"ETF" is the abbreviation of ExchangeTradedFund, so it means "transactional open index fund" when translated into Chinese.
It can be bought and sold. It is also a fund that tracks a specific index. You can also purchase and redeem anytime and anywhere.
Then the investment skills are as follows: long-term investment, relatively stable, short-term investment, up to sell.
Transactional open-end index fund, also known as ExchangeTradedFund (ETF), is an open-end fund with variable fund share, which is listed and traded on the exchange.
Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at the market price in the secondary market like closed-end funds.
However, the purchase and redemption must use a basket of stocks for fund shares or use fund shares for a basket of stocks. Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the market price of ETF and the net value of fund units. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.