Bank etf refers to the market fund that directly tracks the bank index. ETF is an exchange-traded fund, which is mainly used to buy all the securities in an index according to a certain proportion, so as to copy the whole index, while bank ETF is a fund to copy the bank index.

First, why should we invest in bank ETFs?

1. Underestimated

The popular view is that value is undervalued. In the stock market, analysts like to use an index called price-to-book ratio to measure the value of stocks. The lower the P/B ratio, the more undervalued it is.

2. Reduce policy and regulatory risks

Since 20 17, the CBRC has strengthened financial supervision, including restructuring the outsourcing business and inter-bank business of banks, which has obvious influence on banks with relatively insufficient debt capacity. In the future, we will continue to make unremitting efforts to strengthen financial supervision. Although this is conducive to improving the overall competitiveness of the banking industry, it will also increase the policy and regulatory risks of individual banks. By holding exchange-traded funds, we can avoid regulatory risks and grasp the overall performance of the banking industry.

3. It has scale effect and cost advantage.

Exchange-traded funds of banks gather many investors in terms of capital and concentration, and entrust fund managers to carry out professional management, which has significant scale effect and can help investors save costs.

Save time and effort

If you choose to buy bank stocks instead of bank exchange traded funds, you can make more money than the index if you choose the right one, and make less money or even lose money if you choose the wrong one. More importantly, stock selection requires not only professional knowledge and ability, but also a lot of time and energy to track and study the fundamentals of listing and banks, both of which are indispensable. Since most investors have their own jobs, they need to balance life and leisure in their spare time, including fulfilling family responsibilities. Therefore, it is a shortcut to choose a bank exchange trading fund.

5. Reasonable tax avoidance

Due to the state's support for the fund industry, ETF transactions in the secondary market can be exempted from stamp duty, while stock transactions need to pay 1% stamp duty, which is higher than the current general trading commission. As the constituent shares of the bank exchange trading fund are bank shares, the trading bank exchange trading fund has more tax benefits than the trading bank shares.