1. What is an ETF?

Exchange Traded Fund (ETF) is an open-end securities investment fund product listed and traded on an exchange. The trading procedures are exactly the same as stocks.

The assets managed by ETFs are a basket of stock portfolios. The types of stocks in this portfolio are the same as the component stocks included in a specific index, such as the Shanghai Composite 50 Index. The number of each stock is consistent with the proportion of the constituent stocks of the index. ETF trading

The price is determined by the value of the basket of shares it owns, known as the "unit fund's net asset value."

ETF is a special hybrid fund that overcomes the shortcomings of closed-end funds and open-end funds while integrating the advantages of both.

ETFs can track a specific index, such as the Shanghai Composite 50 Index; unlike open-end funds that use cash to subscribe and redeem, ETFs use a basket of index constituent stocks to subscribe and redeem fund shares; ETFs can be listed and traded on exchanges.

Because ETFs are easy to understand and have high market acceptance, since the first ETF product was launched in the United States in 1993, ETFs have developed rapidly around the world.

Over the past 10 years, 12 countries (regions) around the world have launched more than 280 ETFs, with assets under management reaching more than 210 billion US dollars.

Research shows that ETFs have broad market prospects in my country. They not only help attract insurance companies, QFII and other institutions and individual savings to enter the stock market and increase the proportion of direct financing, but also activate secondary market transactions and increase the depth and breadth of the market.