doctorpot1 wrote a post · Jun 12, 2023 23:32

Investing in new Technology ETF IPO

disclaimer: I have subscribed to the ETF IPO $CSOP SEA TECH ETF S(SQQ.SG)$.

Story time
An Exchange-Traded Fund (ETF) is a type of investment fund that trades on stock exchanges, as though it is a stock. It is designed to track the performance of a specific index, sector, commodity, or asset class. For example, $SPDR S&P 500 ETF(SPY.US)$ is an ETF that tracks $S&P 500 Index(.SPX.US)$, $Invesco QQQ Trust(QQQ.US)$ is an ETF that tracks $NASDAQ 100 Index(.NDX.US)$.

ETFs provide us with a way to gain exposure to a diversified portfolio of stocks or a specific market segment without having to buy each stocks individually. If we would like to create the S&P500 ourselves then we need to buy 500 different stocks and at the same ratio. That's very hard and very very expensive to do. That is where ETF comes in to solve that problem.

The fund will take money from everyone, and using the pool of money, the fund managers will buy the individual stocks to make sure that the fund tracks the performance of a specific index, sector, commodity, or asset class. Now we all own a small tiny piece of everything they bought

Since the ETF would buy so many stocks, when we buy into a ETF, we instantly gained diversification. The holy grail for many passive investors On top of that, we outsourced the hardwork of managing the portfolio to someone else, for a small fee of course. They will manage our portfolio while we manage our drama schedule

However, not all ETF are good ETF, therefore it's important to understand the risks associated with ETFs and conduct proper research before making any investment decisions.

Moo Moo's new ETF IPO
If you are interested in ETF, there is a new ETF that we can buy in Moo Moo. They are offering an IPO, so we can buy it before it is listed on the stock market. The new ETF is $CSOP SEA TECH ETF S(SQQ.SG)$ for SGD version, and $CSOP SEA TECH ETF(USD)(SQU.SG)$ for USD version. Both $CSOP SEA TECH ETF S(SQQ.SG)$ and $CSOP SEA TECH ETF(USD)(SQU.SG)$ have a minimum lot of only 1 shares, but if we are buying via their IPO the minimum is 1000 shares. However, they have an annual management fee of 0.99% of the Net Asset Value.

Do check out their summary here: CSOP iEdge Southeast Asia+ TECH Index ETF Summary Brochure

This is an ETF that tracks the iEdge Southeast Asia+ TECH Index. This index tracks the performance of the largest 30 technology companies domiciled in India, Singapore, Indonesia, Thailand, Vietnam, Malaysia. The index focuses primarily in technology related sectors such as Information Technology, Software and Consulting, Car Manufacturing, Electronic Components and Manufacturing, Retail, and Media Services. Details on the Index is here: SGX: iEdge Southeast Asia+ TECH Index

From the prospectus here are the top 10 tech companies share that they hold, and we can trade individually for 8 of them too $ASTRA INTERNATIONAL(PTAIF.US)$ $Sea(SE.US)$ $Grab Holdings(GRAB.US)$ $Wipro(WIT.US)$ $Infosys(INFY.US)$ $Venture(V03.SG)$ $Jardine C&C(C07.SG)$ $MakeMyTrip(MMYT.US)$. Among the list, SEA and GRAB are familiar name that retail investors would have traded with

I believe in the growth and future of technology therefore I bought into the IPO. However, Investing comes with a lot of risk. Therefore, if you are interested, do read their prospectus to get a very detailed view on how this ETF is structured and on what risk are there here: CSOP iEdge Southeast Asia+ TECH Index ETF Prospectus

Moo Moo is also having a promotion where they will give us cash back if we subscribe to it. Claim up to S$200 Cash Coupon on SQQ ETF Subscription. But please don't subscribe just because of this hahaha this is just a bonus

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more

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doctorpot1

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crawled out of poverty, working towards FIRE!! (financial independence, retired early)

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