1. What is an ETF fund?
According to the investment strategy, funds can be divided into passive funds and active funds, of which passive funds usually refer to index funds. According to different trading places, index funds can be divided into OTC index funds and OTC index funds. ETF is an index fund traded in the market, so index fund is also called exchange-traded fund, which is a trading open index fund with variable fund share.
ETF funds have the characteristics of dispersing risks and reducing risks, and support T+0 trading rules. The management fees and transaction fees of ETF funds are also lower than those of ordinary equity funds, but the comprehensive transaction fees of ETF funds are not low because of their high transaction frequency.
2. How do individuals buy and sell ETF funds?
There are two ways for individual investors to buy ETF funds, namely the primary market and the secondary market.
Primary market purchase refers to off-site purchase, including channels such as brokers and bank-level third-party sales organizations. Investors can purchase and redeem fund shares by opening fund accounts. The rate of purchasing funds through OTC channels is generally within, and the discount of third-party sales organizations is usually lower, while the bank rate is relatively high.
Secondary market purchase refers to on-site purchase, similar to stock purchase. You need to open a stock account, enter the fund code, and find the corresponding fund for trading. Generally, the rate of buying ETF funds in the market is two ten thousandths, and there is generally the lowest single sum in 5 yuan. On the whole, the rate of buying funds in the market is relatively low.
The above content about what ETF fund is, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.