How to arbitrage etf fund discount?
When the net value of etf fund is higher than the market price of the fund, the discount rate is positive. Investors can buy funds in the secondary market and then apply for redemption of funds outside the market to obtain risk-free spreads.
When the net value of etf fund is lower than the market price of fund, the discount rate is negative. Investors can buy funds over the counter and then sell them in the secondary market to obtain risk-free spreads.
However, when the net value of the fund is higher than the market price, the market outlook may be repaired through the decline of the net value or the increase of the market price; When the net value of the fund is lower than the market price, the market outlook may be repaired through the increase of the net value or the decrease of the market price. Among them, the arbitrage behavior of investors will accelerate this process. Therefore, the discount rate of etf funds can not predict the stock market.
How is the etf fund discount generated?
According to different investment channels, funds can be divided into on-site funds and off-site funds. On-site funds are funds traded in the secondary market. OTC funds are not traded in the secondary market, but purchased and redeemed through banks, Alipay and other institutions.
When a fund can be traded on the market and redeemed off the market, there will inevitably be price differences. When the price of a fund in the secondary market is lower than the net market value of the fund, we say that the fund has a "discount". From this, the discount rate of the fund can be further calculated, and the formula is as follows:
Discount rate = (unit net share-unit market price)/unit net share.
According to this formula, when the discount rate is greater than 0, that is, the net fund value is greater than the market price, there is a discount. When the discount rate is less than 0, that is, the net fund value is less than the market price, there is a premium.
How to choose an etf fund to buy;
1. Understand the investment requirements of the market and investors themselves. There are various products in the fund market, and different products correspond to different market backgrounds and investment needs. Investors should fully understand the market before choosing etf funds, such as fund classification, fund risk coefficient, fund expected return and so on. At the same time, we should also be clear about our investment requirements, whether to pursue safety or impact higher returns. Investors make different investment plans and choose different funds according to their investment needs.
2. Pay attention to fund managers. Fund managers are often the key to a fund product. A good fund manager can allocate better and more reasonable fund products, and at the same time, it is easier for a good fund manager to make business decisions that are beneficial to the fund and improve the expected return of the fund. Therefore, investors should know more about fund managers when buying funds.
3. Pay attention to the security and stability of the fund. After choosing a fund company and fund manager, we should also pay attention to the security and stability of the fund itself. If the fund is established for a short time and the historical data fluctuates greatly, it is obviously not suitable for investors who pursue safe investment income.
4. Pay attention to the income of the fund. The purpose of investors investing in funds is to earn investment income, so when choosing funds, the historical income of funds and the trend of fund net value are important reference objects. Generally speaking, the higher the net value of the fund, the higher the fund income, but it may also bring higher risks, so investors should choose according to their risk tolerance.