An ETF is a product listed on an exchange that allows index funds to be traded like regular stocks. It first appeared in 1993.
The first ETF was a product called SPY, which tracks the S&P 500 index. Simply put, it is a product that invests in the stock price index of 500 common stocks selected by Standard & Poor's.
Buffett was so positive about ETFs that he left a note in his will stating that 90% of his assets should be invested in index-tracking ETFs.
ETFs allow you to invest with peace of mind, free from the stress of worrying about a single article.
This is because they invest in entire industries or markets, not just individual stocks, and thus, they are products that look at the forest. A single ETF portfolio can include anywhere from ten to thousands of companies.
By building an investment portfolio with these ETFs, you can enjoy the benefits of diversification and make investments without losing money.
Additionally, since I don't have to react sensitively to various economic issues like economic news, FOMC meetings, and corporate earnings, I can focus more on my core business and daily life while investing.
--- 「Prologue.
From "I decided to make a comfortable investment"

Investing in an entire industry rather than a single company is less likely to fail.
It is also beneficial for risk management because it allows you to enjoy the benefits of diversification.
This can also be proven by past cases.
Looking at the world market capitalization rankings in 2000, the order was Cisco, Microsoft, Nokia, Intel, and Oracle, and in 2022, the order was Apple, Microsoft, Saudi Aramco, Google, and Amazon.
Of the top ten companies by market capitalization in the world in 2000, only Microsoft remains.
In 2000, Intel and IBM were touted as the companies that would lead the future of the computer industry.
It was difficult to choose Microsoft over these.
However, if you invest in an ETF related to this, it doesn't matter if a company on the list is delisted or its stock price falls due to poor performance. This is because the ETF periodically rebalances (rebalancing assets) to reduce the investment weighting of that company or remove it from the investment list altogether.
If you've been investing in an S&P 500 index-tracking ETF since 2000, you'll automatically have a higher weighting in Cisco in 2000 and Apple in 2022.
--- 「Chapter 1.
From “Why You Should Pay Attention to ETFs Now”

To answer the question of whether it's better to invest in individual U.S. stocks or in ETFs, let's look at an example.
When it comes to 'online shopping,' Korean companies that come to mind are Naver and Coupang, while global companies come to mind include Amazon.
Global online shopping transaction volume has been steadily increasing for several years, and the outlook for the e-commerce market is expected to remain bright.
So, it's only natural that you'd want to invest in Amazon, the current global leader in this field, right?
Let's do a quick search on Amazon to find out the stock price.
As of February 2022, that's $3,000 a week, or about 3.5 million won in Korean currency.
As of 2020, the average monthly salary of an office worker is 3.2 million won, so one share of Amazon stock is equivalent to the average salary of an average office worker.
It's more expensive than my salary.
The average monthly living expenses for a single-person household is about 1.32 million won, so after deducting living expenses, you can live there for about a week every two months.
This may be devastating news for beginners looking to start investing in US stocks.
To minimize risk, you should diversify your investments across a variety of companies, including not just Amazon, but also Apple, Microsoft, and Google. Buying just one Amazon stock every two months isn't a wise choice.
A good alternative in this case is ETF investment.
Among overseas ETFs, there's one called XLY, which also includes Amazon. As of February 2022, XLY's price is $181, or approximately 210,000 won.
It's less than a tenth of the price of a week on Amazon.
--- 「Chapter 1.
From “Why You Should Pay Attention to ETFs Now”

When it comes to investing in US stocks, most people think of IT giants like Apple, Microsoft, and Google.
These companies are actually stocks that are mainly purchased by individual investors in our country.
If you want to invest in all of these, there's no better ETF than the one I'm introducing today.
It's QQQ.
QQQ is an ETF that tracks the Nasdaq 100 index, and its exact name is 'Invesco QQQ Trust Series 1'.
This ETF is managed by Invesco. It is a product that selects the top 100 companies by market capitalization on the NASDAQ among American companies that pursue innovation and growth.
--- 「Chapter 4.
Among the simplest investment methods, index-tracking ETFs

Second, set your investment period and goals.
As I give lectures and produce videos, I receive a variety of questions related to investing.
However, in these cases, it is often difficult to answer because the questioner does not properly inform the investment period and goals.
When I'm asked, "I plan to invest 1 million won a month. How do I build a portfolio?", I respond with, "When and how will I use that money?"
In this way, investments always have a time frame and a purpose.
This way, you can draw up a clear portfolio.
For example, someone recently said to me, “I have 50 million won in cash right now.
This money will be used to purchase a house as I will be moving in a year.
“How should I invest?” he asked.
I replied, “If you can’t afford to lose even a single penny of your 50 million won in a year, I wouldn’t recommend investing.”
At the same time, I recommended the bond ETF introduced earlier in this book.
--- From "Chapter 9. Creating an ETF Portfolio"

Everyone dreams of compound interest when investing, but that effect doesn't always come through long-term investments.
To maintain your wealth, you must protect your profits and assets against the economic crisis that occurs once every ten years.
In the past, the QQQ ETF fell 75% from its peak during the tech bubble in 2000.
And it took a whopping 15 years to recover the principal.
If, instead of going all-in on a single QQQ ETF, I had invested in assets with opposing characteristics, such as gold and bonds, I could have minimized my losses and enjoyed the benefits of compound interest.

--- From "Chapter 9. Creating an ETF Portfolio"