What are the lessons of buying ETF?
1 and ETF are very risky.
Some investors buy blindly without knowing anything, and some watch others buy ETFs to make money, just follow the trend and then buy them at a high price. Watching them keep falling, they can't help but sell and lose money.
In particular, the volatility of ETFs in some industries is not less than that of stocks, and it is not uncommon to lose 5 or 6 points a day.
2, like short-term trading
When buying a fund, the redemption fee of the OTC fund is related to the holding time. If the holding time is short, the redemption rate will be higher. For example, holding a fund for more than 7 days generally requires a redemption fee, while the on-site fund is only a few ten thousandths, so the transaction is very flexible. Some investors can't help it. If they want to sell on the same day, it is easy to fall into the trap of short-term trading and it is difficult to make money.
What are the precautions for buying an ETF?
The liquidity of 1.ETF funds is very important. If the daily trading volume of an ETF is small, the bid-ask spread may be relatively large, resulting in higher costs.
2. When choosing ETF funds, we should also pay attention to the tracking error of ETF funds. Because ETF funds are index funds, the performance of funds depends on the index, so it is very important to track the error of the index.
3. If the OTC share of ETF is limited, it may lead to a discount or premium in the on-exchange trading price, which will also increase the trading risk.