Both products are based on the principle of fitting and tracking the Shanghai and Shenzhen 300 Index, and provide investors with an index investment tool with transparent management and low cost through passive index investment methods.

The CSI 300 ETF has higher tracking efficiency. 95% of the existing CSI 300 index funds track the CSI 300 index, and 5% is used as cash or government bonds with a maturity of less than one year to meet liquidity needs. This means that when you spend 1 million to buy the CSI 300 Index Fund, you actually buy 950,000 CSI 300 stocks and 50,000 in cash. The CSI 300 ETF tracks the index 100%, which is equivalent to spending 1 million to buy CSI 300 stocks, which improves the efficiency of capital use.

Lower investment costs are another feature of Harvest CSI 300 ETF that attracts investors. ETFs are passive investments, so the management fees charged by ETFs are also cheaper. Generally speaking, the management fees of open-end funds are mostly 1.2%, while the management fees of ETFs are mostly 0.3%-0.5%. In addition, investors need to pay a handling fee of about 1% when subscribing for general funds, but ETFs are traded in the secondary market, and investors only need to pay low transaction commissions when trading.

In addition, the good correspondence between the underlying index of the CSI 300 ETF across the Shanghai and Shenzhen markets and the existing stock index futures contracts has organically integrated the three major markets of Shanghai, Shenzhen and stock index futures, providing a Investors are provided with spot products that are better suited to stock index futures, further improving financial investment tools, and enhancing market functions such as hedging and price discovery of stock index futures.