ETF funds can be divided into on-site subscription and off-site subscription. For on-site subscription, just like buying stocks, you can enter the code, subscription quantity and subscription price in the trading interface, while for off-site ETF funds, you can also buy them on brokerage software, and many of them have to be exchanged with stocks. It should be noted that investors buy before 15: 00, submit the purchase order on the same day, and confirm the share on the next trading day.

At the same time, when trading ETF funds, investors can arbitrage according to the price difference between on-site and off-site ETF funds. When the ETF price in the market is greater than the net value, that is, the fund premium, investors can buy a basket of stocks from the secondary market, then convert them into ETF fund shares in the primary market according to the net value, and then sell ETFs at high prices in the secondary market to complete arbitrage; When the ETF price in the market is less than the net value, that is, when the fund is discounted, investors can buy ETF fund shares at a low price in the secondary market, then redeem them in the primary market according to the net value, and then sell them in the secondary market to complete arbitrage.

I. Basic concepts

Transactional open-end index fund, also known as exchange-traded fund, or ETF for short, is an open-end fund with variable fund shares listed on the exchange. It combines the operating characteristics of closed-end funds and open-end funds. Investors can purchase or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at the market price in the secondary market. It has the characteristics of purchase, redemption and listing.

Second, the classification of funds.

According to different investment methods, ETFs can be divided into index funds and actively managed funds. Most foreign ETFs are index funds. At present, ETFs launched in China are also index funds. ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and fund share net value trend are basically consistent with the tracked index. Therefore, investors buying and selling an ETF is equivalent to buying and selling the index it tracks, and can get basically the same income as the index. Usually, it adopts a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.