đ„Complete personal analysis of "market capitalization" and "high dividend":
đWhich one is better to invest in? The most important thing is to choose the one that suits you⌠ïž
đșMarket capitalization strategy "S&P 500, Taiwan 0050"
đčAdvantages:
1. Usually choose growth-oriented enterprises with high "value-added potential" in the long term.
2. S&P 500 covers 500 large companies, while Taiwan 0050 covers 50 large companies in Taiwan (TSMC accounts for about 51%), with diversified risks
3. Investing in "market capitalization" means investing in the world's leading companies! Higher earning potential
4. Suitable for long-term investment, the long-term "return rate/win rate" is relatively high
đžDisadvantages:
1. The "short-term" volatility is relatively large, while the "long-term" is stable and upward.
2. You need to be "patient" and hold for a long time to obtain expected returns. Short-term returns are relatively unstable.
3. Changes in the overall market will have an impact on the "investment portfolio"
đșHigh Dividend Strategy "Taiwan High Dividend 0056"
đčAdvantages:
1. Provide "stable cash flow" suitable for investors who need "fixed income" to pay daily expenses such as living expenses/mortgage
2. They are usually mature companies with relatively small stock price fluctuations.
3. Taiwanâs tax on high dividends is relatively favorable
đžDisadvantage: "Value-add potential is usually lower than that of growth stocks"
đPursue long-term value-added/can withstand market fluctuations, suitable for market capitalization types
đThe pursuit of "stable cash flow" is suitable for high dividend investments
âĄïžWhich one do you belong to? Welcome to discuss together