How I start monthly S&P500 investment via Nordnet.

calendar Dec 2, 2023 · 2 min read  ·
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Overview

SP500, Nordnet usage

The article records operation steps of monthly saving with Nordnet. and records the questions during the whole process.

Background questions

  1. Why choose index fund? I don't want pay too much time on investments, I don't have more knowledge of investment. And I want to have some level return from deposit. S&P 500 index fund includes most profitable 500 companys in the US, and people trust their ability to make money. So I chose the one as the target for my month saving.

  2. Why choose ETF? ETFs are mostly index funds, and ETFs have lower running cost (~0.0x%) compare to mutual fund(~0.x%). For a long-term saving, ETFs are cost saving.

  3. Why use Nordnet? In my living region, not many option online brokers. Nordnet is one of famous one.

  4. Why monthly investment? Based on some theory, regular investment can average out costs，The risk is lower than a one-time investment.

NordNet ETF Entrance

NordNet App supports Engilish, website does not. But website supports all functions. I chose website to start, and use Chrome translation for English.

Hover mouse at the sencond title ("Stock exchanges and markets") of top menu, the window menu will show.

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click the "ETF exchange-traded funds", ETF data base will show.

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In the data base page, left-top search bar can be used to search a ETF's name. For browsing s&p 500 funds, searching "500" is OK

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After search "500", I clicked the "Costs" let it show list with running cost ascending order.

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ETF's naming rule

The Name of each fund includes many components, and the name is designed to protect investors. But it is hard to understand if no experience, after investigation, I will explain what they mean in the section.

Generally, the name is compose of: "ETF issuer + underlying index + regulation standard + ETF + additional information"

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  • ETF issuer is the compnay name who provides the ETF.
  • Underlying index indicates which index it is tracking.
  • Regulation standard is the ruls the ETF complies to protect investors. In EU it is 'UCITS' which means "Undertakings for Collective Investments in Transferable Securities".
  • ETF is a distinguish means it is an ETF.
  • Additional information might include below aspects:
    • Currency used, such as USD (US Dollar), GBP (British Pound), EUR (Euro), etc.
    • Currency hedging period： Hedged， Daily hedged, ...
    • Use revenue for investment (ACC, C), divendes (D, Dis, Dist)

Buy one ETF from NordNet

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Monthly saving via Nordnet

Reference

https://www.boerse-frankfurt.de/en/wissen/wertpapiere/etfs-und-etps/etf-names https://zhuanlan.zhihu.com/p/63212211

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