Which rose more, ETF fund or stock?
In fact, ETF and stock are two completely different investment tools. As a kind of securities investment fund, ETF is a combination of a basket of securities, and there are five main differences from a single stock.
The investment risk of stocks is relatively concentrated, and ETF, as a basket of securities portfolio, can be dispersed to some extent. According to efficient market theory and portfolio theory, it is difficult for investors to effectively diversify their investment risks by choosing individual stocks. Moreover, the concept of active investment can not achieve long-term stable income beyond the stock index.
Therefore, from the perspective of balancing risks and returns, investors should invest in ETFs and implement an indexed investor strategy instead of spending a lot of energy and financial resources to choose individual stocks.
In investment practice, there are a large number of stocks in the A-share market, which one can make money? Blue chips are relatively mature and easy to study, but the excess returns are relatively small; Small and medium-sized stocks often have dark horses, but the risk of individual stocks changing face is greater. Choose to choose often miss the opportunity, often the market rose, but they didn't make much money, and some even "Man Cang stepped on the air".
However, for people with rich experience in stock trading and sufficient investment ability, the income of ETF funds is too small and unstable, and they are more willing to study and invest in individual stocks.
Generally speaking, if you are a novice investor, have weak ability in stock selection and timing, or have no time and energy to conduct research, then it is more appropriate to invest in ETF funds. If you have the ability to invest in stocks, you can invest in stocks directly. Although the risk is relatively high, the same income will be higher.