ETF refers to on-site funds, sometimes called stock ETF. So is the stock ETF a fund or a stock? What is the difference between stock ETF and fund or stock? The following small series has prepared relevant content for everyone, for reference only, I hope it will help everyone!

Stock ETF is an investment tool designed to track the performance of a specific stock index. Stock ETF has the characteristics of both funds and stocks. It is a fund, but it can be listed and traded on the stock exchange.

The working principle of stock ETF is as follows:

1. Portfolio: The portfolio of a stock ETF usually contains a basket of stocks, representing a specific stock index, such as the SSE 50 Index or the CSI 300 Index. The goal is to replicate the performance of the index as much as possible by holding stocks similar to the constituent stocks of the index.

2. Tracking index: The goal of stock ETF is to closely track the performance of specific stock indexes, whether in domestic or international markets. ETF tracks the index by buying its constituent stocks to keep its similarity with the index.

3. Listing on the stock exchange: Stock ETFs can be listed and traded on the stock exchange like ordinary stocks. Investors can buy and sell ETF shares through brokers during the listing of the exchange, and the price will be implemented immediately.

Stock ETF not only has the advantages of traditional open-end funds, but also has the flexibility and liquidity of stock trading. Their characteristics are as follows:

1. Diversify risk: Stock ETFs diversify their portfolios by holding a basket of stocks, thus reducing the risk of individual stocks. This enables investors to gain wider market participation at relatively low cost.

2. Strong liquidity: Stock ETFs can be listed and traded on exchanges and can be bought and sold at any time. Investors can buy and sell stock ETFs at market prices at any time on the trading day according to their own needs and market conditions.

3. Low cost: Stock ETFs usually have low management costs, which is due to their passive management characteristics. Compared with actively managed funds, the management cost of stock ETF is lower.

The difference between ETF fund and equity fund

1, the stock risk is more concentrated.

The investment risk of stocks is relatively concentrated, and ETF, as a basket of securities portfolio, can be dispersed to some extent. ETF pays more attention to the combination of investment targets and is more dispersed.

2.ETF investment costs are lower.

In the process of investment, transaction fees and handling fees are extremely important. Since ETF transactions are exempt from stamp duty of one thousandth, the handling fee of ETF saves 50% on the transaction cost of stock subscription and redemption. In this way, ETFs can invest at less cost.

3.ETF has higher investment efficiency.

For ETFs, most types of ETFs can directly or indirectly realize "T+0" transactions. For example, bonds, gold, currencies and cross-border ETFs have all implemented "T+0" transactions; However, the bought stocks cannot be sold on the same day, and the "T+0" transaction cannot be realized.

4. ETFs can be purchased and redeemed in the primary market.

ETFs can be traded not only in the secondary market, but also in the primary market, while stocks can only be traded in the secondary market after listing.

5.ETF has a wider investment scope.

The main investment object of stock funds is stocks, while ETF funds have a larger investment scope. Besides stocks, they can also invest in other investment markets, such as money and gold.

Is the stock ETF a fund or a stock?

ETF means transactional open index fund. It is not a stock, but a stock portfolio. ETF mainly constructs its own stock portfolio according to the rules of constituent stocks in some stock indexes, so as to track an index. The characteristic of ETF is that it can be bought and sold in the secondary market, and can also be purchased and redeemed in the market.

Like stocks, ETFs can also be traded in the secondary market, and the trading rules are not much different from those of stocks. However, compared with individual stocks, ETFs are theoretically less risky, because ETFs are stock portfolios.

ETF can also be purchased and redeemed in the market, but it needs to meet a certain threshold. Generally, the initial share is 500,000 shares or 6,543.8+0,000 shares, and there is no direct cash purchase and redemption. The second is to use the share corresponding to ETF share.

What is the difference between stocks and fund ETFs?

1, the risk-return ratio is different: the risk-return ratio of etf funds is lower than that of stocks.

2. Different issuers: etf funds are issued by fund companies; Stocks are issued by listed companies.

3. Different transaction costs: etf fund transactions only need to charge commission fees; While stock trading requires commission, stamp duty and transfer fees.

4. Different trading rules: bonds, gold, currencies and cross-border etf funds are subject to T+0 trading, while other etf funds are subject to T+ 1 trading; The stock trading time is T+ 1.