What are the benefits of retail investors buying ETF funds?
1, which can be invested accurately.
Buying an ETF can accurately invest in a certain sector. For example, investors are more optimistic about the semiconductor sector, so they can buy semiconductor ETF funds directly; If investors are more optimistic about the computer sector, they can directly buy computer ETF funds. Can be targeted to buy.
2, the cost is low
Because the price of purchasing ETF is low, the investment cost of purchasing ETF is not high. And only need to pay the transaction commission, do not need to pay stamp duty and transfer fees. The handling fee is relatively simple, and you can also enjoy dividends.
Step 3 spread the risk
Buying ETF can also trade a basket of stocks and multiple funds, which can better spread investment risks and benefit investors. Moreover, ETF can realize global diversification, without opening a certain stock account separately, and users can directly complete global market investment to diversify risks through ETF, which also reduces the risk of single shareholding.
What are the risks of buying an ETF?
1, fluctuation risk
ETF also invests in a basket of stocks, but stocks will go up and down, ETF will fluctuate, and accounts will make profits or losses. Therefore, investing in ETFs should always be prepared to face losses and make long-term plans.
2. Economic risks
The ETF index does not always rise. People often say that buying an index means buying national wealth, and the long-term rise is also based on the development of the national economy. If the economy is depressed, it may lead to losses.
3. High purchase risk
If you buy at a high market level, you may lose money for a long time. If we want to avoid this problem, we need to evaluate the ETF to be invested and underestimate the purchase.