投資新手必學！小資本都可以躺平賺錢！ [ENG+中文CC]

Summary

In this video, AhJu, a former iBank professional investor, shares accessible methods to generate passive income, even with just 8,000 HKD. He explains key considerations for passive income investments, such as reliability, dividend frequency, and total return. He covers options like ETFs, bonds, and covered call ETFs, detailing their benefits and risks. AhJu emphasizes diversification, low fees, and the importance of understanding market risks. He also provides tips on using platforms like Interactive Brokers for bond investments and highlights his Patreon for more market insights.

Takeaways

• 💡 Creating passive income is accessible to everyone, not just the wealthy, and can be initiated with as little as 8,000 HKD.
• 🏦 AhJu, with over a decade of experience as a professional investor, shares insights on personal finance and investing strategies.
• 💼 When investing for passive income, consider the reliability of payouts, frequency of dividends, and total return including capital appreciation.
• 📊 ETFs like Vanguard High Dividend Yield ETF offer a diversified investment with low entry costs and have shown consistent dividend increases over time.
• 🌐 US-listed ETFs are advantageous due to low or no commission fees from some brokers, making them accessible for small-scale investors.
• 💹 The annual management fee for Vanguard ETFs is significantly lower than many Hong Kong MPF funds, enhancing the value of passive income.
• 📈 Companies within the ETFs mentioned retain a portion of their earnings, which contributes to capital appreciation and increases the total return on investment.
• 🌱 Despite a lower initial dividend yield, the potential for growth and sustainability of dividends makes ETFs an attractive option for long-term passive income.
• 💵 US withholding tax can reduce the effective dividend yield, suggesting alternative investments like European UCITS ETFs to avoid such tax deductions.
• 📊 The choice between different types of bonds depends on the desired term, with short-term bonds currently offering higher yields than long-term ones.
• 🔐 U.S. Treasuries are considered a safe investment for passive income, with yields locked in at the time of purchase, unaffected by market rate fluctuations.

Q & A

What is the main purpose of the video?

The main purpose of the video is to explain accessible methods to create passive income using a small amount of savings, specifically starting with 8,000 HKD.

What are the three factors to consider when investing in an asset for passive income?

The three factors to consider are the reliability of the passive income, the frequency of dividend payments, and the total return including both dividends and capital appreciation.

Why are U.S. bonds considered reliable for passive income?

U.S. bonds are considered reliable for passive income because the return is fixed at the time of purchase, ensuring predictable payouts.

How does the reliability of dividends from stocks compare to bonds?

Dividends from stocks can be less reliable than bonds because they can change with the company's business performance, whereas bond returns are fixed.

What is an Exchange-Traded Fund (ETF) and why is it recommended for passive income?

An ETF is a fund that primarily invests in a basket of assets, such as stocks. It is recommended for passive income because it helps diversify investments, reducing individual stock risks, and can have low management fees.

What is the Vanguard High Dividend Yield ETF and how does it work?

The Vanguard High Dividend Yield ETF is an ETF that invests in high-dividend-yielding large companies listed in the United States. It provides passive income through dividends and offers diversification with a low annual management fee.

What is the significance of the dividend yield of the Vanguard High Dividend Yield ETF?

The dividend yield of the Vanguard High Dividend Yield ETF is 2.8%, which is considered low, but it has been increasing year over year, indicating potential for growth and sustainability.

How does the Vanguard All-World High Dividend Yield UCITS ETF differ from the Vanguard High Dividend Yield ETF?

The Vanguard All-World High Dividend Yield UCITS ETF invests in global stocks, unlike the Vanguard High Dividend Yield ETF which focuses on U.S. companies. It is not subject to U.S. withholding tax but has higher management fees and lower liquidity.

What are the advantages of investing in U.S. Treasury bonds for passive income?

U.S. Treasury bonds offer a fixed yield, are considered very safe, and currently have higher yields than a few years ago. Additionally, interest paid on bonds is not taxed, allowing investors to receive the full yield.

What is a covered call ETF and how does it provide passive income?

A covered call ETF is a fund that tracks an index and also sells call options, providing additional income from the premiums. This income is distributed back to shareholders, offering a higher and more frequent dividend yield, but at the cost of some potential upside.

What are the risks associated with covered call ETFs that track individual stocks?

Covered call ETFs that track individual stocks carry higher risks because while the gains are capped, the losses when the stock falls are borne entirely by the investor.