ETF funds apply for redemption in the primary market through basket stocks. Some of the stocks in the basket must be replaced by cash because of suspension or other reasons, and some of them are allowed to be replaced by cash. If investors purchase ETF funds with basket stocks and choose to purchase some of the stocks that are allowed to be replaced by cash, then investors need to pay cash in advance at a certain premium ratio when purchasing. After liquidation, fund managers use this money to buy and sell securities in the market, which is the ETF fund replacement transaction. After the transaction of ticket replenishment is completed, the operation of more and less replenishment will be carried out according to the actual transaction amount.
What are the trading rules of ETF funds
1. Purchase and redemption. The minimum subscription and redemption unit is generally 5, or 1 million shares. Share subscription and share redemption are adopted. Investors need to use a basket of stocks to purchase, and what they get after redemption is also a basket of stocks.
2. Trading rules in the secondary market. Need to trade with stock account; Implement the trading system of T+1; The price limit is 1%; The minimum buying unit is 1 lot, and 1 lot is 1 copies; The minimum change unit of ETF price declaration is .1 yuan.
3. In fact, most investors only trade in the secondary market. Few of them involve subscription and redemption. When trading in the secondary market, the advantage of ETF is that it can realize the investment in the index and reduce the influence of individual stock fluctuation.
what is the difference between cash substitution and cash substitution in p>etf subscription and redemption?
Cash substitution means that the ETF shares have to be replaced by cash when they are purchased and redeemed due to suspension of trading, etc. When they are purchased, they cannot be used, and when they are not returned, they all use cash. Etf with "must", "allowed" and "forbidden" cash substitution has some securities and some cash. "Refund" cash substitution means that investors can only apply for redemption in cash, but cannot use component securities, such as gold ETF. Every ETF application for redemption has a secondary liquidation in which cash is refunded more and replenished less.
Etf fund risks include
incorrect purchase and redemption list, estimated cash portion without deduction of income distribution amount, investors' redemption failure due to ETF's purchase of stocks to be settled, failure to purchase due to suspension of constituent stocks, handling risk of supplementary securities business, and data transmission risk.
how to deal with short-term financing of etf without a voucher source?
if you are willing to bear a certain interest cost, you can apply for securities locking business. Please consult the account opening sales department for details. Tips: Locking securities means locking the specified securities for a specific customer, so as to realize the exclusive use of special securities, and it needs to pay a fixed interest.