ETF funds have always been called passive management funds. Generally, a specific index stock is selected as the investment target, and it does not actively seek to surpass the market performance, but tries to completely copy the performance of the index and minimize the tracking error. Recently, however, the news that the first batch of active ETFs will be issued in China has made many investors want to ask: What is an active ETF fund? What does it have?

What are the active ETF funds?

On 202 1,1,65438+5, it was reported that the first batch of active ETFs would be issued soon, including China Merchants Fund and the enhanced ETF of Shanghai and Shenzhen 300 Index in cathay pacific fund, as well as the enhanced ETF of CSI 500 Index in southern fund, Jing Shun Great Wall Fund and Huatai Berry Fund.

What is the difference between active ETF and other funds?

The ETF funds mentioned above are generally passive funds, but what are the differences between these active ETF funds, that is, the first batch of index-enhanced ETF products in China, and the previous ETF funds and index-enhanced funds? In fact, the simple understanding is that index-enhanced ETF is a product between ETF and ordinary index-enhanced fund, which is mainly different from the two.

1 compared with ETF funds, the purpose of ETF funds is to reduce errors and keep the trend as close as possible to the index. The index-enhanced ETF is based on the index, which reduces the loss of predictability through artificial operation. Enhanced ETF, as an innovative product in the early stage, may require higher tracking error control, that is, the active risk is generally low. Of course, with the popularization of products, managers may develop enhanced ETFs with greater tracking errors.

Compared with ordinary index-enhanced funds, enhanced ETFs can be traded directly in the secondary market, which will be more flexible and convenient. Ordinary index enhancement funds can only be traded over the counter, and the daily price is subject to the net value settled after the close.

In addition, in theory, the management fee of enhanced ETF is between index ETF and index enhanced fund, but in fact, because different fund products will have different rate concessions or set standards, we need to compare their products ourselves.

A lesson on making money from funds (advanced chapter -32 class hours) A lesson on making money from funds (advanced chapter -32 class hours)

Lesson 32 takes you to upgrade your fund practice

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