What is VOO?
The Vanguard S&P 500 ETF (VOO) is an exchange-traded fund (ETF) that tracks the S&P 500 Index, which is considered one of the primary indicators of U.S. stock market performance. VOO's price movements follow those of the S&P 500 Index and is categorized as a passive fund. The total expense ratio (TER) for VOO is 0.03%. As of October 8, 2024, VOO ranks third in the U.S. market by assets under management (AUM), totaling $530.898 billion, following SPY and IVV. VOO is suitable for investors looking to participate in the U.S. stock market at a low cost, especially long-term investors. Many choose a dollar-cost averaging strategy, which involves investing a fixed amount each month. This approach is particularly beneficial for investors looking to gradually build their VOO holdings.
（Source：Google Finance）
What is Monthly Payment Stock?
Monthly payment stock, also known as dollar-cost averaging, refers to an investment strategy where a specific amount is used to purchase particular stocks at regular intervals. This strategy allows investors to buy stocks without needing to purchase whole shares, instead buying a corresponding number of shares based on their set monthly investment amount.For example, consider Mr. Chen, who wants to regularly purchase VOO in stages. Through the monthly payment stock feature, Mr. Chen invests $1,000 each month, which uSMART uses to buy shares at market price and deposits them into his account. As a result, Mr. Chen effectively buys about 2 shares of VOO each week, achieving a low-barrier investment strategy.
Advantages of Dollar-Cost Averaging VOO on uSMART
Choosing the right investment platform is crucial for dollar-cost averaging. Investing in VOO through the uSMART platform offers several significant advantages:
- Commission-Free Trading
uSMART provides commission-free trading services, meaning investors do not need to pay commission fees for each stock transaction. This is especially important for regular investors, as accumulated commissions can significantly erode long-term returns. By investing through uSMART, more funds can be allocated to actual investments.
- No Platform Fees
In addition to commission-free trading, uSMART does not charge platform usage fees. This allows investors to enjoy a lower cost structure in long-term investments, further enhancing investment returns. This is particularly beneficial for frequent small investments, as the absence of platform fees effectively reduces overall investment costs.
- No Custody Fees
uSMART also offers the advantage of no custody fees, meaning you do not need to worry about management fees for account funds. This provides greater flexibility for investors to manage liquidity and investment strategies.
- Convenient Investment Experience
The uSMART platform features a user-friendly interface, allowing investors to easily set up a monthly investment plan and automate their investment process. The platform supports various payment methods, enabling investors to adjust their investment amounts flexibly based on their financial situation and investment goals.
How to Purchase Monthly Payment Stocks on uSMART
Step 1: Log into the uSMART HK app and click on "Trading" at the bottom right of the page.
Step 2: Click on "Monthly Payment Stocks" in the second column and select "All Monthly Payment Stocks."
Step 3: Choose your desired monthly payment stock, select the investment amount, deduction method, and deduction date, then create your investment plan.
Once confirmed, the investment plan will take effect in real-time.
(Source: uSMART HK)
