Recommended exchange-traded funds taught by the top of the world’s No. 1 investment trust evaluation company
The latest version of the best-selling ETF book in bookstores.『Buy these 7 revised new ETFs(Written by Tomoya Asakura) will be published on February 16th.An exchange-traded fund (ETF), a notable financial product that continues to grow at double digits almost every year in the United States, an advanced investment country.The current balance of net assets is approximately 683 trillion yen. On the other hand, the size of the Japanese ETF market is about 60 trillion yen as of the end of April 2021. but,Even in Japan, the number of people who include ETFs as an investment option is steadily increasing.Overseas ETFs are receiving particular attention.ETFs have many merits such as (1) low cost, (2) flexible trading, (3) operation while receiving distributions, and (4) ultimate diversified investment.In this series, for those who are interested in long-term investment and ETFs, some excerpts from the book are about what ETFs are, how to choose and buy them wisely, and how to interact with ETFs as asset management. Publish.
An “index fund” that aims for investment returns on par with the market average
I think that many people who are reading this series say, “I generally know about index funds (index investment trusts).”
However, let’s review the “difference between index funds and active funds (active investment trusts)”.
First of all, I would like to keep in mind that investment trusts can be broadly divided into the following two types (Chart below).
One is an “index fund” that aims for investment returns on par with the market average.
For example, Japanese stocks are managed so as to be linked to the Nikkei Stock Average and Tokyo Stock Price Index (TOPIX), and foreign stocks are linked to indexes such as MSCI Kokusai. The selection of investment stocks and the inclusion ratio are mechanically determined by the linked index, and the investment method is also called “passive”.