1. What is ETF? 1. Concept and understanding of ETF. Conceptually, the full English name of ETF is: Exchange Traded Fund, which is a type of traded open-end index fund.

Although it is very difficult to read, it is not difficult to understand. We might as well break it up and talk about it.

Common stock investors call ETFs “on-exchange funds.” By on-exchange, it refers to the stock exchange, that is, the fund can be freely bought and sold on securities trading websites or APPs.

To make it easier to understand, let’s take an example. Suppose you think the stock market will rise again, prepare 10,000 yuan, and want to lurk in the stock market to buy securities companies’ stocks in advance. The threshold for researching the stocks of dozens of securities companies across the country is high.

If you know which one to choose, the best way is to buy all the leading securities companies, so that at least you won't miss the average increase.

So here comes the question. I want to buy CITIC Securities, Huatai Securities, Guotai Junan and other leading securities companies for 10,000 yuan. How can I buy them all?

At this time, we will invite on-site ETF funds to appear. Brokerage ETFs and securities ETFs are index funds composed of a basket of brokerage stocks. Buying it is equivalent to buying a collection of stocks of outstanding A-share brokerage companies.

How much does one share of brokerage ETFs and securities ETFs cost? It’s about 1 yuan.

In other words, you can buy the entire A-share brokerage industry for 100 yuan.

Friends who have stock buying experience should be able to easily understand the concept of ETF funds, even if they have just entered the market.

2. The relationship between ETFs and stocks. We just mentioned a concept. Buying ETFs means buying a basket of stocks.

For example, the brokerage ETF corresponds to a basket of securities company stocks, and the semiconductor ETF corresponds to a basket of semiconductor company stocks.

In other words, the purpose of ETFs is to track listed companies in a specific industry or group. The rise and fall of ETFs are synchronized with the rise and fall of a basket of stocks.

my country's ETF funds have been developing for so many years. There are already many ETF index funds and industry funds for investors to choose from, such as the well-known CSI 300, CSI 500, consumer ETFs, brokerage ETFs, etc.