What is ETF arbitrage? How do you hedge? ETF arbitrage means that when the transaction price of ETF secondary market deviates from the net value of fund shares, investors can arbitrage among primary market, secondary market and stock spot market to obtain risk-free income.

When the ETF secondary market price is lower than the net profit, buy ETF repurchase in the secondary market and sell the repurchased portfolio securities.

When the ETF secondary market price is greater than the net profit, you can buy portfolio securities, buy ETF shares and sell ETF shares in the secondary market.