Today, we start with ETF trading.

Customers can trade ETFs in two ways: Trading Redemption From a professional perspective: Buying and selling: Trading at "price" in the secondary market through an A-share account.

Redemption: In the primary market, redemption is carried out at "net value" through an A-share or fund account.

Go a little deeper: Trading is easy!

Just like buying and selling stocks, the minimum buying unit is 1 lot (i.e. 100 fund shares), and the minimum selling unit is 1 lot.

On the buying and selling side, ETFs are most proud of their "high efficiency," which is the legendary "T 0 transaction."

For cross-border ETFs, bond ETFs, gold ETFs, and currency ETFs, customers can buy on T day and sell directly on T day; as for stock ETFs, "T 0" cannot be traded at present, but "T 0" can be traded in disguised form.

We’ll talk about this later.

Redemption This is the most unique and interesting thing about ETFs.

First of all, a common sense, ETF fund share subscription and share redemption.

However, the redemption threshold of ETF funds is relatively high, usually hundreds of thousands or millions (professional term: minimum redemption unit).

So girls, if you meet a boy who plays ETF redemption, just marry him.

The biggest difference from ordinary stock funds is that Tiaojiao’s ETF subscription can be purchased free of charge, but it requires a basket of stocks or cash in exchange.

This mechanism ensures small tracking error for the ETF, and to guest officials it seemed like a throwback to the days of barter.

Let’s give an example: Ke Xiaoguan wants to buy Guo Fu Shanghai Composite Index ETF (510210. Boo).

According to the procedure, he had to complete a basket of stocks first, so he checked the fund's latest "subscription and redemption list."

Tip: The so-called "subscription and redemption list" refers to the ETF subscription and redemption list document published by the fund manager before the market opens every day based on the fund's net asset value, investment portfolio and the constituent stocks of the underlying index.

The professional abbreviation is PCF (Portfolio Composition File).

The PCF list of ETFs can be found on the exchange website: Shanghai Stock Exchange PCF list query address: /disclosure/fund/etflist / Shenzhen Stock Exchange PCF list query address: /disclosure/fund/currency/index.html Customers buy stocks based on the PCF list

, found that some stocks were marked "allowed", some stocks were marked "must", and some stocks were marked "prohibited".

Tip: "Allow" means that you can use money to exchange for these stocks, but when you redeem them, you will not be given money, but stocks; "Must" generally refers to some suspended stocks, which customers cannot buy even if they want to.

When redeeming, you will still get your money back.

According to this, the last combination used by Ke Xiaoguan to purchase ETF funds was: 900,000 shares, 100,000 cash, then submitted an application, and finally exchanged it for the corresponding ETF shares.

But in this process, several issues were involved: Question: In order to save trouble, classmate Ke Xiaoguan used cash to replace some "cash replacement" stocks.

Just after he submitted the application, the stock went up.

I would like to ask if the guest officer has made a lot of money?

Answer: Generally speaking, fund companies will charge a certain "cash replacement premium."

For example, if the latest price of a stock is 10 yuan, the fund company may charge a 10% premium (listed on the PCF list), which means it costs 11 yuan to buy the stock.

Replacement amount = number of replacement securities Latest stock price (1 cash replacement premium ratio) Question: Although Ke Xiaoguan paid a 10% premium, he was very distressed because after submitting the application, this part of the stock fell.

I would like to ask if the guest officer suffered a big loss?

Answer: When a fund company gets money from clients to buy stocks, no one knows what the price of these stocks is.

Therefore, after the fund company opens a position, it will calculate a "cash replacement refund" based on the actual opening results.

For example, Ke Xiaoguan bought the latest 10 yuan stock at a unit price of 11 yuan, but when the fund company opened a position, the unit price of the stock dropped to 9 yuan, and the fund company would return the 2 yuan unit price difference to Ke Xiaoguan.

close.

But if the unit price of the stock is higher than the 11 yuan when the position was established, the fund company will also notify the client to make up for the underpayment.

Q: Use a basket of stocks to buy ETF shares.

Are the two values ??really equal?

Answer: This is not necessarily the case.

Due to tracking errors and other reasons, it is very likely that the net asset value of the ETF is not equivalent to the market value of a basket of securities calculated based on the closing price of the day, and the difference between the two is the "cash difference."

But when Kexiaoguan subscribes, no one knows how much the difference is. The fund company can only freeze the "estimated cash difference" in advance. After the actual cash difference is calculated, it will be calculated based on the difference between the estimated cash difference and the actual cash difference.

, more refunds and less supplements.