ETF invests according to the constituent stocks and weights of the index, and the position is close to 100%. However, although the index LOF is also configured according to the index, it usually reserves not less than 10% in cash for fund redemption. According to the disclosure of fund assets, ETF will disclose the portfolio of assets in the daily purchase and redemption list, so as to facilitate investors to know the investment and operation of the fund in time. LOF does not need to disclose its portfolio every day, but only once every quarter.

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Precautions:

Get rid of greed. Invest in index funds as long as possible. As long as the economy keeps growing, the stock market will keep rising. But it can't be the same. During the bull market, stocks rose rapidly, and stock index funds made good returns. Don't be greedy. Settling down is also an option.

In the choice of funds, the Bank Information Port advises investors to choose large index funds and old index funds. Look at the recent ranking of the fund first, and then see if the ranking is relatively stable in two or three years. The index fund with smaller tracking error is preferred. The smaller the tracking error, the stronger the management ability of fund managers, which is more in line with the essence of index funds.

Baidu encyclopedia-index fund

Baidu encyclopedia -ETF