ETF is a trading product that can be redeemed in the primary market and bought and sold in the secondary market. But the threshold gap between the primary market and the secondary market is huge. According to the prospectus, the minimum net asset value of the unit purchased and redeemed by Harvest CSI 300ETF is 2,000,200 yuan; The minimum net asset value of Huatai Bairui CSI 300ETF is 22 1.78 million yuan. But in the secondary market, as long as there is 1000 yuan, you can play the Shanghai and Shenzhen 300ETF.
If we are optimistic about the future space of the Shanghai and Shenzhen 300 index, buying the Shanghai and Shenzhen 300ETF has more advantages than buying the traditional Shanghai and Shenzhen 300 index fund. On the one hand, buying ETF can save costs. Holding ETF only needs to pay 0.5% management fee and 0. 1% custody fee, which is lower than the traditional index fund 1% management fee and 0.2% custody fee.
In addition, compared with the Shanghai and Shenzhen 300 index funds, another advantage of buying the Shanghai and Shenzhen 300ETF is that you can use 100% fund tracking index, and you don't need to set aside 5% cash for redemption, which can make your money more efficient.
In addition, like investing in traditional ETF funds, investors can buy the CSI 300ETF in the secondary market when the index is low, and sell it when the index is high, so as to obtain the spread income. This process is the same as stock trading. Investors only need to pay brokerage commission (no more than 0.3%) and do not need to pay stamp duty. Compared with traditional index funds, they need to pay subscription and redemption fees for each transaction, and the transaction costs saved by Shanghai and Shenzhen 300ETF in a large number of transactions will be considerable.