The domestic financial market is booming, and there are many kinds of investment that ordinary investors can choose. Among them, Public Offering of Fund and ETF can be said to be very suitable investment methods for ordinary investors, and they are also very popular. What is the difference between ETF and Public Offering of Fund? Which investors are they more friendly to?
from the investment threshold,
the initial investment amount of ETF is different from that of Public Offering of Fund. Generally speaking, the initial single purchase amount of ETF is 1 yuan, and the minimum single additional amount is 1 yuan. The threshold of Public Offering of Fund is lower. Most funds are the starting point of 1 yuan's subscription. If they are fixed investment, many funds can start investment in 1 yuan.
Therefore, the investment threshold in Public Offering of Fund is lower.
In terms of trading flexibility,
Trading flexibility is an important difference between ETF and Public Offering of Fund. ETF is relatively more liquid, and its trading mechanism is similar to that of stocks. It can be traded at the real-time price when the stock market opens, so investors can grasp the trading time and price more flexibly. Public Offering of Fund will only update a net value one day. All funds bought before 3 pm on the trading day are at the same price, and after 3 pm, the price will be postponed for one trading day. If you like more liquid transactions, ETF will be more suitable for you.
In terms of information disclosure,
Public Offering of Fund generally publishes the top ten positions once every quarter, and all positions once every six months or once a year. The information disclosure requirements of ETFs are higher. Most ETFs published daily are passive tracking indexes, and investors can also understand the composition of ETFs from the index data, so ETFs are more transparent.
in terms of transaction cost,
the transaction cost of p>ETF is lower than that of Public Offering of Fund, mainly because it doesn't need active management like Public Offering of Fund.