2. Transactional open-end index fund, commonly known as exchange-traded fund (ETF), is an open-end fund with variable fund shares listed on the exchange. According to the different investment methods, ETFs can be divided into index funds and active management funds, and most of the ETFs abroad 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 traded on the stock exchange like stocks. The trend of its transaction price and fund share net value is basically consistent with the tracking 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.