1. What is an ETF?
ETF is an "exchange traded fund"
Fund), also known as "transactional open index fund". It is a special open index fund.
First of all, using the advantage that open-end funds can purchase and redeem can change the fund scale;
Secondly, like closed-end funds, they can be listed and traded in real time, and investors can buy and sell ETFs in the secondary market just like closed-end funds or stocks;
Finally, ETF has an arbitrage mechanism between the primary market (purchase and redemption) and the secondary market (buy and sell), so it can avoid the defect of long-term "discount trading" of closed-end funds, and the price of ETF is basically the same as the net value.
Therefore, it can also be said that ETF is an "upgraded" index fund, which is equivalent to turning a basket of index stocks into "large-cap stocks", making it easier for investors to trade and invest.
2. The proportion of ordinary open-end funds (including ordinary index funds) investing in stocks shall not exceed 95%. Do ETFs need to comply with this restriction?
No need. On the contrary, the proportion of ETF investment in the underlying index stocks is not less than 95% of the net asset value; Under normal circumstances, the proportion of ETF will reach 99% or even higher.
3. Is there a difference between 3.ETF and ordinary open-end equity funds in transaction rates and the time when funds arrive?
There are differences.
For ordinary open-end stock funds, the subscription rate is generally 1.5% (decreasing amount) and the redemption rate is 0.5% (decreasing holding years); Upon redemption, the funds will arrive within 3 to 7 working days.
If the ETF is traded by subscription or redemption, the subscription fee and redemption fee shall not exceed 0.5%. The stocks redeemed on the same day can be sold on the same day, and the sold funds can continue to be used in the market on the same day. If it is not used, the funds will be available on the next trading day.
If ETFs are traded in the secondary market like stocks, it will be cheaper: the unilateral commission will not exceed 0.3%, and stamp duty will be exempted. The sold funds can continue to be used in the market on the same day. If it is not used, the funds will be available on the next trading day.
4. The subscription and redemption of open-end funds shall be subject to the net fund value calculated after the closing of the trading day; If ETF is traded in the secondary market, should the price be calculated according to the net value of the fund after the close of the day?
That's not true.
Like stocks and closed-end funds, when trading in the secondary market, ETFs trade according to the intraday market price and do not need to wait for the closing net value.
5. Is it necessary to pay stamp duty when trading ETFs in the secondary market?
Don't hand it in.
6. Under the existing trading system, can investors realize T+0 trading with the help of ordinary index funds, stocks, LOF or ETFs?
Ordinary index fund, the share subscribed on T day, confirmed on T+ 1 day, redeemable on T+2 day; Generally, the funds redeemed on T day will arrive in T+3 to 7 working days; Therefore, T+0 transaction cannot be realized.
Stock trading, T+0 trading cannot be realized at present.
LOF, the share subscribed on T day, confirmed on T+ 1 day, and sold on the exchange on T+2 day; The funds redeemed on T day will generally arrive on T+3 day. In addition, the arbitrage trading of LOF takes 2 trading days and T+0 trading cannot be realized.
ETF, the share purchased on T day, can be sold on the same day; Stocks redeemed on T day can be sold on the same day. Therefore, investors can buy stocks and purchase ETF shares on T day, and sell them in the secondary market on T day; Or the ETF shares bought and redeemed on T day can be sold on T day, thus realizing T+0 trading.
It should be pointed out that ETF investors must have a certain capital scale to realize T+0 transactions, because ETF subscription and redemption generally have minimum share requirements, such as 500,000, 900,000, 6,543,800+and 3 million.
7. How to subscribe for ETF during the issuance period?
It can be subscribed in cash or exchanged for designated shares for purchase.
Online cash subscription: On the online cash sale date, 0 yuan can buy 65,438+0,000 copies or an integer multiple of 65,438+65,438+0 copies, and the subscription fee does not exceed 65,438+0%. The trading broker designated by investors only needs to be an exchange member with the qualification of selling open-end funds on a commission basis.
