Current location - Trademark Inquiry Complete Network - Futures platform - Operation principle of Nasdaq exchange trading fund
Operation principle of Nasdaq exchange trading fund
Excuse me, do you want to ask the question "What is the operating principle of Nasdaq etf"? Its operating principle is to track the index by holding futures and swap contracts.

Generally speaking, the operating cost of ETF is lower than that of index funds and actively managed funds. Since ETF investors trade through securities firms, ETF will not incur the management expenses incurred by the fund in communication, customer service and account record keeping, which enables ETF to keep the total expenditure ratio at a low level. The saved capital does not need to be used to pay the investment cost, and can be returned to investors in the long run.

Nasdaq ETF exists in two markets at the same time, one is called the primary market, where several institutional investors add and redeem ETFs, and the other is the secondary market, where individual investors buy and sell ETFs. ETFs and * * * are similar to funds, except that ETFs are listed and traded on regulated stock exchanges, usually through brokers or brokerage platforms (Shenzhen Stock Exchange and Shanghai Stock Exchange).