ETF is the abbreviation of exchange traded fund, that is, "transactional open index securities investment fund", referred to as "transactional open index fund", also known as "exchange traded fund". ETF is a new type of open-end fund that appeared in the United States in recent years. It comes into being with the development and perfection of combinatorial trading and programmed trading technology. Investors can complete a portfolio transaction at one time by issuing a single trading order. The emergence of this combination trading technology not only saves trading time and reduces trading costs for block traders, but also provides strong technical support for the birth and operation of ETF. From that day on, Unit net value (yuan) and cumulative net value (yuan) growth rate (%) 2010-4-2 0.7642 4.2723 0.59% 2010-410.7597 4.25961 0.7503 4.2330 -0.50% 20 10-3-30 0.7546543 8+0 4.2437 0.35% 20 10-3-29 0.75 15 4.2364 2.09% 20 10-3-26 0.736 1 4. / kloc-0/929 1.22% 20 10-3-25 0.7272 4. 1677 -6 5438+0.29% 20 10-3-24 0.7367 4. 1946 0.34% 20 1 0-3-23 0.7342 4. 1875 -0.65% 20 10-3-22 0.7390 4.20 1 1 0.6 1% 2 0 10-3- 19 0.7345 4. 1 884 0.52% 20 10-3- 18 0.7307 4. 1776 -0.08% 20 10-3- 17 0.73 13 4. 1793 2.07% 2 0 10-3- / kloc-0/6 0.7 165 4. 1375 0.62% 20 10-3- 15 0.7 12 1 4. 125 1 - 1.55% 20 10-3- / kloc-0/2 0.7 233 4. 1567 - 1. 15% 20 10-3- 1 1 0.73 17 4. 1805 -0.46% 20 10-3- 1 0 0.735 1 4. 190 1 - 1.04% 20 10-3-9 0.7428 4.2 1 18 0.38% 20 10-3-8 0.7400 4.2039 0.58% 20 / Kloc-0/0-3-5 0.7357 4.19180.38% 201-3-4 0.7329 4.1838-1.78%. Specifically, ETFs have the following characteristics: (1) The issuance and redemption of ETFs are only for institutional investors, not for individual investors; (2) Investors usually use a basket of securities instead of cash when purchasing and redeeming ETFs; (3) Retail transactions of ETFs are conducted at the market price during the normal trading hours of the stock exchange where ETFs are listed. For individual investors, they can buy and sell ETFs (4) 4) ETFs in the secondary market at any time, just like buying and selling stocks and closed-end funds. The transaction price of ETFs in the secondary market is very close to its unit net value, and generally there will be no big discount or premium. (5)ETF takes a market index as the target index, and tracks the target index by completely copying or statistical sampling, so as to obtain a return on investment close to the target index. The investment mode of ETF is different from the traditional securities investment fund. Traditional active stock investment funds mainly rely on the analysis of stocks by fund managers to make trading decisions. The method of ETF is completely different. Fund managers do not make buying and selling decisions according to their personal intentions, but passively decide the stocks they invest in according to the composition of index constituent stocks, and the proportion of investment stocks is consistent with the weight of index constituent stocks. Each ETF tracks a specific index, and the tracked index is the ETF's "target index". The "underlying index" of general ETF requires popularity, market representativeness, good liquidity, stability, objectivity and transparency when compiling. For example, the SSE 50 index meets the relevant requirements of ETF products and is suitable as the "target index" of the first ETF product in SSE. The net price of ETF can be dynamically announced in real time by the exchange market disclosure system together with the underlying index, and ordinary investors can buy and sell synchronously according to the fluctuation of the index during trading hours, thus realizing the dream of many people to "make money as soon as they earn the index". The trading of ETF is exactly the same as the trading of stocks and closed-end funds, both of which buy and sell fund shares among investors. Investors can use the existing Shanghai securities account or fund account for trading without opening any new account. When the arbitrage activity in the ETF market of the exchange is more active, the discount and premium space of ETF will gradually shrink; When the quotation of ETF in exchange market tends to be consistent with the net asset value, it will strengthen the willingness of ordinary small and medium-sized investors to invest in ETF, and then promote the overall ETF market to develop more