Off-line stock subscription: On the off-line stock trading day, the designated constituent stocks in the underlying index tracked by ETF will be replaced by ETFs, starting from 1 000, and the increase unit for exceeding 1 000 is 1 000 and its integer multiple. The trading broker designated by the investor shall be qualified to sell ETF on a commission basis.
Off-line cash subscription: 65,438+0,000 copies or integral multiples thereof can be subscribed in cash at the brokerage outlets every working day during the issuance period, 65,438+65,438+0 copies are 0 yuan, and the subscription fee does not exceed 65,438+0%. The trading broker designated by the investor shall be qualified to sell ETF on a commission basis.
8. 1 Can stocks be exchanged for ETFs at any time?
No, only during the subscription period of ETF. After the establishment of the fund, investors should make a basket of stocks according to the "list of purchase and redemption" published by the fund manager every trading day before the purchase.
Only when ETF is issued, investors are allowed to exchange a single stock for ETF shares, which can generally be exchanged from 1000 shares.
However, the shares convertible into ETF shares should generally be those designated by the fund manager in the underlying index components tracked by ETF.
9. Why are some people willing to exchange a constituent stock of the underlying index of ETF for ETF during the subscription period?
The margin conversion rate of ETF margin financing and securities lending is higher than that of stocks
Trading stocks directly to buy ETFs is cheaper than selling stocks and then subscribing to ETFs.
Holding a large number of shares, if sold directly in the secondary market, will have a greater impact cost.
Look at the market outlook, but don't look at the stocks you hold.
10. How can the conversion rate of various investment products cover the margin in margin financing and securities lending?
According to the Detailed Rules for the Implementation of Pilot Margin Trading in Shanghai and Shenzhen Stock Exchanges, the mortgage ratio rules for margin trading and securities lending of various varieties are as follows:
11.How to buy ETF shares after the issuance period of ETF?
Two ways: cash purchase, ETF purchase in the secondary market of the exchange after listing, and each transaction is 1 lot (100 ETF * transaction market price of each ETF). For example, the underlying index tracked by an ETF is above 3,000 points, the transaction price of each ETF in the secondary market is above 3 yuan, and the minimum amount of funds required for buying in the secondary market is only 300 yuan. And so on.
Another way is to buy ETF shares from fund managers with a basket of stocks after the ETF is open for subscription.
12. How do investors buy ETFs from fund managers?
According to the "Purchase and Redemption List" published by the fund manager every trading day, make a basket of stocks and purchase them at the ETF brokers (primary dealers). ETF subscription/redemption generally has a minimum share starting point.
13. What are the contents of the subscription and redemption list of ETF?
The announcement of T-day subscription and redemption list includes securities data of each component in the portfolio securities corresponding to the minimum subscription and redemption unit, cash substitution, expected cash portion on T-day, cash difference on T- 1 day, net value of fund shares and other related contents.
14. What is the minimum subscription and redemption unit of ETF?
That is, the starting point of ETF's minimum subscription/redemption share, also known as "minimum subscription/redemption unit" or "physical subscription base". The "minimum purchase and redemption unit" of each ETF may be different. For example, the "minimum subscription and redemption unit" of SSE dividend ETF is 500,000 fund shares, while the "minimum subscription and redemption unit" of SSE180TF is 3 million fund shares. Due to the large amount of the "minimum purchase and redemption unit", under normal circumstances, only institutional investors such as brokers and individual investors with large assets can participate in the "purchase and redemption" of ETF.
15. Why is it that buying an ETF is equivalent to buying a basket of stocks?
ETF is an indexed investment, which tracks and copies an index and consists of some constituent stocks according to a certain weight and proportion. Buying ETF is equivalent to buying a "basket of stocks" composed of these stocks according to a specific weight, which is equivalent to a "big stock".
16. Is the subscription and redemption of ETF the same as that of ordinary open-end funds?
It's different.
