2022 is coming to an end, have you saved money?
There is never enough money to spend, and there is never enough money to save. I am afraid this is the status quo of many people in the workplace. The more they are in the economic fluctuation cycle, the more ordinary people need to achieve wealth accumulation. Is
financial management the road to wealth freedom for ordinary office workers?
Similar questions were once asked Buffett : If he was an office worker with a low salary, what investment product would he choose?
Buffett replied that he would choose the Standard & Poor's 500ETF fund and continue to work hard.
Buffett recommended index funds more than once. He said that through regular investment in index funds, an amateur investor who knows nothing can beat most professional investors.
From his words, we can see that index funds are not only suitable for ordinary investors, but also very suitable for ordinary investors.
What is the ETF fund favored by Warren Buffett? Should novice investors buy ETF?
One, ordinary people are getting more and more popular through ETF financial management
What is ETF?
ETF (Exchange Traded Funds) refers to trading open-end index fund .
"Trading type" means that ETF funds can be bought and sold like stocks , which we usually refer to as on-market purchases; while "open-ended" simply means that investors can apply for or redeem fund shares from fund management companies, that is, on-market purchases. External application for redemption.
We use the hot chip ETF in the past two years as an example to illustrate what is an ETF? It is not easy for novices to start investing in the required sectors.
According to the current stock prices of Ziguang Guowei, Zhaoyi Innovation, and SMIC, if you buy all the optimistic chip stocks, there is no one that cannot be bought for tens of thousands of yuan. However, the first-hand price of China Securities Chip ETF (012552) is only a few hundred yuan, and the investment starting point is relatively low.
That is to say, if you buy a chip ETF, you can buy promising stocks in the chip industry.
At present, the domestic ETF market has already entered the fast lane of development, and the product scale, number of products and number of holders have all increased sharply.
According to the statistics of WIND, as of September 30, 2022, the scale of domestic ETFs has reached 1.55 trillion, accounting for 5.7% of the net value of all funds. In terms of the number of products, the number of domestic ETFs has increased year by year since 2004. It took only 10 years from the first ETF listing to breaking through 100 for the first time. As of September 30, 2022, the number of ETFs has reached 742.
From the perspective of holding scale, ETF is also one of the important configurations of institutions.
According to data from the Shanghai Stock Exchange, the total market value of Shanghai ETFs held by individual investors is 96.009 billion yuan, and that held by institutional investors is 370.177 billion yuan.
The large number of individual investors and the largest holdings of institutional investors all show that investors are enthusiastic about investing in ETFs.
2 Why do you choose ETF for financial management?
Make good use of investment tools to achieve twice the result with half the effort.
Everyone chooses ETF as an investment tool for financial management, which is inseparable from the "three provinces" advantages of ETF, "saving worry, saving time, and saving money".
First, ETF funds are very worry-free.
For example, when you go to a certain restaurant for the first time, you will be very entangled in looking at the menu when ordering, and it will be difficult to choose from hundreds of dishes. At this time, the waiter said: "We have a set menu, cold dishes , hard dishes, small stir-fries, soups, and staple foods are all available, and they are all good specialties sold in our store.” Maybe you won’t be entangled right away. The
ETF is like a package, currentlyA shares There are nearly 4,500 stocks, stock selection is difficult, but buying an ETF is equivalent to buying all the stocks in the corresponding index, just like "choosing a package" is more worry-free and convenient.
ETF can also diversify risks. For example, CSI 300 and CSI 500 follow the changes of the index. When the index rises, the ETF will rise. Don’t worry about individual stocks rising or falling too much. The trend is fine.
If you are optimistic about the Chinese economy and want to share more dividends of A shares , you can directly buy long-term broad-based indexes such as CSI 300 and CSI 500 to share stock dividends; if you are optimistic about the development prospects of industries such as chips, photovoltaics, biomedicine, , Direct purchase of ETFs in this industry can also share the growth dividend of the entire industry sector.
and ETF are passive funds , the net value of the fund is updated in real time, and the composition of the portfolio is open and transparent. We can see which stocks we bought, the proportion of ’s position, and . It is not affected by the fund manager, so there is no need to go to Pick a fund manager. The
- ETF is a time saver.
Ordinary investors don’t have a lot of time to watch the market , study market trends, and don’t have time to learn professional financial knowledge. What they want more is “fragmented” financial management, and it’s very convenient to buy and sell . Because
ETF is tracking the index, it automatically ranks the stocks in the sample space according to the average daily transaction value of A shares in the past year from high to low. It does not need to spend time researching individual stocks. It is very suitable for "fragmented" financial management without time ordinary people.
At the same time, ETFs can be sold directly during stock trading hours without waiting for the market to close, and compared with ordinary open-end funds, often takes 4-7 working days for the funds to arrive in the account, and ETFs in the secondary market After selling, the funds are available on the same day and can be withdrawn the next day, just like stocks.
Whether it is decision-making, buying and selling, or recovering funds, ETFs are "time-saving".
Third, ETF funds save money. First of all,
ETF saves money because the management fee is relatively low, generally 0.5%, and the custody fee rate is around 0.1%, which is generally lower than that of OTC funds, usually 1/2 to 1/3 of ordinary stock funds.
The second is low transaction costs. There is no subscription and redemption fee for buying and selling ETF shares in the secondary market. Instead, it pays commissions to brokerage like buying stocks, and there is no stamp duty. The
ETF saves money because the investment threshold is low, and the minimum investment is 100 shares just like stocks. If the net value of the fund is 1 yuan, it means that 100 yuan can be invested in ETF funds.
In addition, many people are afraid of stepping on thunder when they invest. In case of accidental stock selection, they will be hit by a continuous drop limit. ETF is an index fund traded on the floor. It is a combination of a basket of stocks, which greatly reduces the risk of individual stocks stepping on thunder .
ETFs save money anyway.
3. Financial management will become a basic life skill
For most people, they should start managing their money if they can save money.
Financial management is an essential life skill in the future society. When to start financial management is related to one's own cognition and has nothing to do with the amount of money. When your wealth management income exceeds your salary income, your life will truly pass the inflection point between rich and poor. After all, salary income will disappear once you do not work, but financial income will not.
But how should the average investor get involved? What does not match the ever-increasing allocation needs is that many people who want to manage money still don't know much about ETFs, and they don't even know the formal investment channels.
Based on this, recently Ping An Securities joined forces with Tianhong Fund and other fund companies to launch the "Ping An Securities ETF Real Offer Competition", aiming to popularize ETFs to investors through the investment education and experience of ETF investment categories in the event Basic knowledge, through entertaining, lively and interesting activities, to improve investors' ETF practical operation ability.
During the nearly 2-month competition period, participants can choose different ETFs as their own holdingsTarget, and through strategic investment, regularly compare according to the comprehensive return rate of ETF funds held by individuals, and get different rewards according to the ranking of the weekly list and the overall list.
's immersive experience + professional companionship is an excellent opportunity for beginners to gain a deeper understanding of ETF financial management.
According to relevant news, the Ping An Securities ETF Firm Offer Contest is now in full swing and will officially start on December 1. The deadline for registration is January 14, 2023, and the competition will continue until January 20, 2023.
Participants can search for [ETF Competition] through the Ping An Securities app to sign up.
Risk Reminder: There are risks in the market, investment needs to be cautious. Index funds have tracking errors. Please read the legal documents of the product carefully before purchasing the fund, and choose the product that suits you according to your own risk tolerance.
