What is ETF fund ETF fund? It's called ExchangeTradedFund. It is an investment tool, similar to stocks, and can be bought and sold on the stock exchange. ETF's portfolio usually matches an index, so it is also called index fund. ETF funds have a wide range of investments, including stocks, bonds, commodities, real estate and other assets. Investors can invest in the whole market or a specific market by buying ETF funds.
The charging methods of ETF funds usually include management fees and transaction fees.
Management fee refers to the expenses incurred by fund management companies to manage ETF funds, including fund manager's salary, marketing expenses, accountant's expenses, audit expenses, etc. The management fee is usually calculated as an annual percentage, which is called the management rate. The management fee of ETF funds is usually between 0. 1%- 1%. The lower the cost, the higher the fund income.
Transaction fees refer to the fees that need to be paid when trading ETF funds in the stock exchange, including transaction fees, commissions and service fees of securities companies. Transaction costs are usually fixed, regardless of the number of transactions. The transaction cost of ETF funds is usually between 0. 1%-0.5%. The lower the interest rate, the lower the transaction cost for investors.
There is no uniform minimum fee for ETF funds, and different fund companies will set fees according to their own conditions. In order to protect the interests of investors, China Securities Regulatory Commission stipulates that the management fee of ETF funds shall not exceed 65,438+0.5% of the net asset value of the fund, and the transaction fee shall not exceed 65,438+0% of the transaction amount. When purchasing ETF funds, investors should pay attention to the charging standards of funds and choose funds with relatively low management rates and transaction costs to reduce investment costs. Investors can also choose the online trading platform to trade ETF funds, which can avoid the commission fees of some traditional securities companies.