ETF refers to a transactional open-end index fund, also commonly known as exchange-traded fund, referred to as ETF, which is an open-end fund with variable fund share listed on the exchange. ETF originated in the United States, and now ETF is more common in China. So what are the tips for buying ETFs? What should I pay attention to? The following is analyzed by Bian Xiao for everyone:
What are the tips for buying ETFs?
1, depending on the ETF scale.
The bigger the ETF, the more people it holds, and the smaller the tracking error. Generally speaking, the bigger the ETF, the better, because if the ETF is too small, it may face the risk of liquidation. Therefore, when choosing an ETF, the scale is a very important indicator.
2. Use spread arbitrage.
When the ETF fund price is greater than the net value, investors can buy a basket of stocks in the secondary market, then convert them into ETF fund shares in the primary market according to the net value, and then sell them at a high price in the secondary market; When the ETF price is less than the net value, investors can buy ETF fund shares at a low price in the secondary market, then redeem them at the net value in the primary market, and then sell them in the secondary market to earn the difference.
3, high throw and low suction
ETF funds mainly earn income by earning the bid-ask price difference, and only by buying at a low price and selling at a high price can they earn income. But this also requires investors to have a certain level of investment, the ability to judge and analyze funds, and the requirements for them will be higher.
What should I pay attention to?
1, pay attention to liquidity.
Now ETF also depends on liquidity. Generally, the higher the liquidity, the more convenient the investment and the better the exit.
Liquidity usually depends on turnover rate and turnover in the market. Turnover rate refers to the frequency of ETF trading in the market in a certain period of time. The higher the turnover rate, the more transactions, indicating that the more active the fund, the better the liquidity. If the daily turnover of a fund is small, the difference between buying and selling will be relatively large, which will lead to an increase in costs.
2, pay attention to the index error
ETF is an index fund, and the performance of the fund mainly depends on the index. The smaller the error, the more valuable the fund may be, the better the future development prospects and the greater the possibility of profit. On the contrary, it may not be profitable.
3. Pay attention to OTC rights issue
If the OTC share of ETF is limited, it may lead to a discount or premium in the on-site trading price, which will also increase the trading risk. Therefore, when buying ETF funds, we should also pay attention to the off-exchange share to prevent the increase of risks and losses.
Techniques and methods of etf trading
1. For ETF funds with T+0, investors can judge according to the time-sharing trend. When the ETF price is lower than the average price or runs below the average price, investors can buy it appropriately, and when the spot price runs above the moving average price, investors can sell some appropriately.
2. For T+ 1 funds, investors can conduct band operations, remember the formula of buying low and selling high, and analyze the trend of the moving average. If the price drop is supported by a certain moving average, you can buy some in moderation; Conversely, when the rise is suppressed by the moving average, it can be sold.
3.ETF is less risky than stocks, but it still has certain risks, so it is best to make portfolio investment, that is, choose more funds in several sectors, and don't put eggs in the same basket.
Seven skills of investing in ETF
After 19 years of rapid development, the ETF of Shanghai and Shenzhen Stock Exchanges officially broke through 400 as an open-ended trading fund, with a scale exceeding one trillion yuan. ETF can replace individual stock investment to some extent and become an important tool for ordinary investors to participate in investment.
Really worry-free and labor-saving, choose broad-based ETF
For ordinary Xiaobai, experience, mentality, ability and other aspects are immature. The idea of most small white investors is that they want to make money and be carefree. Although this idea is unrealistic, it is also very simple. Who doesn't think so? From this point of view, if you invest in ETFs, the broad base represented by index funds such as CSI 300, CSI 100, CSI 500 and SSE 50 is very suitable. In addition, there are index funds such as Hang Seng ETF, State-owned Enterprise Index ETF and MSCI, which are all good choices. These ETFs are extended for more than 3~ 10 years, and the annualized rate of return can basically reach 10%, with relatively small fluctuations, which is very worry-free and labor-saving.
Pay attention to business cycle and valuation when choosing industry ETF.
About the style division of industry funds, it can be roughly divided into three styles: growth, value and cycle, which is recognized by the market. Chips, new energy vehicles, medical care, emerging consumption, Internet, etc. Belonging to the growth type; Banking, real estate, insurance, infrastructure, etc. Belongs to the value style; In addition, nonferrous metals, coal and steel are cyclical.
Compared with choosing individual stocks, choosing industry ETF does not need to consider the research on the fundamentals of individual stocks, but it needs to increase the research on business cycle and valuation. This is what I always say: everything has a cycle, and underestimation will never be defeated. Simply put, we prefer industries with long-term boom cycles, such as medical care, chips, new energy vehicles, photovoltaics, and emerging consumption. Their business cycle is long enough, their logic is long enough, and their compound interest value is relatively large.
