acc" and one marked "Dist" or "Inc." For most young, long-term investors, the accumulating version is the natural choice, as it harnesses the full power of compounding without requiring any action on your part.

Interactive Quiz

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Disclaimer:

This newsletter is for informational and educational purposes only and should not be construed as financial advice. The information contained herein is generic and does not take into account your individual financial circumstances. You should always consult with a qualified financial professional before making any investment or financial decisions.

Additionally, the authors and/or publishers of this newsletter may hold investments in securities or other financial instruments mentioned herein. These are included for illustrative purposes only and should not be taken as a recommendation to buy or sell such securities or financial instruments.