According to the Guidelines, ETF-linked funds refer to funds that invest most of their assets in tracking the same underlying index (referred to as target ETF), closely track the performance of the underlying index, pursue the minimization of tracking deviation and tracking error, and adopt an open operation mode.

At the same time, the Guidelines clarify the three types of investment scope of ETF-linked funds: portfolio securities that track the same underlying index (that is, target ETFs); Constituent stocks and alternative constituent stocks of the underlying index; Other securities as stipulated by China Securities Regulatory Commission. And in ETF-linked fund property, the target ETF shall not be less than 90% of the fund's net asset value.

Second, what is the difference between ETF linked funds and ETFs?

The difference between ETF linked funds and ETF funds lies in:

1, ETF linked funds mainly invest in ETF funds;

2. The tracking error of 2.ETF linked funds is slightly larger;

3. The trading platforms of the two are different;

4. The transaction costs are different.

Third, what is an ETF?

ETF, namely transactional open index fund, also known as exchange-traded fund, is an open-end fund with variable fund share listed on the exchange.

Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can buy 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 like closed-end 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. Etfs usually adopt a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.