Generally ETF funds invest in real stocks, but they also invest in some derivatives, so they may face several risks. Take A50 as an example, instead of directly buying A shares, it indirectly invests in A shares through a derivative called CAAPS (China A-share access product). CAAPs issuers purchase a large number of A shares through QFII quotas, and issue CAAPs for each A-share component in the form of warrants. Therefore, A50 can invest in A shares as long as it invests in CAAPs.