ETF trading can adopt T+0 fast trading mode-buy on the same day (some can be sold on the same day) and redeem on the same day. The commission of ETF floor trading is the same as that of ordinary stock trading, which does not exceed three thousandths of the transaction amount and does not charge stamp duty.

The most special feature of ETF is that the fund shares are redeemed by share subscription and share redemption at the consideration of portfolio securities or cash. In other words, the purchase and redemption can use portfolio securities, that is, one hand pays ETF shares and one hand pays a basket of securities.

Extended data:

Precautions:

ETF allows investors to keep buying and redeeming. Trading at any time is convenient and fast, and it is proposed that open-end funds can only be opened once a day, with only one trading opportunity. When ETF is redeemed, it is to deliver a package of shares without keeping cash, which is convenient for managers to operate and can improve the management efficiency of fund investment.

The fixed investment of the fund is based on years, which may lead to short-term losses. As long as we look at the long-term returns, etf fund trading is similar to stock trading, either trend trading or waiting for a good market. It is not appropriate to disperse the fixed investment and concentrate on one or two.

Etfs can be traded in very small fund units. Similar to closed-end, they can be listed and traded like stocks, and the number of transactions is not limited.

Baidu encyclopedia -ETF fund