#15 - China opens, Tesla closes
Parts of China reopens
The citizens of Shanghai and Beijing can finally breathe in the city-air, after being locked inside their homes for two full months.
Of course, their very restricted to where they can do, and they have to show negative test results to everything, including takes the bus.
But opened up they did, and it will be interesting to follow if this will soon create less pressure on the extreme supple chain issues.
In other news
Tesla wants to bring back most of their workers for "a minimum of 40 hours" to the office.
This has created a wild reaction, especially in Berlin, where unions and workers are not prepared for that kind of forced decisions.
On top of that Elon Musk reportedly wants to cut 10% of the workers since he has a "super bad feeling" about the economy.
This is important news, as Tesla and Musk in many ways represent the tech and hype-sector of the American stocks.
I'm not sure that it will bring any shocks to the market, but it might provide a look-out of what is happening in other companies as well.
We will have to see how this plays out.
The power of the ETF
Last time we talked about index investing, and what an index is.
Today I will shortly open up the topic of ETFs.
And ETF, like we discussed, is an Exchange Traded Fund.
What it does is to simply follow the underlying index, and as such tracking what the index is doing.
Let's take an example...
The S&P 500 index is a huge basket of stocks, which contain the largest 500 stock companies in the US.
Now if you want to invest into it, you can buy an ETF that tracks the S&P 500 index.
So you're buying an ETF, which then tracks an index, that then tracks the performance of a said amount of stocks.
Inception-investing some might say.
The ETFs are of course then created by a company, that makes money on you investing in the index through their ETF. This comes out as a yearly fee for you.
There are many companies that creates ETF, but the one you will see my talking about is Blackrock, who creates the iShares ETFs.
They are simply the largest fund manager in the world, and you can buy most of their ETFs in Europe, as supposed to Vanguard which often is not investable from a European broker.
In order to invest in the S&P 500, you can buy the:
"iShares Core S&P 500 UCITS ETF".
Their fee is 0,07% per year.
That's the power of the ETFs.
You can follow 500 companies, through 1 single investment for a small fee of 0,07% per year.
I do this a lot, since it's simply a great way to be invested and to be diversified in your investments.
I do own a total of 13 ETFs though, since I like to use them as a way of investing into a certain theme - more on that later.
The direct link for searching different ETFs on iShares is here
That was all for today, a bit more short and sweet this time.
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