What exactly are ETF funds?

There are many categories of fund products, and ETF funds are one of them.

So what kind of fund is an ETF? Are there any advantages for retail investors to buy ETFs? Below, the editor will introduce what exactly an ETF fund is, which is of great benefit to everyone. Let’s take a look.

What exactly is an ETF fund? ETF (Exchange Traded Fund) is an exchange-traded fund, an investment tool that combines a variety of securities, similar to an index fund.

Use stock trading methods to trade in the market.

ETF funds are passive funds. Compared with other active funds, ETF funds have lower management fees and purchase fees. They also have the characteristics of good liquidity and risk dispersion.

What are the advantages of retail investors buying ETFs? Compared with other investment varieties such as stocks, futures and foreign exchange, the biggest advantages of retail investors buying ETFs are as follows: 1. Convenience and speed. ETFs can be bought and sold in the securities market just like stocks, and buying and selling is also very convenient and

Fast.

Retail investors can trade through securities accounts and buy and sell at any time during trading hours without waiting for the fund company's redemption and subscription cycle.

2. Low-cost ETFs have relatively low management fees because they are usually passively managed (i.e., track an index) and do not have active fund managers or research teams.

In addition, because ETFs trade on the securities market, retail investors can also avoid sales commissions or other hidden fees that may exist with other fund products.

3. Investment diversification ETFs are investment tools composed of a variety of securities and can invest in a variety of different asset classes and industries.

This means that investors can diversify their assets by purchasing ETFs, thereby reducing investment risks.

4. High transparency: The composition and holdings of ETFs are usually public, and investors can check the changes in the ETF's security portfolio and shares at any time.

This increases the transparency of ETFs and makes it easier for investors to monitor their investments.

When analyzing a stock's market opening, it is reported that the market opening includes the trend of the stock that day. Analyzing the market opening of a stock mainly includes five parts, namely the commission ratio; the five levels of buying and selling orders; the opening price, closing price, and rise.

Decline, lowest and highest price, volume ratio, internal and external market, total trading volume; turnover rate, total circulating capital, net assets, income, dynamic price-earnings ratio; purchase and sale transaction orders.

In the stock market, the market opening of stocks refers to the real-time market data window during the transaction process.

Handicap data usually consists of the commission ratio, five levels of transaction order data, stock opening price, stock closing price, stock price increase or decrease, stock highest price, stock lowest price, stock latest price, stock volume ratio, and stock price.

External market data, total trading volume of stocks, turnover rate of stocks, total share capital of stocks, circulating share capital of stocks, net assets of stocks, price-earning ratio of stocks, expected returns, net inflows of stocks, bulk inflows of stocks, and stock ownership

Comprehensive data composed of sector concepts, etc.

Among the mid-line stock selection techniques for stocks that have been trading at the daily limit, if you want to make a mid- to long-term layout, you have to look at the current market situation. You can refer to the annual line (250-day line) and half-year line (120-day line) of the market index. If the trend is at the annual line

and above the half-year line, that means it is not a bear market at the moment.

In the face of national policies and the overall decline of the stock market, investors should not take chances to rush for a rebound or choose to buy, but should take advantage of the trend to clear positions and wait and see.

If the stock market rises sharply, you should enter with the trend and hold shares in the medium term.

Midline stock selection should be comprehensively analyzed from six aspects: K-line shape, technical indicators, relative price, company fundamentals, market trend, and the theme of the stock.

Some stocks with high P/E ratios and prices much higher than their intrinsic value should be abandoned.

As for how to catch stocks with continuous daily limit? The starting stock price rises by more than 6%; you must "increase the volume"; the greater the rise, the stronger the trend and the more favorable it is.

Among the key conditions for the daily limit, it is best to open higher by 2 to 3 points and open lower by no more than 2 points; do not increase the volume during the decline, otherwise there will be suspicion of shipments; the closing price should close near yesterday's closing price.

It is best to form a gap.