What's the difference between etf funds and ordinary funds?
1, with different properties.
ETF funds are exchange-traded funds, while ordinary funds are open-end funds. ETF funds are traded in a similar way to stocks, and can be listed and traded on stock exchanges, while ordinary funds are purchased and redeemed through fund companies.
2. Changes in transaction price.
The transaction price of ETF funds changes in real time, while the transaction price of ordinary funds is the net value determined after the daily closing. This means that if you want to buy and sell ETF funds during the trading day, you can trade at the market price, while ordinary funds need to wait until the next trading day to determine the trading price.
3. Different expenses
ETF funds usually have lower management costs and transaction costs because their trading methods are more efficient. General funds may charge higher management fees and sales fees because they need more manpower and material resources to manage and sell.
4. Inconsistent trading places
ETF needs to open a stock account for trading, while ordinary funds can trade in banks, brokers and third-party platforms (Alipay, JD Finance, Tian Tian Fund, etc.).
5. Different positions
Etf funds can reach 100% Man Cang, while ordinary funds can only reach 95%. As an open-end fund, the total share of general funds is not fixed, and the number of purchases and redemptions is also uncertain. When the redemption exceeds the subscription, the fund needs to keep 5% of the money to deal with the net redemption, which means that the investment position of the general fund cannot reach 100%.
Etf funds and general funds are introduced as follows:
ETF fund, namely transactional open index securities investment fund, has the advantages and characteristics of stock, open index fund and closed index fund, and is an efficient index investment tool with various strategies.
Ordinary funds are generally index funds, that is, fund products that take a specific index (such as the Shanghai and Shenzhen 300 Index) as the underlying index, invest in the constituent stocks of the index, and track the performance of the underlying index.