As long as investment and financial management are risky, and risks are often associated with returns, high returns are generally accompanied by high risks. Today I mainly study ETF funds. What are the risks of buying an ETF? What are the precautions? The following small series analyzes the risks of buying ETFs for everyone:
Which is better to buy ETF index funds or stocks?
ETF and stock have their own characteristics. For different people, you can make a comprehensive configuration, especially in some aspects, each variety has its own characteristics. For broad-based ETFs, such as CSI 300 and CSI 500, their own industries involve a lot, which is equivalent to a relatively broad investment. The characteristic of this kind of investment is that the index tracked in theory is relatively stable, which is basically more stable than ordinary people operating stocks. Therefore, Montana often advises some investors. If you don't know which stocks to invest in, you can generally invest in some broad-based ETFs. In this way, if the index goes up, you can also reap the basic income, so you won't always make money when you earn the index, but when the index goes down, the loss is certain, so for the average person, broad-based ETF is a very good investment method.
In addition to broad-based ETFs, ETFs with various industry themes are more eye-catching this year. For example, in the first half of the year, ETFs in medicine and chips were the most gratifying. What you need to pay attention to here is that this kind of theme ETF can indeed get a relatively large increase at a certain stage, because at this stage, this industry sector is the most favored by funds, so this kind of ETF naturally has a considerable increase. But in our stock market, the most common thing is plate rotation, which is the ETF fund you see, and they have made huge profits.
According to the principle of rotation, in the next time, this sector is likely to have a callback, or it is difficult to maintain the previous increase, and may even face a callback. For example, the chip ETF mentioned above rose very well in the first half of the year. Later, after the stock began to pull back, the chip ETF weakened. If you choose it because it is the best ETF in this period of time, then obviously, it is easy for you to stand at a high level and face adjustment in a certain period of time, which is also a place to remind all investors: if you want to invest in the theme ETF, you need to think from a macro and long-term perspective, not. Finally, some ETFs will also enrich your investment allocation. For example, some time ago, Kechuang 50ETF needed a threshold of 500,000 to open an account in science and technology innovation board, so many people can't invest in science and technology innovation board, but you can invest in science and technology innovation board with ETF to grow together with high-quality companies in the sector, which is one of the reasons why Kechuang 50 sold so well.
First, from the perspective of trading mechanism, the advantage of option trading freedom is greater.
In A-share trading, it can only be bullish, that is to say, if the stock price rises, it will be profitable, and if the stock price falls, it will be a loss. For investors, it has always been in a passive position in market changes. Options are two-way transactions, both bullish and bearish. Therefore, investors can take the initiative.
Secondly, the stock is T+ 1 trading mode. Buying on the same day and selling on the second trading day requires overnight risk. Options are T+0 trading mode and can be bought and sold within trading days. The transaction is quite flexible and there is no need to take the risk of staying overnight. Therefore, in terms of trading methods, the risk of options can be mastered.
Second, from the perspective of market decline and increase, stocks will be more stable.
The 50ETF index consists of 50 stocks with large scale, good liquidity and the most representative in Shanghai stock market. And its contract unit is 65,438+00,000 shares. Because there are many constituent stocks, the leverage is relatively high. Generally speaking, the intraday decline and increase are around 50%, and there is no limit to the decline and increase.
However, the fluctuation range of stocks is not as big as options, and sometimes the fluctuation range of a year is only about 20%~30%, which is already relatively large. Moreover, the stock also has a daily limit to control the market, so from the perspective of the decline and rise of the market, the stock is more stable.
Third, options have an expiration date, so we should pay attention to the passage of time value.
Options can't be held all the time, and there is an expiration time. Investors need to pay attention to time risk. Option contract contains time value, and it will accelerate its decay with the passage of time. In stock investment, the theme can be held indefinitely. As long as the company does not withdraw from the market, there is no need to worry about the impact of time.
No, buying ETF is less risky than buying stocks. Because buying ETF is equivalent to buying a "basket" of stocks, the risk is dispersed by many stocks. Even if this stock falls and other stocks rise, its decline will be even smaller after weighted average. There are many risks that stocks need to face. If you only buy one stock, the risk cannot be dispersed.
The benefits of retail investors buying ETFs are:
1, ETF does not need transfer fees and stamp duty, but only charges trading commission, so the cost is very low.
2.ETF, also known as transactional open-end fund, its price trend is consistent with the underlying index, and it does not need to be comprehensively analyzed like stocks. Wide base can analyze the trend of the index, and narrow base can analyze the trend of the industry.
3. the trend of 3.ETF is relatively stable, unlike the ups and downs of stocks.
4. ETFs have t+ 1 products and T+0 products, and T+0ETF funds can buy and sell on the same day.
Is it better to buy ETF or stock?
The floating loss of stocks may be very large. If you don't understand the fundamentals, buying stocks with declining performance is likely to lose money. When the market is strong, you can buy any one. Capital scale, risk tolerance and self-investment ability, as well as investment style and profit target, all need to be considered. First of all, we must analyze our own situation clearly. Secondly, it depends on the market background. If you have mature investment ability and high expected profit target, you can choose to buy stocks. So stocks are suitable for senior investors or radical investors. ETF index fund is a passive fund, which follows the target index and is basically synchronized with the market to obtain the income that is basically synchronized with the market. More suitable for novice or steady investors. The trend of stock is closely related to performance and news. Moreover, buying ETF index funds does not need to study the fundamentals, which is relatively simple and will not be delisted. Third, you need to be familiar with the characteristics of ETF index funds and stocks and choose the varieties that suit you. Then choose the variety that best meets your standards. When the market is weak, buying ETF index funds generally has little floating loss. In particular, investors who like to be short-term should choose stocks. Of course, the volatility of stocks is high, and there is also the possibility of high returns. In short, ETF index funds and stocks have their own strengths, and the risks and returns are different under different market backgrounds. Investors need comprehensive judgment, make specific choices according to their own investment style, and should not follow suit. From the historical performance, the return of ETF index fund is much higher than that of most investors, and it is a fairly stable investment target. Generally speaking, investors without a mature investment system can pay attention to ETF index funds. It is even possible to meet a black swan and withdraw from the market. Because the short-term opportunities of stocks are obviously more than ETF index funds. Aggressive investors can choose stocks, while cautious investors should choose ETF index funds. To be moderate, it is also a prudent practice to properly allocate the two. Investors with mature investment systems can focus on stocks. When choosing to buy ETF index funds and stocks, investors should comprehensively consider their own situation, market background and the characteristics of ETF funds and stocks. As for the market that is in a downward trend, it is best to take short positions. If your investment ability is limited, of course, it is the first ETF index fund, which can get the income basically synchronized with the broader market and will not significantly underperform the broader market. This is the advantage of ETF index funds.