ETF is a special fund, the full name of which is ExchangeTradedFunds, which can be referred to as transactional open index fund for short. The main difference between ETF funds and ordinary funds is that ETF funds? Stock? , so that you can trade directly in the secondary market. ETF is also an index fund, and ETF also has the advantages of index fund. At the same time, ETFs can be traded directly in the secondary market, so ETFs have better liquidity than OTC index funds. From the perspective of trading attributes, its essence is no different from ordinary stocks, and it can be easily bought and sold through fund codes. The redemption of OTC funds on the same day is based on the net value at the close of the day to confirm the redemption share and amount, and the funds also need to be received on multiple trading days. ETFs in the market can be traded into cash at any time during normal trading days. Large fluctuations in the market, such as sudden plunge or skyrocketing, may become opportunities for investors.

For some mature market traders, ETF is also a tool for arbitrage combined with financial derivatives, which actually uses the liquidity in ETF. Therefore, the fund size and daily turnover of ETF are two very important indicators to evaluate ETF. The liquidity of ETF with small fund scale and low turnover will be affected, and sometimes it will become a constraint for trading. Whether buying or selling, once the amount is relatively large, it will immediately lead to large price fluctuations.

Buying etf fund index investment is more stable. Because etf index is a combination of stocks, that is to say, the benchmark of a class of stock prices, such a combination can well resist market risks. The large fluctuation of a stock will not affect the fluctuation of etf index. The east is not bright, the west is bright, and this does not rise and that rises. Etf Index Foundation largely filters out individual fluctuations in the market and makes your investment more stable. ?

Etf fund trading is a popular trading method at present. With the continuous expansion of stocks in the A-share market, there are now more than 3,500 stocks. Manual trading is becoming more and more difficult, and the situation of individual stocks is becoming more and more complicated. It's hard to master completely. For some people, stock selection has become a big problem in the face of a large number of markets. In the absence of accurate stock selection, it is a good choice to buy etf index funds. For example, you are optimistic about the trend of technology stocks, but you still don't know which stock to choose. Then you should choose the technology stock etf, so that although you can't get super high returns, you can at least get a follow-up income, and this income is very stable, which makes you comfortable to make money. This is also a very popular trading mode at present.