Short selling is not allowed. Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can purchase or redeem fund shares from fund management companies, but they must exchange a basket of shares for fund shares or a basket of shares for fund shares.

Investors can buy ETFs in two ways: they can buy from fund managers according to the net value of the fund on that day (the same as ordinary open-end funds), but the minimum share of ETF purchases is usually relatively large, so it is difficult for ordinary investors to buy in this way.

ETF can also be traded directly with other investors on the stock exchange. The trading process is similar to stock trading. The transaction price is determined by both buyers and sellers, which is often different from the net value of the fund at that time (like ordinary closed-end funds).

Extended data:

Advantages of ETF funds:

1, diversify investment and reduce investment risk: passive portfolio usually contains more targets than general active portfolio. The increase in the number of targets can reduce the impact of single target fluctuation on the overall portfolio, and at the same time, it can reduce the fluctuation of portfolio through the different effects of different targets on market risk.

2, both the characteristics of stocks and index funds: For ordinary investors, ETFs can also be split into smaller marketing unit like ordinary stocks and traded in the secondary market of the exchange.

If you earn an index, you make money. Investors no longer need to study stocks and worry about stepping on mining stocks. Before 20 10, there was no short-selling mechanism in China's securities market, so there was a situation of "losing money when the index fell". On April 20 10, stock index futures were opened. Since February 5, 20 1 165438, seven ETF funds have been included in the margin financing and securities lending scope. )

3. Combining the advantages of closed-end and open-end funds: ETFs, like closed-end funds we are familiar with, can be bought and sold on the exchange in the form of small "fund units". Similar to open-end funds, ETF allows investors to purchase and redeem continuously, but when ETF redeems, investors get a basket of stocks instead of cash, and they are allowed to purchase and redeem after reaching a certain scale.

Baidu Encyclopedia-Trading Open Index Fund