ETF fund is a transactional open index fund, which is often called exchange-traded fund. Equity fund refers to the fund in the stock market. ETF and stock are two completely different investment tools, which are mainly reflected in the differences between securities investment funds and stocks. So what's the difference between them? Let's introduce it to you.

the difference between ETF funds and equity funds 1. the stock risk is more concentrated. the investment risk of stocks is more concentrated, and ETF, as a basket of securities, can be dispersed to some extent. Etfs pay more attention to the portfolio of investment targets and are more decentralized. 2. The investment cost of ETF is lower. In the investment process, transaction fees and handling fees are extremely important. Since ETF transactions are exempt from stamp duty of one thousandth, then the fees of ETF will be saved by 5% on the transaction costs of stock purchase and redemption. In this way, ETF can invest with less cost. 3. ETF's investment efficiency is higher. For ETFs, most types of ETFs can directly or indirectly realize "T+" transactions. For example, bonds, gold, currencies and cross-border ETFs have implemented "T+" transactions; However, the bought stocks cannot be sold on the same day, and the "T+" transaction cannot be realized. 4. ETFs can be purchased and redeemed in the primary market. ETFs can be traded not only in the secondary market, but also in the primary market, while stocks can only be bought and sold in the secondary market after listing. 5. ETF investment scope is wider. The main investment target of stock funds is stocks, while the investment scope of ETF funds is larger. In addition to stocks, it can also invest in other investment markets such as money and gold. So much about the difference between ETF funds and equity funds, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.