vigorously. Therefore, this arbitrage mechanism is a key factor for institutions and small and medium-sized investors to actively enter the market, and it is also an indispensable factor for shaping a successful ETF. ETF is the abbreviation of Exchange Traded Fund in English, literally translated as "exchange traded fund" (in fact, this name was often used in China before), but in order to highlight the connotation and essential characteristics of this financial product, ETF is now generally called "transactional open index fund". Essentially, ETF is a special type of open-end fund, which combines the advantages of closed-end fund and open-end fund. Investors can buy or redeem fund shares from fund management companies, and at the same time they can buy and sell ETF shares at market prices in the securities market like closed-end funds. However, the subscription and redemption of ETF must be exchanged for fund shares with a basket of stocks, or exchanged for fund shares with a basket of stocks, which is one of the main characteristics that ETF is different from other open-end funds. ETF is an open-end fund that tracks the changes of the "underlying index" and is listed on the exchange. Investors can buy and sell indexes by buying and selling ETFs just like buying and selling stocks. Therefore, ETF can be understood as "stock index investment product". The coexistence of secondary market trading and primary market subscription and redemption mechanism provides channels and possibilities for investors to carry out arbitrage trading when there is a price difference between ETF market price and fund unit net value. It is the existence of arbitrage mechanism that makes ETF avoid the common discount problem of closed-end funds You can know the daily ups and downs of the fund through the increase and decrease of the daily net value. From that day on, Unit net value (yuan) and cumulative net value (yuan) growth rate (%) 2010-4-2 0.7642 4.2723 0.59% 2010-410.7597 4.25961 0.7503 4.2330 -0.50% 20 10-3-30 0.7546543 8+0 4.2437 0.35% 20 10-3-29 0.75 15 4.2364 2.09% 20 10-3-26 0.736 1 4. / kloc-0/929 1.22% 20 10-3-25 0.7272 4. 1677 -6 5438+0.29% 20 10-3-24 0.7367 4. 1946 0.34% 20 1 0-3-23 0.7342 4. 1875 -0.65% 20 10-3-22 0.7390 4.20 1 1 0.6 1% 2 0 10-3- 19 0.7345 4. 1 884 0.52% 20 10-3- 18 0.7307 4. 1776 -0.08% 20 10-3- 17 0.73 13 4. 1793 2.07% 2 0 10-3- / kloc-0/6 0.7 165 4. 1375 0.62% 20 10-3- 15 0.7 12 1 4. 125 1 - 1.55% 20 10-3- / kloc-0/2 0.7 233 4. 1567 - 1. 15% 20 10-3- 1 1 0.73 17 4. 1805 -0.46% 20 10-3- 1 0 0.735 1 4. 190 1 - 1.04% 20 10-3-9 0.7428 4.2 1 18 0.38% 20 10-3-8 0.7400 4.2039 0.58% 20 / Kloc-0/0-3-5 0.7357 4.19180.38% 201-3-4 0.7329 4.1838-1.78%. 0-4-2 0.7642 4.2723 0.59% 20 10-4- 1 0.7597 4.2596 1.25% 20 10-3-3 1 0.7503 4.2330 -0.50% 20 1 0-3-30 0.7546543 8+0 4.2437 0.35% 20 10-3-29 0.75 15 4.2364 2.09% 20 10-3-26 0.736 1 4. 1929 1.22% 20 / kloc-0/0-3-25 0.7272 4. 1677 -6 5438+0.29% 20 10-3-24 0.7367 4. 1946 0.34% 20 10-3-23 0.7342 4. 1875 -0.65% 20 / kloc-0/0-3-22 0.7390 4.20 1 1 0.6 1% 2 0 10-3- 19 0.7345 4. 1884 0.52% 20 10-3- 18 0.7307 4. / kloc-0/776 -0.08% 20 10-3- 17 0.73 13 4. 1793 2.07% 2 0 10-3- 16 0.7 165 4. 1375 0.62% 20 / kloc-0/0-3- 15 0.7 12 1 4. 125 1 - 1.55% 20 10-3- 12 0.7 233 4. 1567 - 1. / kloc-0/5% 20 10-3- 1 1 0.73 17 4. 1805 -0.46% 20 10-3- 10 0.735 1 4. 190 1 - / kloc-0/.04% 20 10-3-9 0.7428 4.2 1 18 0.38% 20 10-3-8 0.7400 4.2039 0.58% 20 10-3-5 0.7357 4. 19 1 80.38% 201-3-40.7329 4.1838-1.78% 2065438+cumulative net value (yuan) and growth rate (%) 2010-4-20. 0.7597 4.2596 1.25% 20 10-3-3 1 0.7503 4.2330 -0.50% 20 10-3-30 0.7546543 8+0 4.2437 0.35% 20 10-3-29 0.75 / kloc-0/5 4.2364 2.09% 20 10-3-26 0.736 1 4. 1929 1.22% 20 10-3-25 0.7272 4. 1677 -6 5438+0.29% 20 1 0-3-24 0.7367 4. 1946 0.34% 20 10-3-23 0.7342 4. 1875 -0.65% 20 10-3-22 0.7390 4.20 1 1 0.6 1% 2 0 / kloc-0/0-3- 19 0.7345 4. 1884 0.52% 20 10-3- 18 0.7307 4. 1776 -0.08% 20 10-3- 17 0.73 13 4. / kloc-0/793 2.07% 2 0 10-3- 16 0.7 165 4. 1375 0.62% 20 10-3- 15 0.7 12 1 4. 125 / kloc-0/ - 1.55% 20 10-3- 12 0.7 233 4. 1567 - 1. 15% 20 10-3- 1 1 0.73 17 4. / kloc-0/805 -0.46% 20 10-3- 10 0.735 1 4. 190 1 - 1.04% 20 10-3-9 0.7428 4.2 1 1 8 0.38% 20 10-3-8 0.7400 4.2039 0.58% 20 10-3-5 0.7357 4. 19 18 0.38% 20 1 0-3-4 0.7329 4. 1838 - 1 .78% 20 10-3-3 0.7462 4.22 14 - 20 10-3-2 0.7420 4.2096 -0.42% 20 10-3- 1 0.745 1 4.2 183 1.07%