Dividend ETF (Exchange Traded Fund, referred to as ETF) is an index fund. Its investment portfolio mainly includes dividend stocks with stable dividends and high cash dividends. The purpose is to provide investors with a convenient, efficient and low-cost investment opportunity , tracking bias and tracking error are usually minimized through fully replicated passive investment management.The investment strategy of dividend ETF is relatively simple, easy to understand and track, so it is considered to be a relatively stable investment tool suitable for long-term investment.
What does bonus etf mean
Whether it is worth long-term investment depends on the investor’s own risk preference, investment objectives and investment period and other factors. Generally speaking, dividend ETFs can bring relatively stable returns to investors in the long run, and compared with other index funds, their transaction costs are lower, which can better reduce tracking errors. However, dividend ETFs also have certain risks, such as market fluctuations, fund management costs, etc. Investors should choose and adjust according to their own risk tolerance and investment goals.