ETF needs to use a basket of stocks to purchase; ETF redemption, investors also got a basket of stocks. If you need money, investors can sell these stocks in the secondary market on their own, redeem them on the same day, and throw out this basket of stocks on the same day, and the funds will arrive on the next working day.
Open-end funds need to be bought in cash, and then the fund manager decides whether to buy these funds into stocks and which varieties to buy according to the situation; At the time of redemption, the fund manager will transfer the redemption funds into the account designated by the investor within 3-7 working days after the redemption date.
17. when trading in the secondary market, can ETF be a "hanging basket head" like stock trading?
Yes, you can.
18. What are the general principles of ETF trading, subscription and redemption?
When buying, selling, purchasing and redeeming fund shares, the following provisions shall be observed:
The fund shares purchased on the same day can be sold on the same day, but cannot be redeemed;
The fund shares bought on the same day can be redeemed on the same day, but they cannot be sold;
Securities redeemed on the same day can be sold on the same day, but they may not be used to purchase fund shares;
Securities bought on the same day can be used to buy fund shares on the same day.
19. What is the net value of ETF fund shares?
Like general open-end funds, the net fund share (NAV) of ETFs refers to the value of the securities portfolio (including cash) represented by each ETF, that is, the total fund share divided by the net fund asset value.
20. What is the ETF reference unit net value (IOPV)?
The individual optimized portfolio value (IOPV) of ETF is an approximation of the real-time unit net value of ETF calculated by the exchange, which is convenient for investors to estimate whether the transaction price of ETF deviates from its intrinsic value.
In addition to revealing the index every 15 second, the exchange will also reveal the estimated net unit fund share (IOPV) of ETF in the same time interval for investors' reference. If there is a big difference between the reference net value of the stock and the current trading price of the market, investors will have the opportunity to arbitrage.
2 1. What can retail investors do with ETFs?
Long-term investment: low cost and economical investment.
Participate in the bull market: the tracking index has a small error and is basically synchronized with the stock index.
Participate in the volatile market: you don't need to choose individual stocks, you can easily grasp them with ETF, and you are also exempt from stamp duty.
Escape from the bear market: when it falls sharply, use the secondary market to leave quickly, without waiting for the redemption of the closing net value.
Asset allocation, grasp the hot spots of rotation: take the broad-based index ETF as the core asset allocation, and then grasp the hot spots of different markets with the classified index ETF.
22. What can institutional investors do with ETFs?
asset allocation
Cash management, easy to keep up with performance benchmarks.
Using stock index futures products to hedge for risk management.
Arbitrage operation
23. What is the relationship between the subscription and redemption mechanism of ETF and arbitrage?
The subscription and redemption mechanism of ETF is the essence of this product structure, and it is this mechanism that forces the ETF price to be consistent with the net value, greatly narrowing the discount and premium range of ETF. In most cases, arbitrage generally requires physical purchase and redemption and secondary market transactions. It is precisely because of this arbitrage mechanism that institutions are willing to actively participate in ETF transactions, thus driving the ETF market to be active. When arbitrage activities are active, the discount premium space of ETF will gradually shrink; When the quotation of ETF in exchange market tends to be consistent with the net asset value, it will strengthen the willingness of ordinary small and medium-sized investors to invest in ETF, and then promote the overall ETF market to develop more vigorously. Therefore, this arbitrage mechanism is a very key factor to promote institutions and small and medium-sized investors to actively enter the market, and it is also an indispensable factor to shape a successful ETF.
24. What's the difference between investing in ETFs and investing in stocks?
In terms of trading methods, ETFs are exactly the same as stocks. As long as investors have securities accounts, they can buy and sell ETFs at any time, and they can also be "hanging baskets", which is quite convenient and highly liquid.
The advantages of ETF over direct investment in stocks are: 1, and there is no stamp duty like closed-end funds. 2. Buying an ETF is equivalent to buying an index portfolio, and there is no need to bear the unsystematic risk of individual stocks. 3. The investment portfolio is highly transparent.
