For example, if I want to subscribe for the Southern 500ETF now, I need to complete 500 stocks in the CSI 500 Index first, and then redeem the corresponding ETF shares with these 500 stocks. Of course, you don't need to buy one of the 500 stocks. At present, many brokerage systems support one-click stock portfolio, and the operation is actually very simple. However, due to the large number of stock portfolios, the subscription threshold is also high. Take the South 500ETF as an example. At present, the net value of the fund is above 5, and the minimum redemption unit is 400,000, so the subscription generally needs more than 2 million funds.
Although ETF has a high redemption threshold, ordinary people can still participate. Because ETFs can be traded directly in the secondary market like stocks, with one hand 100 and hundreds of shares in one hand, which is more suitable for individual investors and more timely.
The first is to spread risks.
Investing in one or two stocks is risky. In case of a "black swan", it may cause huge losses in the short term. ETF is a stock portfolio corresponding to the buy index, and investing in ETF can better spread risks. Take the South 500ETF as an example. The stocks with the highest market value of positions announced in the second quarter of this year only accounted for 0.64% of the fund's net value. In addition, ETF tracks the index to invest and buys whatever is in the index. Positions are basically the same as index stocks, with high transparency.
Followed by high investment.
Ordinary funds generally publish their net value once a day, while in the secondary market, ETF funds provide a quotation every 15 seconds, which can be bought and sold at any time during trading hours, and most ETFs are available on the day of sale. Compared with general funds, ETF has higher investment efficiency.
Finally, the rate is cheap.
Because ETF is a passively managed product, it does not need too much investment and research expenses, so the investment rate of ETF is low. Most ETF management fees are only 0.5% per year, which is about1/3 of active hybrid or equity funds; However, the annual custody rate of most ETFs is only 0. 1%, which is about 1/3- 1/2 of active hybrid or equity funds.
In addition, applying for redemption or trading ETF funds requires a stock account. If you don't have a stock account, you can choose the minion-ETF linked fund of ETF. It takes the target ETF as the main investment target and indirectly tracks the target index. It can be purchased directly on platforms such as banks and fund companies in official website, and the investment threshold is low. For example, the connection fund of South 500ETF, South 500 1 yuan, can be purchased.