Discount rate refers to the difference between the market price of ETF and its net value. When the discount rate is positive, it means that the market price is lower than the net value. Investors can buy funds in the secondary market and then apply for redemption outside the market, thus obtaining risk-free spreads. On the contrary, when the discount rate is negative, the market price is higher than the net value, and investors can make a profit by buying funds and selling them in the secondary market.

The discount rate does not directly determine the value of ETF, but reflects the relationship between supply and demand of ETF in the market. Therefore, investors should pay more attention to the net growth and market prospect of ETF, rather than simply pursuing discount rate. For retail investors, choosing an ETF with a higher discount rate may be more conducive to realizing income, because it means more arbitrage space.