1, the transaction is convenient, investors are easy to conduct day trading, real-time transactions, and the threshold is low, so it is difficult to hold for a long time.
2. Due to the frequent ETF transactions, the turnover rate is quite high. Although the cost is very low, it is actually very high after operation.
3. Some ETF funds are small in scale and have poor liquidity, so buying them may not be able to sell them.
4. Automatic fixed investment cannot be set. Many investors usually have a lot of work and life pressure, so they don't have time to pay attention to securities accounts often. It may be more time-saving and labor-saving to configure the fixed investment plan through banks and third-party sales fund platforms.
5. It is impossible to correctly judge the timing of admission.
6. There are certain requirements for the amount of funds. If you buy too little at a time, the handling fee will be higher and the loss will outweigh the gain.
Extended data:
What is an ETF?
Transactional open-end index fund, commonly known as exchange-traded fund (ETF), is an open-end fund with variable fund share, which is listed and traded on the exchange.
Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics 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 the market price in the secondary market like closed-end funds.
However, the purchase and redemption must use a basket of stocks for fund shares or use fund shares for a basket of stocks.
Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the market price of ETF and the net value of fund units. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.
According to different investment methods, ETFs can be divided into index funds and actively managed funds. Most foreign ETFs are index funds. At present, ETFs launched in China are also index funds.
ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and fund share trend are basically consistent with the tracked index.
Therefore, investors buying and selling an ETF is equivalent to buying and selling the index it tracks, and can get basically the same income as the index. Usually, it adopts a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.
superiority
Diversify investment and reduce investment risks.
Passive portfolio usually contains more goals than general active portfolio. The increase in the number of targets can reduce the impact of the fluctuation of a single target on the overall portfolio, and at the same time, it can reduce the fluctuation of the portfolio through the different effects of different targets on market risk.
It has the characteristics of both stocks and index funds.
(1) For ordinary investors, ETFs can also be split into smaller marketing unit and traded in the secondary market of the exchange like ordinary stocks.
(2) If you earn the index, you will make money, and investors will no longer have to study stocks and worry about stepping on stocks; Before 20 10, there was no short-selling mechanism in China's securities market, so there was a situation of "losing money when the index fell".
On April 20 10, stock index futures were opened. Since February 5, 20 1 165438, seven ETF funds have been included in the margin financing and securities lending scope. )
(3) Combining the advantages of closed-end funds and open-end funds.
ETF, like the familiar closed-end fund, can be bought and sold on the exchange in the form of small "fund units".
Similar to open-end funds, ETF allows investors to purchase and redeem continuously, but when ETF redeems, investors get a basket of stocks instead of cash, and they are allowed to purchase and redeem after reaching a certain scale.
Compared with closed-end funds, ETFs are listed on exchanges, just like stocks, which can be traded at any time in a day. The differences are as follows:
1 ①ETF is more transparent. Since investors can purchase/redeem continuously, the frequency of asking fund managers to announce their net worth and portfolio is also accelerated accordingly.
(2) Due to the existence of the continuous subscription/redemption mechanism, theoretically there will not be too much discount/premium between the net value of ETF and the market price.
Compared with open-end funds, ETF funds have two advantages:
First, ETF is listed on the exchange and can be traded at any time within one day, which is convenient for trading. Open-end funds can only be opened once a day, and investors only have one trading opportunity every day (that is, subscription and redemption);
Second, when ETF redeems, it delivers a basket of stocks without keeping cash, which is convenient for managers to operate and can improve the management efficiency of fund investment.
Open-end funds often need to keep some cash for redemption. When investors of open-end funds redeem their fund shares, they often force fund managers to constantly adjust their investment portfolios, and the resulting taxes and losses of some investment opportunities are borne by those long-term investors who have not made redemption requests. This mechanism can ensure that when some ETF investors ask for redemption, it will not have much impact on long-term ETF investors (because the redemption is stocks).