2022 is almost over. Have you saved the money?
money will never be enough to spend, and money will never be saved. I am afraid it is the current situation of many people in the workplace. The more you are in an economic fluctuation cycle, the more ordinary people need to accumulate wealth.
Is financial management the road to financial freedom for ordinary office workers?
Similar questions have been asked by someone once Buffett : If he were an office worker with a low salary, what kind of investment products would he choose?
Buffett answered that he would choose S&P 500 ETF fund and then continue to work hard.
Buffett has recommended index funds more than once. He said that through fixed investment in index funds, an amateur investor who knows nothing can defeat most professional investors.
From his words, it can be seen that index funds are not only suitable for ordinary investors, but also very suitable for ordinary investors.
What is the ETF fund favored by the stock god Buffett? Should novices buy ETF when investing?
1 Ordinary people are becoming more and more popular through ETF financial management
What exactly 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 call on on-market purchases; and "open" simply means that investors can subscribe or redeem fund shares from fund management companies, that is, off-market redemption.
Let’s use the popular chip ETFs in the past two years to illustrate what exactly is an ETF?
Under the many motivations of domestic substitution demand and industrial policy support, the stock price of the chip sector stock has been positive for the long term, but it is not easy for newbies to invest in the chip sector such as high professional requirements.
According to the current stock prices of Unigroup Guowei, Zhaoyi Innovation and SMIC, if you buy all the optimistic chip stocks, you will not be able to get it if you don’t have tens of thousands of yuan. However, the price of buying CSI Chip ETF (012552) is only a few hundred yuan, and the investment starting point is relatively low.
In other words, by buying chip ETFs, you can buy stocks in the chip industry that are optimistic about.
At present, the domestic ETF market has long entered the fast lane of development, and the product scale, product number and number of holders have all increased sharply.
According to WIND data statistics, as of September 30, 2022, the scale of domestic ETFs has reached 1.55 trillion yuan, accounting for 5.7% of the net value of all funds. In terms of product quantity level of
, the number of domestic ETFs has increased year by year since 2004. It took only 10 years from the launch of the first ETF to the first breakthrough of 100. As of September 30, 2022, the number of ETFs has reached 742. In terms of holding scale of
products, ETFs are also one of the important configurations of institutions.
According to , the total market value of individual investors holding Shanghai Stock Exchange ETFs is 96.09 billion yuan, and institutional investors hold 370.177 billion yuan.
There are many individual investors and the largest holding scale of institutional investors, which all indicate that investors are enthusiastic about investing in ETFs.
2 Why do people choose ETFs for financial management?
Make good use of investment tools and investing twice the result with half the effort.
Everyone’s financial management first chooses ETF as an investment tool, which is inseparable from the “three-show” advantages of ETFs, “saving worry, saving time and saving money.”
First, ETF funds are very worry-free.
For example, when you go to a restaurant for the first time, you will be very confused when you read the menu when ordering. It will be difficult to choose from among hundreds of dishes. At this time, the waiter said: "We have a set meal, including cold dishes, hard dishes, stir-fried soups, and staple foods, and they are all good specialties sold by our store." Maybe you will not be confused immediately.
ETF is like a package. Currently, there are nearly 4,500 stocks in A shares. It is difficult to select in , but buying 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, the Shanghai and Shenzhen 300 and CSI 500 follow the changes in the index. When the index rises, the ETF will rise. Don’t worry about the rise and fall of individual stocks being too large and the heart can’t stand it. If you accidentally step on the mine stocks, just grasp the big trend.
If you are optimistic about the Chinese economy and want to share more of the A-share dividend , you can directly purchase broad-based indexes such as the Shanghai and Shenzhen 300 and CSI 500 for a long time to share the dividends of the stock market; if you are optimistic about the development prospects of industries such as chips, photovoltaics, and biomedical , directly purchase ETFs of the industry, and also share the growth dividends of the entire industry sector.
and ETF are passive fund . The net value of the fund is updated in real time, the combination components are open and transparent, which stocks are bought, and the proportion of in positions. We can all see that it is not affected by the fund manager, so there is no need to choose a fund manager again.
- ETF funds are time-saving.
For ordinary investors, they don’t have a lot of time to watch the market in , study the market trend, and don’t have time to learn professional financial management knowledge. What they hope is “fragmented” financial management, and it is very convenient to buy and sell. Because
ETF is a tracking index, it automatically ranks stocks in the sample space from high to low according to the average daily transaction amount of A-shares in the past year. There is no need to spend time studying single stocks. It is very suitable for ordinary people who do not have time to "fragmented" financial management.
At the same time, ETFs can be sold directly during the stock trading period without waiting for the closing. Moreover, compared with ordinary open-end fund , it often takes 4-7 working days for funds to arrive. After the ETF is sold in the secondary market, the funds are available on the same day and can be taken out the next day, exactly the same as stocks.
Whether it is decision-making, buying and selling, or recycling funds, ETFs are very "time-saving".
Third, ETF funds are very cost-effective.
ETF saves money first, the management fee is relatively low, generally at 0.5%, and the custody fee rate is around 0.1%, which is generally lower than that of over-the-counter funds, usually 1/2 to 1/3 of ordinary stock funds.
is the second reason that the transaction cost is low. If you buy and sell ETF shares in the secondary market, there is no subscription and redemption fee. Instead, you pay a commission to broker like buying stocks, and there is no stamp duty.
ETF saves money because the investment threshold is low, and it starts at 100 shares like stocks. If the net value of the fund is 1 yuan, it means that you can invest in ETF funds with 100 yuan.
In addition, many people are afraid of stepping on the mine if they choose stocks. If they accidentally step on the mine, they will fall to the limit of for consecutive . ETF is an index fund that trades on the on-site trading. It is a combination of a basket of stocks, greatly reducing the risk of individual stocks stepping on the mine.
No matter what, ETFs are very cost-effective.
3 Financial management will become a basic life skill
For most people, if they can save money, they should start financial management.
Financial management is a necessary life skill in the future society. When to start financial management is related to one's own cognition, it has nothing to do with the amount of money. Only when your financial income exceeds your salary income can your life truly overcome the turning point between poverty and wealth. After all, wage income will disappear once you don’t work, but financial income will not.
But how should ordinary investors participate? What is inconsistent with the increasing allocation needs is that many people who want to manage their finances still don’t know much about ETFs, and they even don’t know the formal investment path.
Based on this, recently, Ping An Securities and Tianhong Fund and many other fund companies launched the "Ping An Securities ETF Real-Transaction Competition", aiming to popularize investors' basic knowledge of ETFs through investment education and experience of ETF investment categories during the event, and improve investors' practical operation capabilities of ETFs through educational and entertaining, vivid and interesting activities.
In the past two months of the competition, participants can choose different ETFs as their holdings targets, and through strategic investment, they regularly compete according to the comprehensive yield of the ETF funds held by their personal holdings, and receive different rewards based on the rankings of the weekly and total lists.
immersive experience + professional companionship is an excellent opportunity for new investors to understand ETF financial management in depth.
According to relevant news, the Ping An Securities ETF real-time competition is being registered and officially started on December 1st. The registration time is until January 14, 2023, and the competition will last until January 20, 2023.
contestants can register through the Ping An Securities app search [ETF Competition].
Risk warning: The market is risky, so be cautious when investing.There is a tracking error in index funds. Please read the product legal documents carefully before purchasing the fund and choose a product that suits you based on your own risk tolerance.
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