Spot bitcoin exchange trading fund
ETF is the abbreviation of Exchange-traded Fund, the full name in Chinese is "Transactional Open Index Fund", which is an open-end fund listed and traded on the exchange, and the fund share is variable. So it is also called "exchange traded fund". The essence of ETF is index fund, and when the index rises, it can make money. This is a simple and direct investment method. At the same time, it can be traded on the exchange like buying and selling stocks, but the object of trading is not a single stock, but a basket of stocks of the underlying index. Purchase and redemption must use a basket of stocks for fund shares or use a basket of stocks for fund shares.
The difference between stock index futures and ETF
First, stock index futures usually trade the future value of the index in the form of margin, which has an important leverage effect and high efficiency in the use of funds, while ETF is currently trading the index in cash, and there is no leverage effect.
Second, the minimum transaction amount is different. The minimum contract margin for each stock index futures is 1 10,000 yuan, while the minimum trading unit of ETF is the first hand, and the corresponding minimum amount is about 100 yuan.
Third, buying and selling stock index futures does not include the dividends of index constituent stocks, while during the holding of ETF, the dividends of the underlying index constituent stocks belong to investors.
Fourth, stock index futures usually have a definite duration, the maturity date needs to track the index, and new stock index futures contracts need to be bought again, while ETF products have not been renewed.
Fifth, because investors have different expectations for the broader market.