1, carry trade
ETF implements a trading system in which the primary market and the secondary market coexist. Investors can purchase and redeem in the primary market, or buy and sell ETF shares at the market price in the secondary market.
This coexisting trading system enables ETF funds to have both the transaction price and the net value of fund unit shares. When they deviate, investors have room for arbitrage. The specific operation is as follows:
When the secondary market price of ETF funds is lower than the net value of fund shares (discount transaction), you can buy fund shares in the secondary market, redeem them in the primary market, and then sell them in the secondary market to achieve arbitrage.
When the secondary market price of ETF funds is higher than the net value of fund units (premium transaction), you can buy a basket of stocks in the secondary market, buy ETF shares in the primary market, and then sell them in the secondary market to achieve arbitrage.
2. Fixed investment
The so-called fixed investment of the fund means to invest a fixed amount at a fixed time. One of the characteristics of A shares is high volatility, while ETF fixed investment belongs to bear market trading strategy.
Fixed investment in the fund can effectively prevent investors from chasing up and down in the bull market, make full use of the investment opportunities of fund net value withdrawal and fluctuation, and help investors accumulate cheap chips in the bear market. When the bull market comes, these cheap chips can bring higher expected return on investment.
ETF funds need to pay attention to proper take profit in bull market, and many fund trading platforms provide the functions of intelligent fixed investment and hard setting of take profit ratio.
The above contents about ETF investment skills, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.