1.ETF fund trading rules ETF fund trading rules are relatively simple. Investors can buy ETF funds directly through the stock exchange. The trading process is similar to stock trading, unlike the traditional * * * mutual funds that need to be purchased and redeemed through fund companies.
The trading hours of ETF funds are consistent with the trading hours of stocks, usually within the normal trading hours of the exchange. Investors can trade ETF funds through online trading platforms or brokers.
Another important trading rule is the market trading of ETF funds. The trading price of ETF funds is not only determined by its index price, but also affected by the relationship between supply and demand and trading time. When buying or ETF funds, investors may trade at a price slightly higher or lower than their net asset value.
2. Compared with other investment products, the transaction cost is 2. ETF funds are relatively low. The following are some common ETF fund transaction costs:
Trading commission: When purchasing or ETF funds, investors need to pay a certain trading commission. The amount of trading commission varies with brokers and trading platforms, and investors should carefully compare the fees of different brokers.
Management fee: the management fee of ETF fund is the fee that investors need to pay when holding ETF fund. Management fees are usually expressed in the form of annual fees, which are charged according to a certain proportion of the net asset value of ETF funds. Management fees are used to support the management, marketing and operation of the fund.
Bid-ask spread: Because the transaction price of ETF funds is affected by supply and demand and trading time, investors may encounter bid-ask spread when buying or trading ETF funds. The bid/sell spread refers to the difference between the actual transaction price and the net asset value of ETF funds.
Liquidation fees: When selling ETF funds, investors may have to pay liquidation fees. Liquidation fee is the fee for handling investors' redemption requests, which is usually charged at a certain proportion.
3. In addition to transaction costs, investors also need to consider the cost of 3. ETF fund The following are some common ETF fund fees:
Bonus tax: If the share held by ETF funds is distributed, investors may need to pay the corresponding bonus tax. The dividend tax rate varies according to the investor's location and personal income.
Capital gains tax: when investors invest in ETF funds, they may need to pay capital gains tax if their capital gains exceed a certain limit. The tax rate of capital gains tax also varies according to the investor's location and personal income.
4. Summarizing the trading rules and fees of ETF funds is relatively simple and clear, which is more flexible and convenient than other investment products. Investors can purchase directly through the stock exchange, and the trading time is consistent with the stock trading time. The transaction cost of ETF funds includes transaction commission, management fee, bid-ask spread and liquidation expenses. Investors also need to consider expenses such as dividend tax and capital gains tax. When choosing and trading ETF funds, investors should carefully compare the costs of different fund companies and trading platforms and make reasonable investment decisions according to their investment needs and risk tolerance.