First of all, let's point out the word "characteristics". The characteristics are based on some personalized factors in the horizontal comparison in the market, and there is no intention of praise or blame. The use of any tool is a decisive factor for the users themselves. Give the rookie a sword leaning on the sky, and the monk who sweeps the floor will take a bamboo branch in a few seconds. ...
1.ETF is essentially a fund, and the gap between market price and net value is very small, so there are opportunities for cross-market arbitrage in the primary market and the secondary market from time to time. Regarding the difference between the market price and the net value, the management funds will always pay attention to the discount phenomenon and do ETF arbitrage. Now ETF arbitrage is a very common trading business, and a large number of arbitrage participants basically put an end to the possibility of operating the market. Any subjective behavior against the market will be reversed by arbitrage participants. Therefore, for traders who only participate in the ETF secondary market, they basically do not need to consider non-market risks and insider trading, but only need to make a good judgment on the market trend. It is operational logic to follow the index, and other non-market factors are not considered for the time being.
2.ETF is different from ordinary open-end funds. In the secondary market, the transaction cost of ETF is very low, and ETF has no stamp duty! ! ! Because ETFs count as funds on trading varieties. At the same time, if stock index futures and exchange stock options are combined as a long-term investment portfolio. It is basically possible to increase the excess return under the condition of not less than the average market rate of return. Take the long-term dividend ETF fund as an example, the cash dividend distribution between 2.8 and 3.5 can be directly locked into the fixed income part. Hedging transaction as a hedge against non-market risks. Trend control positions, or do industry analysis and configure industry ETFs as excess returns. In fact, investment is also an arithmetic method.
3.ETF closely follows the index or sector index or industry index. The large index ETF is synchronized with the market index. This feature actually solves the non-market risk and avoids the incident of individual stocks stepping on thunder and black swan, which is equivalent to reducing the leverage in individual stock trading. At this level, the characteristics of ETF are more obvious. ETF is a good allocation tool, and the key is to avoid the risk of individual stocks and reduce the burden of stock selection. Now there are more and more stocks on the market, and the industry knowledge needed for stock selection is too complicated. The classification of dozens of large industries and the subdivision of hundreds of industries need to be familiar with. In addition to large fund companies and large brokers, research institutes can also bear the cost of research teams with hundreds of people. Ordinary financiers and individuals are not qualified for this job.
4. Regarding the excess return of ETF, we are actually doing a good job in basic configuration. Another feature of ETF for ordinary stocks is to increase leverage to actively control excess returns or stabilize returns. Because ETF is two financial targets, if the market enters a rapid rising stage, these two financial accounts will be used for financing operations. If the market is in a downward trend or weak market, you can use the general trend operation and the corresponding stock index futures and individual stock options to hedge transactions. And don't forget, ETF can realize T+0 trading through arbitrage trading in primary market and secondary market. Now it is difficult for two financial accounts to do something.