As April approaches, Children's Day is on the horizon. Amidst the trend of declining birth rates, children are cherished by their parents more than ever. With an increasing variety of financial products and the prevalent concept of early financial planning, more and more parents are not only saving for their own retirement but also allocating funds for their children, investing in stocks or ETFs, aiming to accumulate wealth for them.

According to statistics from the TDCC's Big Data Platform, as of the end of February 2024, the number of children under the age of 12 with securities accounts reached 270,000. Among them, approximately 200,000 children have accounts with remaining balances, with an average balance of over 370,000 NT dollars per person. Calculated from 2021, the total balance of children investors has risen from 77 billion NT dollars to 100.9 billion NT dollars by February 2024, marking a 31% growth. This indicates that parents are increasingly prioritizing financial planning for their children.

Regarding investment diversification, parents, to spread investment risks, hold an average of as many as 10 different securities in their children's investment portfolios. Moreover, parents prefer investing in ETFs that track a basket of stocks over investing in individual stocks. The top 10 holdings in children's investment portfolios are: Cathay Sustainability High Dividend ETF, Yuanta/P-shares Taiwan Dividend Plus ETF, Yuanta/P-shares Taiwan Top 50 ETF, E.SUN Financial Holding Company, Ltd., China Development Financial Holding Corp., China Steel Corporation, Fuh Hwa Taiwan Technology Dividend Highlight ETF, Taiwan Semiconductor Manufacturing Co., Ltd., Capital TIP Taiwan Select High Dividend, and Taishin Financial Holding Co., Ltd., highlighting the importance parents place on diversified and stable investment strategies for their children.

Examining changes in stock holdings over the past year, the top 10 new investments in children's securities accounts are all ETFs, including Fuh Hwa Taiwan Technology Dividend Highlight ETF, Capital TIP Taiwan Select High Dividend, Cathay Sustainability High Dividend ETF, Yuanta/P-shares Taiwan Dividend Plus ETF, Yuanta U.S. Treasury 20+ Year Bond ETF, and Fuh Hwa FTSE Mortgage REITs ETF. ETFs focusing on stock dividends or bonds have almost become standard components of children financial planning.

Finally, in addition to investing in a round lot, parents also prefer odd-lot trading for their children's financial planning. The top 10 fractional share holdings in children's accounts include Taiwan Semiconductor Manufacturing Co., Ltd., Yuanta/P-shares Taiwan Top 50 ETF, Cheng Loong Corporation, Shan-Loong Transportation Co., Ltd., Yuanta/P-shares Taiwan Dividend Plus ETF, China Development Financial Holding Corp., TRK Corporation, Hua Nan Financial Holdings Co., Ltd., Cathay Sustainability High Dividend ETF, and CTBC Financial Holding Co., Ltd.. Only three of these are ETFs, with individual stocks being predominant. This demonstrates that besides ETFs, parents also favor fractional investments in high-priced, leading, and financial stocks as their preferred choices for their children's financial planning.

Whether preparing education funds for their children or as gifts for their adulthood, by participating in Taiwan's stock market and carefully selecting suitable stocks for long-term planning, parents are able to turn their love into the most practical form of care.

Source：TDCC Big Data Platform