1, the transaction rate is low. There is a big gap between ordinary index funds and ETF funds in management fees. The management rate of common index funds is about 1.2%, while the management rate of ETF is about 0.2% (depending on the trading platform, the management rate of the two will be different). The difference between the two management rates is about 65,438+0%, which is quite different for retail investors and large households. Moreover, the commission for purchasing ETF funds is only a few ten thousandths, and stamp duty is not required. In contrast, the transaction rate of ETF is further reduced.
2. The investment threshold is low. If investors buy stocks alone, some leading stocks are often hundreds of thousands of lots, and the investment threshold of investors will be raised. As an index fund, ETF lowers the investment threshold while meeting the investor's investment target index, because the single share price of ETF is relatively low, generally between a few cents and a few dollars, and investors can buy and participate even if they spend only a few hundred dollars.
3. Investment is difficult. Many investors will encounter the problem of stock selection or the timing of admission. Obviously, it is a promising sector, and as a result, the stock selection mistakes, other stocks in the sector have risen, but the stocks they chose have fallen; I obviously wanted to enter the low position, but I was stuck. At this time, ETF solves this problem very well, because buying ETF is an index fund, and all the stocks under the index are invested according to certain rules. If investors have optimistic sectors and buy corresponding ETF funds, as long as the overall investment direction of investors is correct, investment losses caused by stock selection mistakes can be largely avoided. There is no need to worry about the timing of entering ETF, because from the long-term performance of the market, the income of the capital market fluctuates and tilts to the upper right. Choosing ETF can solve many problems for investors and reduce the difficulty of investment.
4. The risks are more dispersed. Buying ETF funds is equivalent to buying a basket of stocks, and each ETF fund includes investments in dozens or hundreds of stocks corresponding to the index. The rise and fall of a single stock is difficult to shake the rise and fall of the index, and the investment risk of investors is shared by dozens or hundreds of stocks.
5. There are various ways to make profits. ETFs can be purchased and redeemed off-site or traded on-site. When there is a difference between the net fund value and the ETF market price, investors can arbitrage, which effectively avoids the discount problem of general closed-end funds.
6. Better liquidity. The liquidity of ETF is similar to that of stock, and it can be traded in real time. After the investor sells the ETF fund, the funds will be received immediately, and the funds can be withdrawn to the bank card the next trading day.
7. Information is relatively more transparent. The net value of ETF funds is linked to the index and changes with the change of the index. Relatively speaking, fund information is more open and transparent.
How to buy ETF funds:
1. Open an on-site fund account or stock account in a securities company, and you can buy and sell after saving money.
2. Investors choose the corresponding ETF according to their optimistic stocks or sectors.
3. Investors without specific investment targets can choose large ETFs, such as CSI 300.
4. Select the ETF corresponding to the hot industry in the near future.