Review and Outlook: The S&P 500 Index

The S&P 500 Index is an important benchmark for the US stock market, encompassing 500 large publicly traded companies and broadly representing the overall performance of the US economy. In 2024, the S&P 500 Index experienced significant growth, with an increase of over 24% year-to-date. On December 6, 2024, the S&P 500 Index reached 6,099.97, marking its highest point to date. As the market continues to recover from the strong performance of 2023, the overall trend shows a strong bullish sentiment.

(Source: Google Finance)

Looking ahead to 2025, the market outlook remains optimistic. Despite facing uncertainties related to interest rates, inflation, the US elections, and economic soft/hard landing scenarios, these factors are gradually becoming “known unknowns,” and the market has begun to respond accordingly. Historical data indicates that since 1949, there have been 12 bull markets that continued into the third year after two consecutive bull years. Many analysts anticipate that 2025 will be a robust bull market year, with the S&P 500 Index expected to exceed 7077 points, reflecting approximately 17% earnings growth. This growth will be supported by stable economic conditions in the US and potential policy backing.

What is Monthly Payment Stock?

Monthly Payment Stock, also known as systematic investing, refers to the investment strategy of purchasing a specific stock at regular intervals for a fixed amount. This approach allows investors to buy stocks on a monthly payment basis. Each purchase does not require buying a full lot like typical stock trading; instead, investors can purchase the corresponding number of shares based on their set monthly payment amount.

For example, consider Mr. Chen, who wants to invest in the S&P 500 Index in a phased manner. By using the Monthly Payment Stock feature, Mr. Chen can invest USD 1,000 each month, which uSMART will use to purchase shares at market price and deposit them into Mr. Chen's account. This means Mr. Chen effectively buys about 2 shares of the S&P 500 Index each month, achieving a lower barrier to entry for investment.

Advantages of Monthly Payment Stock in the S&P 500 on uSMART

Choosing the right investment platform is crucial for systematic investing in stocks. By investing in the S&P 500 through the uSMART platform, you can enjoy the following significant benefits:

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 especially 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. Particularly 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.

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)