What is an ETF fund?
ETF is a transactional open index fund. ETF is an open-end fund that is specially listed and traded on the exchange, and its fund share can be changed at any time. Etf itself is an index fund, but the only difference from traditional index funds is that ETF can be listed and traded, and investors can operate like buying and selling stocks. Etf absorbs the advantages of open-end funds and closed-end funds, and can be traded in real time on the same day, and investors can freely purchase and redeem. Only when investors purchase or redeem such funds, they need to exchange a basket of stocks (or a small amount of cash) for fund shares, or they need to exchange a basket of stocks (or a small amount of cash). Etf funds have this special subscription and redemption rule, which enables investors to earn the difference between the transaction price and the net value of the fund unit when trading in the secondary market, and continue arbitrage trading.