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What's the difference between 1.etf and general fund?
1, the trading system is different: etf funds choose the trading rules and systems that are closely combined with the primary market purchase and redemption and the secondary market transaction, which means that investors can arbitrage in the primary market and the secondary market; Ordinary closed-end funds can only be traded at the market price in the secondary market, and cannot be arbitrage;
2. Different fund scale: the operation scale of etf will be adjusted with the application and redemption of investors, while the operation scale of market share of ordinary closed-end funds is fixed and is not easy to change during the renewal period;
3. Transparency and liquidity are different: etf announces the market share of investment every day and the unit net value, while ordinary closed-end funds announce it quarterly or semi-annually, and announce the fund net value once a week.
Second, what is an etf?
Etf funds, also known as transactional open index funds, can be listed and traded in trading places, and the fund share can be changed. Etf funds mainly invest in stocks. Not only that, investors can purchase or redeem fund shares, but also buy and sell etf fund shares in the second-hand market.