There are both advantages and disadvantages for a fund to make a fixed investment, and not all funds can make a fixed investment. For example, ETF fund is a special form of open-end securities investment fund, which aims at tracking the trend of a specific index. Usually, a basket of stocks is used for subscription and redemption, and the fund shares are listed and traded on the stock exchange. So can ETF fund make a fixed investment?

can p>ETF fund make a fixed investment?

ETF funds traded over the counter can make fixed investment, while ETF funds traded on the floor don't support fixed investment, because the trading principle of ETF funds traded on the floor is the same as that of stocks, so they can't make fixed investment. However, in the end, the services provided by brokers will prevail, and a small number of brokers have fixed investment business of ETF funds.

if you plan to buy an ETF fund and want to make a fixed investment, then you can consider making a fixed investment in the ETF's off-site connection fund. ETF-linked fund is a fund that invests most of the fund assets in an ETF (called target ETF), closely tracks the performance of the underlying index, and can be purchased and redeemed off-site (bank channels, etc.).

what is the underlying index of ETF?

index is an index used to measure the trend of each market or industry. Each ETF tracks a specific index, and the tracked index is the target index of the ETF. The selection of the underlying index has a very important impact on ETF products. Generally, the underlying index of ETF requires popularity, market representativeness, good liquidity, stability, objectivity and transparency in preparation.

ETF funds have three main characteristics: they are transactional funds that can be traded in the secondary market, index funds that track specific indexes, and open-end funds that can be purchased and redeemed in kind at any time.