With the continuous development of the capital market, more and more people begin to invest in ETF funds, but many people are confused by the concept of "threshold". So what is the threshold of ETF funds? In fact, the threshold of ETF funds refers to the requirements that investors need to meet in order to be able to buy a specific ETF fund. So what are these requirements? This paper will analyze it from many angles.

I. Types of investors

The first requirement of ETF fund threshold is the type of investor. In China, ETF investors are mainly institutional investors and individual investors. Institutional investors refer to qualified investors who hold institutional accounts such as private equity funds, social security funds, Public Offering of Fund, insurance funds and enterprise annuities. Individual investors need to meet certain investment thresholds. At present, there is no strict limit on the minimum amount of ETF funds held by individual investors in China. The investment threshold only needs to open a securities account through a brokerage firm.

2. Open a securities account

Investors who want to buy ETF funds also need to open securities accounts, apply for domestic registration and settlement companies and custodian banks, and maintain continuous financial transactions. Securities accounts are usually provided by brokers, and investors need to choose a suitable broker to complete the account opening procedures.

Third, risk tolerance.

ETF funds also require investors to make a risk assessment before buying to understand their risk tolerance. The level of risk tolerance will directly affect investors' asset allocation and risk preference. Therefore, investors need to refer to their own risk tolerance before buying ETF funds in order to make scientific investments.

Four. Asset management regulations

According to the asset management regulations of stock exchanges in various countries, individual investors need to have certain financial investment knowledge and risk awareness if they want to invest in an ETF fund. ETF funds are only for qualified investors in the capital market. Therefore, before investing, investors need to fully understand the product attributes, investment strategies, performance, expenses and other related aspects of ETF funds to ensure that they understand and are willing to bear various risks of ETF funds.

To sum up, the threshold of ETF funds involves many aspects, such as investor types, opening securities accounts, risk tolerance, asset management regulations and so on. Investors need to know the risk characteristics and product information of ETF funds according to their own actual situation, make a full risk assessment, and make clear their investment objectives and risk-taking ability, so as to better invest in ETF funds.