When I first read it I thought it was a scam. Blackrock is offering one of these, it’s legit. Why the hell are the SEC allowing it now in the year of our lord 2024? Is the growth machine really that stagnant that they need this?
They got amazing ticker names like BRRR and HODL
Awesome 🤩
However, not sure that stock market and memes get along very well…
Wtf is an ETF?
Collection of finance stuff (stocks, bonds, derivatives, currencies) that someone like Blackrock sells to you but they manage.
These ones are tied to crypto currency markets, so it involves companies that do bitcoin stuff (like coinbase, or Nvidia who sell mining cards, or companies who do the mining). It’s so fund go up when crypto go up, fund go down when crypto down, but it’s not directly tied to bitcoin so it’s supposed to be less volatile.
It’s usually cheaper to buy ETF shares because instead of buying whole shares, you’re buying a piece of a medley. And blackrock gets to manage more money (and steer the economy) and make themselves money off of what they think it makes sense to hold, and also make management fees.
wait until you learn how derivatives work, it’s like if athletes were allowed to bet on their own sports and teams. Literally gambling, but on stonks and agricultural output.
I wanted to learn how this shit works, and the more I speak the language of the finance bros the dumber it is.
Since the prior answer is highly biased and to some extend factual incorrect, lets try with a different one.
Lets say you want to invest in Chinese companies. First option is to choose which ones you want to invest in. This requires a lot of knowledge and constant attention. The 2nd option is to pay someone to do that for you. This is how big companies like Black Rock make the most of their money. This is expensive for you, though. The third option is to let an algorithm do that for you. And thats ETFs.
Etfs have couple of advantages: 1. They cost basically nothing. You can get them for as low as 0.05 % of your invested capital, while active managed fronds take 3 % or even higher. 2. You aren’t depending on some kind of genius manager to get your profits, but have a 100 % transparent algorithm at your hand. 3. Since these ETFs aren’t actively managed you need far less people working at them and the more people invest, the cheaper they become for everyone. Companies like Vanguard are owned by the people buying their products, basically turning capitalism upside down, while participating and profiting from it.
The best known ETFs are the iShares MSCI World and the Vanguard FTSE all-world, where MSCI and FTSE are the companies that developed the algorithm and iShares and Vanguard are the companies managing the shares for you (iShares is Black Rock). These are investing in almost every company on earth, which is publicly traded. This yields an average return of roughly 7–8 % per year in the long term.
Back to the example: you want to buy Chinese companies, but don’t know which ones? And you don’t want to pay 3 % per year to some dude buying them for you? Then just buy for example the MSCI China ETF (or any other), where you are buying shares from over 750 Chinese companies and hopefully profit from the Chinese economic development.
Oh wow that’s such a bad idea amazing
