Asked 3d ago
Hi everyone, I’m 20 this year and was just researching on Index Funds. And if my research are correct index funds are something like ETF right..? I got 2 questions
Perhaps you can go through robo-advisor if your capital is not huge, like stashaway or syfe. WIll recommend equity100 for strong growth given that it's all equities.
Yes you can use tiger brokers to buy index etfs like VTI, CSPX, VOO etc. Just take note that you will incur transaction fees everytime you buy or sell. Same for stocks, dollar cost average, u can buy just 1 share depending on your capital.
Index ETFs, are ETFs that invest to follow the index, since you can't buy the index directly. ETFs are just funds that are traded on exchanges, hence the name.
Yes, you can use Tiger Brokers. Tiger Brokers has one of the lowest comms out there at USD 1.99/trade and access to US/HK/SG markets. You can check out my brokerage comparison here!
Both are acceptable ways, but as a beginner, many find it easier to DCA since they fear a pullback. That being said, lump sum does beat DCA about 66% of the time if you're going to DCA over a period of 12 months. If you extend the DCA period, the win rate of lump sum over DCA increases. However, since you're 20 (and likely a student), I would advise you to DCA in over a few months since you likely do not have monthly cashflow.
Hope this helps!
Etf is similar to stock in a way that you can buy or sell it from the market. For example, you can bid and buy sp500 etf from the market itself and sell it off when you want to.
1) Tiger Broker allows you to trade ETFs from its platform.
Tiger Broker is currently one of the lowest commission broker available. It is convenient to deposit money in or withdrawal out. And the currency conversion rate can also be perform through the app at a competitive rate.
2) as you are 20 years old, you can consider doing Dollar cost averaging through FSMone RSP. But if you are considering to buy individual stocks, Tiger broker will be the ideal.
Comparing lump sum to monthly contribution, for lump sum you will see significant increase or drop but for monthly contribution, due to dca, it helps to average the ups and downs so you wont be seeing significant change.
Personally i am also using tiger broker for investing. You can refer to my blog to see the steps on account opening, depositing, withdrawal and currency conversion.
Index funds seek to track indices. There are ETFs that seek to do the same. They are, however, not equal, as ETFs are tradable, but index funds aren't. I.e., you can buy and sell ETFs, but not index funds.
Yes Tiger Brokers should give you access to buy ETFs.
You can buy securities in multiple ways, either through a broker, which will require a lump sum, or through RSPs or Roboadvisors, which allow periodic contributions at little/no cost.