Review and Outlook: Nasdaq Composite Index

The Nasdaq Composite Index is an important indicator of the US stock market, encompassing all stocks listed on the Nasdaq exchange, particularly technology stocks. In 2024, the Nasdaq Index experienced significant growth, surpassing the 20,000-point mark for the first time on December 11, 2024, reaching a new high of 20,204.58 points. Year-to-date, the Nasdaq has gained over 30%.

(Source: Google Finance)

Looking ahead to 2025, the market outlook remains optimistic. The recent gains indicate that, in contrast to the Dow Jones and S&P 500, which primarily rely on risk premium declines for valuation expansion, the core momentum behind the Nasdaq and Nasdaq-100's rise is driven by profit growth. Approximately 68% of the Nasdaq's year-to-date increase is attributed to earnings. From this perspective, projecting next year's profit growth can provide insights into the Nasdaq's potential for the coming year. According to institutional forecasts cited by Ping An International, the overall profit growth rate for the Nasdaq in 2025 is expected to reach 25.7%, placing it among the top global indices, with the Nasdaq-100's growth estimated to be comparable.

What is Monthly Payment Stock?

Monthly Payment Stock, also known as systematic investing, refers to the investment strategy of purchasing specific stocks at fixed intervals for a predetermined amount. This approach allows investors to buy stocks on a monthly basis without the need to purchase whole lots for each transaction. Instead, investors can buy a corresponding number of shares based on their set monthly payment amount.

For example, Mr. Chen wants to invest in the Nasdaq Index in a phased manner. Using the Monthly Payment Stock feature, Mr. Chen invests USD 1,000 each month, which uSMART uses to purchase shares at market price and deposits them into Mr. Chen's account. This means Mr. Chen effectively buys about 2 shares of the Nasdaq Index ETF each month, achieving a low barrier to entry for stock investment.

Advantages of Monthly Payment Stock in the Nasdaq on uSMART

Choosing the right investment platform is crucial for systematic investing in stocks. By investing in the Nasdaq through the uSMART platform, you can enjoy the following significant advantages:

1.Commission-Free Trading

uSMART offers commission-free trading services, meaning investors do not have to pay commission fees on each stock transaction. This is particularly important for those making regular investments, as accumulated commissions can significantly erode long-term returns. Investing on uSMART allows you to allocate more funds to actual investments.

2.No Platform Fees

In addition to commission-free trading, uSMART does not charge platform usage fees. This enables investors to benefit from a lower cost structure in long-term investments, further enhancing investment returns. Especially for frequent small investments, the absence of platform fees effectively reduces overall investment costs.

3.No Custodial Fees

uSMART also provides the advantage of no custodial fees, meaning you won’t have to worry about management fees for your account funds. This fee exemption offers investors greater flexibility to manage liquidity and investment strategies.

4.Convenient Investment Experience

The uSMART platform offers a user-friendly interface, allowing investors to easily set up a Monthly Payment Stock plan and automate the investment process. The platform supports various payment methods, enabling investors to adjust their investment amounts flexibly according to their financial circumstances and goals.

5.Support for Fractional Share Investing

uSMART allows investors to engage in fractional share investing, meaning that even if you do not have enough funds to purchase a whole share, you can still invest according to your set monthly payment amount. This further lowers the investment threshold and enables flexible allocation.

How to Invest in Monthly Payment Stock on uSMART

Step 1: Log in to the uSMART HK app and click on "Trading" at the bottom right corner of the page.

Step 2: Click on "Monthly Payment Stocks" in the second column and select "All Monthly Payment Stocks."

Step 3: Choose your preferred stock, set the monthly payment amount, payment method, and deduction date, and create your Monthly Payment Stock plan. Once confirmed, the plan will take effect immediately.

(Source: uSMART HK)