Equity funds include general public funds and ETFs, and if you want to simply invest in the world, you need to choose a fund or ETF. Today I'm going to explain ETFs in particular. There are many types of topics on the market now, and basically all of the topics or regions you can think of are ETFs. Choosing an ETF is perfect for people who are busy at work and don't have time to research the stock market.
Next, I'll explain ETFs and their characteristics, and finally how to build your own financial freedom ETF plan.
Learn about ETFs
The English name of ETF is Exchange Traded Fund, also known as a transactional open index fund. They are different from ordinary public funds. The biggest difference is that the handling fee is lower than that of traditional funds (the management fee for traditional funds is 1-2%), but the trading method is the same as stocks, and trading can be carried out on stock software.
However, my investments include Chinese, Hong Kong, and US stocks. It seems that most ETF management fees for US stocks are around 0.2%, which is relatively cheap compared to ETF management fees in Hong Kong. Also, the handling fee for US stock trading is 0. It can be said that the most liquid market in the ETF world is the US.
Buying an ETF stock index fund is equivalent to buying all the investment targets in the index, such as the well-known US ETF QQQ, which tracks technology companies listed in the US, such as Microsoft, Apple, Google, etc. If you are optimistic about American technology companies, you can buy QQQ.
Advantages and Disadvantages of ETFs
An ETF is a type of fund that invests in...