However, it is not a good time when their valuation seriously overdraws their performance in the next few years. Even if they don't sell, they can't buy any more. You can look at the indicator PEG (P/E ratio relative profit growth rate). PEG > 1.5 basically belongs to the high foam area, so don't invest any more. The value sectors, such as banks, real estate, insurance, infrastructure, etc., have a slow growth rate. If they enter an extremely undervalued area, such as the valuation is only 6-9 times and PEG is 0.8- 1 times, they will also be valuable.
Short-term trading selection technology and periodic ETF.
Some friends still like to do short-term work. This operation is more suitable for ETF with large fluctuation. From a practical point of view, chips, new energy vehicles, military and other technology ETFs. , as well as non-ferrous metals, coal, securities, etc. In the cycle category, the fluctuation is relatively large, which is a good variety choice for investors with short-term trading ability. However, when investors choose, they should try to choose an industry ETF with a long boom cycle, and its fault tolerance rate will be higher.
You can be bolder.
Investors who invest in ETFs can be bolder and need not be timid. Of course, I still don't recommend margin trading (adding leverage). When I say bold, I mean that after the bottom intervention, you don't need to worry about meeting all kinds of black swans, you can hold them boldly. Because ETF, as a passive index fund, completely tracks the development trend of the industry, as long as it intervenes at a relatively low point, it is inevitable to hit a new high in the future. Even if you buy at a high point, as long as you have patience, you will hit a new high sooner or later, but it is too painful to chase the high point. Try not to do it. In short, ETF investment is a kind of variety with guaranteed bottom, no worries about clearing positions, and it is destined to hit a new high when it rises.
Big band
As a long-term investor, I understand the importance of long-term investment. I have also experienced crossing bulls and bears, and I have long been not afraid of the operation of one or several companies owned by bulls and bears. I have experienced success and failure. This method is not impossible, but it is not feasible in ETF investment.
Let's take the Shanghai and Shenzhen 300 Index as an example. If you don't make a profit at the highest point of 589 1 in 2007, even if you consider dividends, it will take 20 years to reach a new high. Therefore, for ETFs, large bands are still needed. In other words, whether it is a broad-based fund or an industry fund, there is no big mistake in profit-taking when it comes to historically high valuation areas.
Pay attention to discount premium
After understanding the above five points, can I invest in ETF? No, I suddenly thought of one thing, that is, the premium and premium of ETF (I will explain it in this book). In short, when the premium exceeds 1.5%, don't subscribe any more. Premium means that if you buy at a price higher than the current price, you will be harvested by hot money. Don't do this. Of course, if the investment happens to have a certain discount, this bargain can be earned.
LOF is a useful supplement.
ETFs in the market are passive funds, lacking active funds with heavy OTC leading stocks. This is a great pity, but the LOF developed by Shenzhen Stock Exchange makes up for this deficiency. These funds are basically active funds and are a useful supplement to ETFs. In addition, there are some exponentially enhanced lofs to choose from.
The greatest value of the book Common Sense of Fund Investment is probably to break some old understandings about fund investment. For example, if an investment fund can't outperform the Shanghai and Shenzhen 300 Index, it can only be held for a long time, and it should choose a low valuation. Of course, all this is based on common sense and practice. This book systematically introduces the basic knowledge and specific methods of fund investment.
The purpose of investment funds is to obtain reasonable income and as much income as possible under reasonable conditions. This kind of understanding should be established by every investor. If you are afraid of risks and adopt an extremely conservative strategy and care too much about low valuation, the investment results are often unsatisfactory. Since you are doing venture capital, you can't be too conservative. Otherwise, why not put your money in the bank? Investment is risky, and this risk will not become bigger or smaller because of valuation. This may be the first conventional understanding to be broken.
The second conventional understanding that this book wants to break: if you choose a good direction, the return rate of investment funds can outperform the Shanghai and Shenzhen 300 Index. Statistics show that in the long run, the Shanghai and Shenzhen 300 Index can outperform 80% of investors (including professional investment institutions) in the market, and the number of people who outperform the Shanghai and Shenzhen 300 Index is a minority after all. However, if we can explore and persist in growing industries, we can actually do it. For example, in the 17 years since 12 released the index, the Shanghai and Shenzhen 300 index has increased by 4.85 times, while the CSI consumption index has increased by 24.3 times, and the CSI medical index has increased by 14.2 times.
The book Common Sense of Fund Investment needs to break the third conventional understanding. Doing fund investment also needs to do a good job in industry and company research. There is no such thing as "lying down to win". If you just pursue the average yield of the Shanghai and Shenzhen 300 Index, it is called "lying flat". You don't need to study this book, or even learn any professional knowledge about fund investment, as long as you insist on investing in the Shanghai and Shenzhen 300 Index. However, in order to obtain higher excess returns, it is necessary to know something about industry research and company research.