Pluang Presents Global Stock ETF Investment

Startups wealthtech Pluang expanding the scope of investment products, this time introducing the ETF (Exchange-Traded Funds) asset class. There are 50 global ETFs available on their app.

Head of Investment Research Pluang Jason Gozali said, "At a time when the value of the US Dollar is strengthening and access to information that can start from just 1 Dollar is available, I see investing in US market ETFs as a profitable alternative for both beginners and advanced investors. "There are even ETFs from the beginning of 2024 until the first week of April that have produced returns of ~10%," he said, Monday (22/4).

Slowly people are starting to become aware of investment products. Of the several investment asset choices, mutual funds are assets that are quite popular among both beginners and advanced investors. As of December 2023, based on data from the Indonesian Central Securities Depository (KSEI), there has been an increase in the number of mutual fund investors by 18,87%, a significant increase since 2020.

The reason is, this type of asset class is able to produce promising returns and can even beat average inflation with minimum risk.

ETFs are a collection of assets (mutual fund-like) that trade on a stock exchange, similar to stocks, offering a unique combination of mutual fund diversification and stock flexibility. The specialty of ETFs lies in the way they can trade throughout stock exchange hours, providing flexibility that is not available in traditional mutual funds, which only trade once a day at the end of trading.

With ETFs, investors can buy or sell ETF shares whenever they want as long as the US stock market is open. Another advantage of ETFs is their ability to provide broad diversification in one investment package because investors seem to own part of the various assets in the ETF, ranging from shares, bonds, to commodities, depending on the type of ETF chosen.

This allows investors to reduce risk in an efficient and practical way. Because investors can consider various factors, such as investment objectives, risk tolerance, and diversification needs. Simultaneously, they also gain broad exposure to various asset classes without having to individually purchase each asset.

Pluang offers access to 50 top ETFs that have the potential to be studied. Some of them are the SPDR S&P 500 ETF Trust (SPY), Invesco QQQ Trust (QQQ), Vanguard Total Stock Market ETF (VTI), Vanguard FTSE Developed Markets ETF (VEA), and SPDR Dow Jones Industrial Average ETF Trust (DIA).

It is claimed that ETFs also have much more competitive transaction costs. At Pluang, transaction fees for ETFs are set the same as US stock transaction fees, namely 0,3% for regular users and 0,2% for Pluang Plus Members. When compared to mutual funds, these transaction costs are relatively low compared to mutual fund investment manager fees ranging from 1% - 4% of the investment value.

This asset class enriches the range of product portfolios that were previously present at Pluang. Among them: Digital Gold, Index Futures, US Stocks, Crypto Assets, and Mutual Funds.