ETF is a transactional open index fund, referred to as exchange traded fund (ETF), which is an open fund with variable fund share listed on the exchange.

According to different investment methods, ETFs can be divided into index funds and actively managed funds.

Second, ETF index funds.

ETF index fund represents the ownership of a basket of stocks, which refers to the index fund traded on the stock exchange like stocks. It takes a specific index as the target index, and the trend of transaction price and fund share net value is basically consistent with the tracked index. At present, the more mainstream indexes in the market are the Shanghai and Shenzhen 300 Index, the S&P 500 Index and the Nasdaq 100 Index.

Investors buy and sell ETF index funds, which is equivalent to buying and selling the index they track, and can get basically the same income as the index. Usually, it adopts a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.

Three. Representative ETF index fund

1, SSE 50ETF

SSE 50ETF is one of the most representative blue-chip indexes in Shanghai market, and it is an innovative fund.

At the same time, SSE 50 Index is the tracking target of the first traded open index fund (ETF) in China.

2. Shanghai and Shenzhen 300ETF

Shanghai and Shenzhen 300ETF is a trading open index fund with the Shanghai and Shenzhen 300 Index as the target, which is traded and subscribed/redeemed in the secondary market. It is a heavyweight ETF fund in China market.

When there is a difference between the transaction price of ETF secondary market and the net value of fund shares, investors can carry out arbitrage trading.

3. Small and medium-sized board ETF

Small and medium-sized board ETF, namely SME board index fund, is a representative stock selected from A shares listed and traded on SME board of Shenzhen Stock Exchange.

Small and medium-sized board index is a comprehensive index with all stocks listed on the SME board of Shenzhen Stock Exchange as sample stocks, and its sample selection index is the ratio of the average circulating market value to the average transaction amount within a period of time (usually the first six months).

4. Growth Enterprise Market ETF

Growth enterprise market ETF is an index fund that constructs a stock portfolio according to the composition and weight of the constituent stocks of the growth enterprise market index.

GEM index selects 100 samples from GEM stocks to reflect the operation of GEM market, which is one of the core indexes reflecting the operation of listed stocks in Shenzhen Stock Exchange.