25. What is the difference between ETF and closed-end fund and general open-end fund?
The essential difference between ETF and closed-end fund and open-end fund lies in:
1, ETF trading mode is different from general open-end funds. It can be listed and traded on the stock exchange, just like buying and selling stocks.
2. The subscription and redemption mechanism of 2.ETF is different from the general open-end fund. Its subscription and redemption must use a basket of stocks (or a small amount of cash) for fund shares or use a basket of stocks (or a small amount of cash) for fund shares. Because of this special physical purchase and redemption mechanism, investors can carry out arbitrage transactions when there is a difference between the transaction price of ETF secondary market and the net value of fund shares.
3. The price performance of 3.ETF is different from that of general closed-end funds. The arbitrage brought by the physical purchase and redemption mechanism ensures that the market price of ETF is basically consistent with the net value of its fund shares, thus avoiding the discount problem that is common in closed-end funds.
26. What's the difference between ETF and ordinary index fund?
At present, the general index funds in China are mainly open index funds, but there are also a few closed index funds. The biggest difference between ETF and general index fund is small tracking error, convenient and simple operation and low cost.
27. What are the advantages of investing in ETFs compared with ordinary index funds?
ETF has all the benefits of indexed investment, such as diversification, good transparency and simple operation. In addition, due to the particularity of ETF trading mode, ETF has more advantages than ordinary index funds:
Tight tracking index: the tracking index of ETF is tighter than that of ordinary index funds, and the tracking error is smaller.
More powerful: ETF has functions that ordinary index funds do not have, such as arbitrage.
Low operating costs: Compared with general closed-end or open-end funds, ETF has lower operating costs such as management fees and custody fees. In addition, ETF's unique physical purchase and redemption mechanism helps to reduce the operating costs of ETF funds.
Convenient trading: ETF trading also combines the characteristics of stock trading and can be traded directly in the secondary market. Compared with the general open index fund, using ETF for index investment can be traded in real time, and the price can be grasped at any time, which is more flexible.
Open and transparent portfolio: ETF funds publish their portfolios every day after the opening period, which is more transparent than ordinary index funds.
Low transaction cost: the transaction cost of ETF funds is lower than that of ordinary open index funds. The purchase and redemption cost in the primary market does not exceed 0.5%, and the transaction cost in the secondary market does not exceed 0.3%, which is exempt from stamp duty.
28. Will ETFs have a large discount premium like closed-end funds?
Different from closed-end funds, when ETF has a discount premium, arbitrageurs are expected to use the "physical purchase and redemption" mechanism to gradually eliminate the spread. This unique internal mechanism can compress the discount and premium space of ETF in a very small range.
29. What is the relationship between ETF and the underlying index?
In order to make the market price of ETF intuitively reflect the tracked target index, product designers deliberately linked the net value of ETF to the stock price index at the beginning of product design, and set the unit net value of ETF as a certain percentage of its target index. In this way, by observing the current position of the index, investors can directly understand the gains and losses of investing in ETFs and seize the opportunity to trade.
In addition, under special circumstances, if the market price of ETF cannot be directly linked to the tracked index, generally speaking, the daily net growth rate of ETF is similar to that of the underlying index.
30. What is the main basis for choosing to invest in ETF?
The key to the success of ETF lies in the index it tracks, that is, the "target index" of ETF. The choice of the underlying index is one of the important factors that affect the success of ETF products. ETF's "underlying index" is generally required to be well-known, representative of the market, with good liquidity, stable preparation, objective transparency and strong investment.
3 1.ETF summary:
ETF is an upgraded index fund, which is equivalent to turning a basket of index stocks into "big stocks" for trading.
ETF is an open-end fund, which can be purchased and redeemed, and its scale can be changed.
ETF, like closed-end funds, can be listed and traded, but it avoids the defect of "discount trading" of closed-end funds.
Trading ETFs in the secondary market has lower transaction costs than ordinary open-end funds; The funds will arrive on the next working day, and the efficiency of fund use is higher than that of ordinary open-end funds.