1. Investment characteristics of OTC ETFs and OTC ETF funds
On-exchange ETF and off-exchange ETF are both index funds, and their investment objectives are to track index performance, but there are significant differences in investment characteristics.
On-market ETF is an index fund listed on the exchange. Its investment features are transparent price, strong liquidity and low transaction cost. Investors can realize real-time position adjustment through exchange transactions.
OTC ETF fund is an index fund that is not listed on the exchange. Its investment feature is that investors can customize their investment portfolio according to their own investment needs, and investors can choose investment targets according to their own investment strategies to realize customized investment. Moreover, the transaction cost of OTC ETF funds is low, and investors can save transaction costs.
2. Investment process of OTC ETF and OTC ETF fund
There are also significant differences in the investment process between on-site ETF and off-site ETF funds.
The investment process of on-site ETF is relatively simple, and investors can trade through the exchange to realize real-time position adjustment; The investment process of OTC ETF funds is more complicated. Investors need to open an account first and then invest through an investment consultant. Investors can choose investment targets according to their own investment strategies and realize customized investment.
3. Investment risks of OTC ETFs and OTC ETF funds
There are also significant differences in investment risks between OTC ETF and OTC ETF funds.
The investment risk of ETF in the market mainly comes from market risk, and investors need to pay attention to market fluctuation and the performance of index stocks; The investment risk of OTC ETF funds mainly comes from portfolio risk, and investors need to pay attention to the performance of portfolio stocks and their own risk tolerance.
From the aspects of investment characteristics, investment process and investment risk, both on-site ETF and off-site ETF funds are index funds, but there are significant differences between them in investment characteristics, investment process and investment risk. Investors should choose funds reasonably according to their investment objectives and risk tolerance.