After the violent bull and bear switch and huge fluctuations in the past few years, I feel more and more that a good investment must be a long-term thing.
An investment that can eventually make money requires more repeated thinking, patient waiting, and even necessary suffering.
You can go to review, every time we are full of confidence, and even rush to be the first to place an order with a heartbeat, which time is not in exchange for account losses and heartfelt chagrin?
So many times, I really can't eat hot tofu in a hurry, and I can't make quick money.
Let's just say that the recent high premium hype of QDII-ETF, although the company has repeatedly issued announcements to remind of the risk, although the ** widely reported to persuade everyone to calm down, but there are still friends who did not resist the attraction of *** and chased the rise on the car, resulting in a high position at a loss.
In fact, the correct posture of investing in QDII must be asset allocation.
The core purpose is to diversify a single risk and share in the growth of the global economy, and this mindset is suitable.
At present, some U.S. stock ETFs have a high premium rate, so wait a minute, there is really no need to be in a hurry.
China Universal announced last Friday that the US 50 ETF (159577) will start issuing today (January 30), with a maximum fundraising size of 2RMB 200 million, ** The scale of the fundraising process is close to, up to or more than 2If it is 200 million yuan, the fundraising can be terminated in advance (the specific announcement shall prevail). If everyone is really optimistic about the "core assets" of the United States, they can pay attention to it now.
The leading U.S. stock market is the U.S. 50 ETF
There is a popular saying in the market today - indices are a tool to express investment opinions.
This sentence is very true, when you give money to the manager, you trust him as a person and the party behind it; When you choose to invest your money in an ETF, you are judging how the underlying assets of the index will perform better in the future.
My investment view is more traditional, preferring "large-capitalization leading stocks".
This kind of company with a mature and stable business can give me the necessary sense of security.
I believe that whether it is China or the United States, the real "core asset" will always be the scarce wealth of the times.
In fact, investing in core assets in U.S. stocks is a very good experience.
Apple, Microsoft, Google, Nvidia, Amazon, Facebook, Tesla, these are currently the seven largest companies in the United States, except for Tesla, all of which are trillion-dollar companies.
And it is these giants that have grown in market value in the last year and in the last 10 years can be said to be quite amazing.
Because of this, if we can invest more intensively in these leading stocks, will the returns and experience be better?
This is precisely the investment logic of the US 50 ETF (159577), which tracks the MSCI US 50 Index and selects the top 50 companies by circulating market capitalization.
In addition to the seven giants of the U.S. stocks, biopharmaceutical giants Eli Lilly, United Health, Johnson & Johnson, Merck, Warren Buffett's Berkshire Hathaway, Munger's Ai Stock Market Explorer, as well as Broadcom, JPMorgan Chase, ExxonMobil, and Procter & Gamble, are all the top 20 constituent stocks of the MSCI US 50 Index, and these 20 constituent stocks account for 73% of the weight in the index, with a high concentration of shareholdings.
The MSCI US 50 Index has risen 34% more than the S&P 500 over the past 10 years, but the annualized volatility is about the same, and the investment experience is still very good.
Data**: wind, statistical period: 2013 1 1-2024 1 23, past performance of the index is not indicative of the future.
Then some friends may ask, where does this long bull of the core assets of the United States come from?
Technological innovation and a strong Federal Reserve
I think that the long-term bullishness of U.S. stocks in the past few years can be justified from two aspects: micro and macro.
From a bottom-up point of view, the profitability and innovation ability of the core leading companies in the United States are very strong, and they have formed their own competitive barriers through rounds of scientific and technological innovation.
Like now, Apple and Microsoft, which are competing for the throne of the world's total market capitalization, are old companies that went public in 1980 and 1986 respectively, but they have always had the ability to lead the trend of innovation, and have gone through 40 years of ups and downs to today, experienced the PC wave in the 1980s, the Internet revolution in the 1990s and the mobile Internet in the 2010s, including today's AI wave, are at the forefront of research and development.
