With the continuous development of the investment market, ETF (Exchange Traded Fund) has become the choice of more and more investors. An ETF is an exchange-traded fund that trades like stocks, but its investment target is a basket of stocks, bonds, commodities, etc. So, if we want to buy 20,000 yuan in ETF on the market, how much handling fee do we need to pay?

First, we need to understand the related fees for ETF transactions. ETF trading will incur two types of fees, one is trading commissions and the other is management fees. Trading commissions refer to the fees that need to be paid when conducting buying and selling operations, while management fees refer to the fees charged by ETF fund management companies for managing and operating funds.

For transaction commissions, different brokers have different charging standards. Generally speaking, the commission fees for on-exchange ETF transactions will be lower than those for over-the-counter transactions, but the specific charging standards will depend on the brokerage firm. Additionally, commission fees will vary based on the investor’s trading volume. For example, if an investor buys an ETF for 20,000 yuan, the commission fee may be around 10 yuan.

In addition to commission fees, ETFs also need to pay management fees. Management fees are fees charged by ETF fund management companies for fund management operations. They are generally relatively stable, usually between 0.1% and 0.5%. For example, if the management fee of a certain ETF is 0.3%, then investors need to pay a management fee of 60 yuan per year.

Taken together, if an investor buys 20,000 yuan in an on-site ETF, the handling fee may be around 70 yuan. Of course, the specific charging standards also need to be determined by different securities companies. When choosing a securities company, investors need to compare the charging standards of various securities companies and choose a relatively suitable securities company for transactions.

In addition to handling fees, investors also need to pay attention to the trading rules of ETFs on the exchange. ETFs trade during the same hours as stocks, from 9:30 a.m. to 3:00 p.m. Monday through Friday. In addition, investors also need to pay attention to the trading methods of ETFs. There are two trading methods for ETFs, namely limit orders and market orders. A limit order means that an investor sets a specific price when buying or selling, and the transaction will only be completed when the price reaches or falls below that price. Market orders refer to investors buying and selling at the best price in the market after placing an order, without setting a specific price.

In short, ETF is a more flexible and convenient investment method, but investors need to pay attention to relevant fees and trading rules when conducting ETF transactions. When choosing a brokerage firm and trading method, you need to carefully compare them to ensure that you maximize your investment returns.