There are many types of funds. Although there are many differences, they are basically the same. ETF is one of the most obvious characteristics of the fund market. It is an open-end fund, which can be traded on the exchange, and it is very different from ordinary funds. The following is Bian Xiao's collection about etf funds and general funds. Let's have a look!

Is it better to buy ETF or general fund?

If investors pursue market returns, then it is best to choose etf funds. Etf funds invest in a specific index and buy some or all of the stocks in the index in order to obtain the same income as the index and pursue market returns. If investors pursue high returns, then it is better to choose ordinary funds, such as partial stock hybrid funds and stock funds, to pursue performance beyond the market.

It should be noted that etf funds are traded in real time. If investors want to trade in real time, it is best to choose etf funds. If investors have no requirements for real-time trading, they can choose ordinary funds, which are usually bought on the same day and confirmed on the second trading day.

Etf funds invest in a specific index and buy some or all of the shares of the index in order to obtain the same income as the index. General funds include money funds, bond funds, hybrid funds, stock funds, LOF funds and so on.

Which is better, ETF fund or general fund?

Each has its own advantages. If you want to make short-term investment, it is recommended to choose ETF funds. If you want to hold it for a long time, it is recommended to choose a general fund. Some ETF funds can operate in T+0, much like stocks, pursuing market returns, while ordinary funds cannot be bought and sold on the same day. It is recommended to hold them for a long time, that is, to pursue longer-term high returns.

The difference between ETF fund and ordinary fund;

1 transaction: ETF funds can be traded in the primary and secondary markets, involving cash, stocks and fund shares; Ordinary index funds can only be purchased and redeemed in the primary market.

Arbitrage: when there is a difference between the transaction price of ETF funds in the secondary market and the net value of fund shares, arbitrage trading can be carried out; Ordinary index funds cannot arbitrage.

3 fees: ETF fund management fee rate is 0.5%, and custody fee rate is 0.1%; The general index fund management fee is 1% to 1.2%, and the custody fee is 0.2%.

4 Net value announcement time: ETF funds announce the portfolio daily, and announce the fitting net value in real time during the day: ordinary index funds announce the portfolio quarterly or semi-annually, and announce the net value of the previous day daily.

ETF funds and general funds have their own advantages and disadvantages. There is no absolute difference between the two, mainly depending on which type investors want to invest. Relatively speaking, novices suggest investing in general funds. If you have experience, want to pursue the pleasure of short-term operation, and have time to look at the market, you can try ETF funds.