Investing: How Taiwan’s influencers introduce young people to ETFs and stocks
If Taiwan is in the headlines these days, it’s mostly because of the Chinese threat. All the more heartwarming, at least from an investor’s point of view, is a report from the “Financial Times” that is currently doing the rounds: More and more Taiwanese between the ages of 25 and 34 are interested in exchange-traded funds (ETFs). Last year, almost half of them had ETFs in their portfolio. An increase of ten percent compared to previous years.
Much of the growing interest in index funds is arguably due to financial influencers (“influencers”) recommending the products on social media. Their reasoning: ETF investors do not have to constantly keep an eye on the stock exchanges and can slowly but steadily build up assets through regular investments.
So much truth. From finfluencers!
In Germany, more and more people, especially young people, are turning to cheap ETFs. But more despite than because of recommendations from various Internet celebrities. German influencers are often team crypto. Not only Bitcoin is recommended, but also any outlandish alternative cryptocurrency. That investors can suffer high losses as a result? gift.
Also popular with local influencers: The wonderful world of day trading. Build wealth slowly and steadily – ha! That might be enough for Taiwanese investors. After a small online course, Germans analyze chart patterns and trade individual stocks. Then they get rich. Or not.
Some influencers go a step further and recommend options, relatively complex financial instruments. taste? A woman with almost 20,000 followers advertises on Instagram: “Achieve above-average returns with options in falling markets.” Investors should “build up secure assets over the long term”. Almost like with ETFs. Just with options. In falling markets. Understood.
Yes: There are also influencers in Germany who recommend index funds. For example, Camilla’s son. As “Caminvesta”, she explains the world of investment to tens of thousands of followers on Instagram and TikTok, often using the example of her own ETF portfolio – and surprisingly she doesn’t want to sell anything apart from a few books.
Also read: Alleged tax guru: “Look, I know as little as you do”
Other influencers, on the other hand, turn the rather simple ETF investment into a science. Subtext: Buy my online seminars/group coaching/mindset meditations for a few thousand euros. You will then feel safe enough to invest 50 euros per month in an MSCI World ETF.
Surprisingly, in the German-speaking area, you can find a particularly large amount of knowledge in social media, especially in the area of equities. This is astonishing because it is said again and again that there is no stock culture in Germany. Maybe not across the board. In the niches of the Internet, however, stock knowledge flourishes. Plenty of men and a few women make solid stock recommendations, write stock research that would do investment banks credit, and talk shop about their dividend portfolios.
Stock investing is fun and can be very rewarding, but it’s not for everyone. So it’s clear: Germany needs more ETF influencers. Maybe Taiwan can spare a few.
Also read: What are ETFs? Exchange-Traded Funds simply explained
