According to the understanding of ordinary investors, ETFs investing in the domestic market do not support T+0 trading, but can invest in Hong Kong stocks and overseas markets, such as Hang Seng ETF.
Transactional ETFs include trading and redemption, but some ETFs involved in redemption need to open redemption rights.
The principle of trading, subscription and redemption of common single-market stock ETF: the fund shares subscribed on the same day can be sold on the same day, but cannot be redeemed; The fund shares bought on the same day can be redeemed on the same day, but they cannot be sold; Securities redeemed on the same day can be sold on the same day, but they may not be used to purchase fund shares; Securities bought on the same day can be used to buy fund shares on the same day.
ETF is a product issued by fund companies. His first-hand buyers (founders) are all certified investment institutions, such as securities companies and large institutional investors. These buyers can exchange a basket of shares (variety and proportion fund companies agree that they can also cash out at the initial stage of issuance) for ETF shares. Of course, these certification bodies can also exchange ETF shares for a basket of stocks.
That is, the transaction price of ETF deviates from the net value. When the transaction price is high and the net value is low, these "wholesalers" will buy a basket of stocks to "buy" ETF shares, and at the same time retail the shares to other investors to realize risk-free arbitrage of buying low and selling high.
On the other hand, if the transaction price is lower than the net value, you are smart enough to think that you can make money by "buying" ETF shares from the market and then selling them for fund companies.
Extended data:
ETF is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at the market price in the secondary market like closed-end funds.
However, the purchase and redemption must use a basket of stocks for fund shares or use fund shares for a basket of stocks. Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the market price of ETF and the net value of fund units. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.