Financial securities: ETFs (trackers)

Kamisaraki committed to CHRIST! Maitei investor in CHRIST! You will be called the reward of a mother and the pride of a nation. Until then, be wise and humble.

He who is faithful in managing small things receives greater things (Luke 16:10-12). He acquires the ability to manage, protect, and multiply greater things. He who is faithful in managing the property of others receives what is personally intended for him (Luke 16:10-12). He receives credibility, know-how, discernment, creativity, accessibility, and opportunities. He who is faithful to GOD, to the vision GOD has given him, to the mission GOD has entrusted to him, is blessed, prosperous in every way, and covered by GOD (Matthew 7:24-27, Mark 8:36, 3 John 1:2-3). Their name is a blessing, and they leave a good inheritance to their descendants (Proverbs 10:6-7, Proverbs 13:22). May this be your blessing and that of your household. Be committed, an investor and entrepreneur in CHRIST and for CHRIST. Clear your field. Plow your land. Watch over your nursery.

1. Stock market indices

2. Trackers (ETFs) + Bonus

   
   

❖  When the hay is removed, and the tender grass shows itself, And the herbs of the mountains are gathered in, The lambs will provide your clothing, And the goats the price of a field; You shall have enough goats’ milk for your food, For the food of your household, And the nourishment of your maidservants.

(Proverbs 27 : 25 - 27, NKJ)

1. Stock market indices

A stock market index is a numerical indicator of the performance of a financial market, a sector of activity, or an economy (geographical area or monetary zone). It is called a stock market index because it only includes securities listed on the stock market. Stock market indices evolve in line with the prices of the financial securities that comprise them. They are calculated in different ways. Some are calculated using a weighted average of market capitalization (e.g., the CAC 40 in France). Thus, the larger a company is (in terms of capitalization), the more weight it has on the evolution of the stock market index. Other indices are calculated based on the weighted average price of shares (e.g., the Dow Jones in the United States). In this case, the higher the price of a share, the greater the impact that share will have on the index. Stock market indices have no market value.

They cannot be bought or sold. They are used only to measure, inform, compare, and index. Either their value (expressed in points) is measured, or their variation (expressed in percentages) is measured. There are hundreds of stock market indices. At a minimum, there is one index per stock exchange, and more for large stock exchanges.

Examples:

• Dow Jones (New York): 30 largest American and global companies. It is the oldest and best-known stock market index in the world. Created in 1896, it is the benchmark index for the global financial market. Founded in 1792, the New York Stock Exchange is the largest in the world. It alone represents 50% of the global market.

• Nasdaq: an index representing US technology stocks (internet, IT, biotechnology, etc.), calculated on the basis of several thousand stocks.

• S&P 500: the 500 largest companies listed in the United States.

• MSCI World: international companies located in 23 countries.

• Kospi 200 (South Korea): the 200 largest South Korean companies listed on the Seoul Stock Exchange.

• Nikkei 225 (Japan): 225 largest market capitalizations on the Tokyo Stock Exchange.

• CAC 40 (France): 40 largest market capitalizations on the Paris Stock Exchange.

• SBF 80 (France): The 80 largest market capitalizations after the CAC 40

• SBF 120: 120 stocks among the top 200 market capitalizations on the Paris Stock Exchange (40 stocks from the CAC 40 + 80 stocks from the SBF 80).

• CAC PME: dedicated to French SMEs listed on the Paris Stock Exchange (weighted across all stocks).

• AEX (Netherlands): The 25 most actively traded stocks on the Amsterdam stock exchange.

• Amsterdam Exchanges All-Share index: All stocks listed on Euronext Amsterdam.

• Nifty 50 (India): The top 50 companies from 22 sectors in India.

• JTOPI or South Africa Top 40: 40 largest listed companies in South Africa.

• Nigeria Stock Exchange All Share: 202 largest market capitalizations in Nigeria.

• S&P Latin America 40: 40 largest market capitalizations in Latin America.

  
  
  
  

2. Trackers (ETFs) + Bonus

An ETF (Exchange Traded Fund), also known as a tracker, is an index fund that seeks to closely track the performance of a stock market index, both upwards and downwards. ETFs represent a market, an industry sector, or an investment strategy. They are investment funds (portfolios of financial securities) issued by approved management companies. They invest in the financial securities that make up the index. For example, the S&P 500 ETF invests in the 500 companies in the index. It is called a tracker because it tracks an index.

The main objective of ETFs is to capture the overall performance of a market, industry, geographic region, currency zone, set of securities, or companies. There are equity ETFs (accumulating or distributing dividends), bond ETFs, sector ETFs (agriculture, energy, technology, pharmaceuticals, etc.), environmentally responsible ETFs, cryptocurrency ETFs, commodity ETFs, renewable energy ETFs, leveraged ETFs, etc. There are thousands of ETFs. ETFs are held in securities accounts or life insurance accounts.

Like all listed securities, ETFs (ETF shares) can be easily bought and sold on the stock market (by placing orders through a financial intermediary). Investing in ETFs allows you to invest in several companies at once. Stock market indices and the list of stocks that comprise them are public. ETF management is transparent and automated. 🙂 When I invest in ETFs, I know what I am investing in. ETF management fees are very low. They are ideal for those who prefer passive management or who invest for the long term.

However, there is no such thing as zero risk. You should not choose an ETF at random. Consider your objectives, your investment horizon, the tax impact and/or your company's tax regime. Look at the performance history. ETFs are indexed to stock market indices, currencies, or business sectors. If the index loses value, so does the ETF. If the ETF is in a foreign currency, currency fluctuations are added to those of the index. Some ETFs may not be easy to resell. Invest wisely and gradually. If possible, choose a financial intermediary that allows you to invest small amounts in local and foreign ETFs.

Bonus

The world's first index fund was created in 1975 by John C. Bogle, a Christian who faithfully gave his tithes. He is the founder of the Vanguard Mutual Fund Group (created in 1974 in the United States) and author of the highly acclaimed book The Little Book of Common Sense Investing. This book is a reference work on investing.

** Kamisaraki = Good morning in Aymara (Bolivia, Peru, Argentina, Chile)

** Maitei = Good morning in Guarani (Paraguay, Argentina, Bolivia, Brazil)