Jakarta. Jakarta-based wealth tech app Pluang recommends investors to invest in CFD US stocks for portfolio diversification, given its robust mid-pandemic performance.
CFD US stocks can also be a great option for Indonesia’s young investors, whose numbers have grown tremendously in recent years, according to Pluang.
Recent surveys show the number of new investors jumped 32 percent in the past year, with most newcomers from the Gen Z group.
Pluang Co-Founder Claudia Kolonas said on Monday the increase of investors indicated Indonesians’ growing openness to different types of investment.
“[...] This opens up many opportunities to offer various investment asset classes for diversification, in a bid to reduce volatility risks in the volatile market,” Claudia said in a press statement.
The US has been seeing a surge in the number of retail stock investors following the US stock market’s tremendous growth.
Major tech stocks like Apple, Google, Facebook, and Netflix, have booked a strong performance, which doubled in value since their lowest position during the pandemic.
According to Pluang, the value of Apple’s stock has soared by more than 40 percent in just a year, as the company’s products are in great demand amid the global work-from-home rush. The three major US stock indexes, namely Dow Jones Industrial Average, S&P 500, the Nasdaq Composite, have the world’s largest market cap. The S&P 500, for instance, has a $39 trillion-worth market cap as of Oct. 2021.
In the press statement, Pluang unveiled its plans to launch a Contract For Difference (CFD) investment for US fractional shares. This will enable millions of investors in Indonesia to gain portfolio exposure to US stocks.
“CFD US stocks are suitable for long-term investors. Those with moderate to aggressive risk profiles can also opt for CFD US stocks for a globally diversified portfolio,” Claudia said, while adding the CFD launch would help Pluang become Indonesia’s most comprehensive investment app in terms of asset classes.
Pluang is teaming up with Indonesian futures broker BG Berjangka to launch US stocks in the form of CFDs. PG Berjangka has already secured the PALN license from the Commodity Futures Trading Regulatory Agency (Bappebti). PG Berjangka also manages the Micro e-Mini S&P 500 Index Futures and Micro e-Mini Nasdaq 100 Index Futures on Pluang. All index futures and CFD US stock transactions in Pluang will also be facilitated and guaranteed by state-owned clearing house Kliring Berjangka Indonesia.