In the fund market, ETF funds are often mentioned by investors. Since the birth of the first ETF product in China in 2004, ETF has developed rapidly, and its overall net value has shown a steady upward trend, growing into a new force in the financial market.

What kind of fund is ETF?

ETF is the abbreviation of ExchangeTradedFund, which is called "transactional open index fund" in Chinese, also known as "index stock". It is an index investment tool, copying the underlying index and building a portfolio that tracks the index changes. Investors realize a package of securities transactions by buying and selling a product. Simply put, ETF is an open-end fund product that securitizes the tracking index and trades it on the stock exchange.

Investors can understand the connotation of ETF from the perspective of transaction+index+fund;

1 transactional ETF

Trading funds and ETFs that can be traded in the secondary market of stock exchanges can be traded as freely as stocks.

2 index ETF

An index fund that tracks a specific security index.

3 fund ETF

An open-end fund that can be purchased and redeemed in kind at any time. During the trading hours, investors can buy and redeem ETF shares in the form of portfolio securities at any time in the primary market.

The above are some contents of ETF funds, hoping to help you.