ETFs are listed on the stock exchange, and their trading methods are the same as stocks. Investors can open stock accounts at securities firms to buy and sell. ETFs are particularly suitable for medium - to long-term investors, as they are linked to indices and value the "overall trend" the most. There is no need to study the performance of specific stocks, nor is there a need to focus on the market or worry about sudden events causing large fluctuations.
ETFs are becoming increasingly popular among investors seeking high returns, and investing in US ETFs has become a better investment choice, with some products even yielding far higher returns than Chinese real estate and trust products.
Why choose to invest in US ETFs?
Compared to domestic ETF products, ETFs in the United States are more mature and have two major advantages:
Firstly, comprehensive coverage across all fields, truly global asset allocation. The investment targets of US ETFs include stocks, bonds, futures, commodities, real estate, etc. The investment regions include single countries, regions, or the world, while the industries include biotechnology, healthcare, energy, finance, precious metals, base metals, agricultural products, telecommunications, and real estate. It can be said that as long as one enters the US ETF market, they can invest in most industries in most global markets. For example, investors are optimistic about the BRICS countries and can buy long-term ETFs that specifically track the BRICS markets (such as the Guggenheim BRIC ETF, code: EEB); If betting on the Middle East, you can also invest in ETFs that track Islamic regions (such as iShares MSCI ACWI Index ETF, code: ACWI). And this kind of global asset allocation will be difficult for domestic ETFs to achieve for a long time to come.
Secondly, competitive investment returns. In the United States, most active funds cannot outperform ETFs after deducting management fees. More importantly, compared to the domestic market, the United States has hundreds of positive and negative leveraged ETFs (ETFs that use financial derivatives such as stock index futures and swaps to achieve leveraged investment effects). Investors can make money from both bull markets and bear markets; You can choose to invest without leverage or use 2x or 3x leverage to enter and exit the market, achieving leverage returns relative to the tracking index. Therefore, in the US ETF market, even if the index volatility is small, higher profits can be obtained.