IG vs Live Which Is a Smarter Choice?

IG and live stocks are two popular methods for trading in the stock market. IG, or "index funds", allow investors to buy a diversified portfolio of stocks that track the performance of a specific index such as the S&P 500. Live stocks, on the other hand, involve buying and selling individual company shares in real-time on the stock market. Both methods offer opportunities for investors to potentially profit from market fluctuations, but each comes with its own set of risks and benefits. In this comparison, we will explore the differences between IG and live stocks to help you determine which option may be better suited to your investment goals.

IG or Live?

When comparing IG and Live, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between IG and Live.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. IG has a dividend yield of 4.78%, while Live has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IG reports a 5-year dividend growth of 0.91% year and a payout ratio of 31.14%. On the other hand, Live reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with IG P/E ratio at 6.43 and Live's P/E ratio at -0.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IG P/B ratio is 1.95 while Live's P/B ratio is 2.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IG has seen a 5-year revenue growth of 0.85%, while Live's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and Live's ROE at -339.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £960.00 for IG and £0.30 for Live. Over the past year, IG's prices ranged from £671.00 to £995.25, with a yearly change of 48.32%. Live's prices fluctuated between £0.30 and £2.05, with a yearly change of 583.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.