ETF-linked funds refer to funds that invest most of their assets in ETFs that track the same underlying index (referred to as target ETFs for short), closely track the performance of the underlying index, pursue the minimization of tracking deviation and tracking error, and adopt an open operation mode. It is equivalent to the fund in the fund (FOF). ETF linked funds are for investors who don't have stock accounts. Its investment direction is ETF funds, that is, investment funds. You can buy it on the websites of banks and fund companies like ordinary open-end funds. Of course, the transaction rate is generally 1.5% and T+2 delivery system.

What are the similarities and differences between ETF linked funds and ETF funds?

ETF is a kind of "transactional open index fund", also known as exchange traded fund. ETF is an open-end securities investment fund product listed and traded on the exchange, and the trading procedure is exactly the same as that of stocks. The assets managed by ETF are stock portfolios. The types of stocks in this portfolio are the same as those of a specific index, such as the SSE 50 Index, and the number of each stock is the same as that of the index.

Similarities between ETF linked funds and ETF funds;

1, ETF and ETF-linked funds are all index funds, and their fluctuation range and expected annualized expected return are closely related to the tracked index.

2.ETF and ETF-linked funds track the same index, so they have similar annualized expected return characteristics of performance and risk expectation.

Differences between etf linked funds and etf funds;

1.ETF can be traded in the secondary market, but linked funds cannot.

2.ETF investment index constituent stocks, linked funds directly invest in ETFs.

3.ETF has a high threshold for subscription and redemption (the minimum unit is usually one million) and can only be submitted through brokers. The threshold of linked funds is low, and linked funds can be purchased and redeemed through off-site channels.

4. The assets of the linked fund will be mainly invested in the target ETF, so the impact on the target ETF will rapidly expand the scale of the target ETF, thus making the trading of the target ETF more active.

Because of their similarity, for ordinary investors, the expected annualized returns of the two risks are not much different, so investors can choose either one. Because the threshold of ETF's subscription and redemption is relatively high, the significance of ETF-linked fund lies in that it provides an indirect channel for individual ordinary investors, especially those who want to exchange long-term expected annualized expected returns through fixed investment in the fund. Therefore, investors who like to buy funds through bank channels or make fixed investment in funds can choose ETF to connect funds. Because linked funds are not traded in the secondary market, institutional investors who carry out T+0 arbitrage can choose ETF. Similarly, since ETFs are traded in the secondary market, and the time difference between the subscription and redemption of linked funds and the delivery of general index funds is T+2, the trading of ETFs is more convenient than that of linked funds, so investors who like to do bands should choose ETFs as bands.