Apple and Microsoft accounted for 13 percent of the MSCI US 50 index1% and 121%, their innovation and market capitalization race, will eventually be transmitted to the index.
It is a group of technology companies represented by them that have led several rounds of opportunities for technological revolution, which have finally been transformed into solid corporate profits, and finally promoted the long-term upward trend of the index, which is the core of the long-term bull of US stocks.
In this process, the importance of the information technology industry is self-evident.
The largest heavy industry in the MSCI US 50 Index is precisely information technology, which accounts for 57% of the weight, and has the greatest weight in the direction of the most vitality and competitiveness, which is the characteristic of the MSCI US 50 Index.
Data**: MSCI, WindAs of January 23, 2024.
From a top-down perspective, the Fed's ability to guide expectations has been very strong.
In December, the Federal Reserve interest rate meeting that has just passed far exceeded market expectations, which means that the level of inflation in the United States continues to improve.
The timing of the Fed's monetary policy easing (interest rate cut) in the market game may come further.
Behind this is the increase in the probability of a soft landing for the U.S. economy.
On January 24, Standard & Poor's released the PMI for the U.S. manufacturing and services sectors, and the U.S. composite PMI was 52 in January3, higher than expected 51 but also hit a new high in the past 7 months. The index of business activity, which represents the service sector, came to 529, also up from 51 in December4。
On the whole, the artificial intelligence revolution has driven a new round of growth of U.S. technology stocks + a soft landing of the U.S. economy + the Federal Reserve's expected interest rate cut, and all signs indicate that the follow-up of the U.S. 50 ETF (159577) should be optimistic.
Global asset allocation
To be honest, the most important lesson for me in 2023 is that investment cannot be limited to a single variety, and it is necessary to achieve a diverse balance in equity, fixed income, QDII, including bank wealth management.
Cross-border investment is a relatively new field for us, and every time we take a step earlier, we can accumulate more experience.
Whether it is for the first company or our investors, the principle is the same.
In terms of cross-border investment, China Universal actually started very early. As early as 2010, China Universal issued its first QDII product, and the layout of index products has also included Nasdaq Biotech ETF and Nasdaq 100 ETF.
Global asset allocation is something that must be done continuously once it is opened, and everyone can make good use of this window to slowly build up their family asset portfolio.
Risk Warning and Disclaimer
*There are risks and investment should be cautious. This material is promotional material only and is not intended as any legal document. Investment is risky, and the manager promises to manage and use assets in good faith, diligence and due diligence, but does not guarantee a certain profit, nor does it guarantee a minimum return. Investors should read the "Contract", "Prospectus", "Product Key Facts Statement" and other legal documents in detail to understand the specific situation of **. The Manager's other performance and past performance of its investment staff are not indicative of its future performance. CUAM MSCI US 50 ETF**Investment** (QDII) (referred to as "US 50 ETF" on the exchange, hereinafter referred to as "this **") is issued and managed by China Universal ** Management Shares***, and the agency does not assume the responsibility for the investment, redemption and risk management of the products. This ** is a medium risk level (R3) product, which is suitable for investors who are balanced (C3) and above after the customer's risk tolerance level assessment. When subscribing to the agency, the risk rating rules of the agency shall prevail. References to ** or ** in this material are not sponsored, endorsed or promoted by MSCI and MSCI accepts no responsibility for any such ** or ** or any index on which such ** or ** is based. A more detailed description of the limited relationship between MSCI and CUAM ** Management Shares*** and any related ** can be found in the CUAM MSCI US 50 ETF Investment Offering Document. The underlying index is not fully representative of the entire market. There may be a deviation between the average return of the underlying index constituents and the average return of the entire ticket market. The MSCI US 50 Index has increased in each year from 2019 to 2023. 7%, data **wind, as of 2023 12 31, the past performance of the index is not indicative of future performance.