The launch of ETF enriches the trading varieties, improves the variety layout of the market, helps to attract more strong stocks of large-cap blue-chip companies to join the market, helps to guide the diversion of savings funds to the securities market, and helps to further deepen product innovation in the market.
2. Increase the investment opportunities of investors.
As an indexed product, ETF trading also provides investors with opportunities to invest in specific sectors, specific indexes, specific industries and even specific regions. Those indexes targeting specific sectors will not only continue to play a role in revealing prices, but also be used as investment tools for investors. Moreover, this kind of ETF without cash management can greatly improve the efficiency of fund assets, avoid the transaction cost and tax burden increased by constantly adjusting the portfolio in response to regular redemption, and help protect the long-term interests of fund investors.
3. The influence of 3.ETF trading on the trading volume of the stock market is uncertain, which may increase market volatility.
The daily trading volume of ETF with redemption right is large, which may lead to an increase in the trading volume of the underlying stocks that constitute the index. However, if some investors use these stocks as part of a diversified portfolio to track the overall market trend, ETF trading may reduce the trading volume of the underlying stocks. The influence of ETF on the trading volume of stock market and stock index futures. In the empirical test, Park and Switzer( 1995), Switzer et al. (2000), Lu and Marsden(2000) also have uncertain results in different markets.
ETF generally adopts the programmed trading mechanism, that is, the stock portfolio of the underlying index is bought and sold in batches. Therefore, under the condition that the capacity of the underlying stock portfolio in China stock market is still limited, the launch of ETF may aggravate the fluctuation of China stock market and have a "helping up and down" effect on the stock market.
4. The launch of 4.ETF is not directly related to the fund's "closed to open".
After the Fund Law was officially implemented on June 20 13, there was no legal obstacle to the "closing and opening" of funds in China.
5.ETF has little influence on the existing or being issued open-end funds.
Although ETF has the advantages of being closed and open at the same time, because it is an index investment fund, the launch of ETF has little impact on the subscription and redemption of open-end stock funds and other varieties, and may only have a certain impact on open-end index funds.