Current location - Trademark Inquiry Complete Network - Tian Tian Fund - What's the difference between ETF and general open-end fund?
What's the difference between ETF and general open-end fund?
1. Transaction costs are different: the fees paid to securities firms during ETF transactions, of which the commission is not higher than 0.2% and the management fee is about 0.3%~0.5%. General open-end funds need to pay an annual management fee of about 1.0%~ 1.5%, subscription fee of about 1% and redemption fee of about 1.5%. The transaction cost of ETF is relatively cheap.

2. Different trading methods: ETF can be traded like a stock after listing, and the price changes in real time, so it is very convenient to buy and sell directly. Open-end funds generally take the net value after the daily closing as the trading price of the day. The biggest difference is that ETF exchanges a basket of stocks for ETF shares at the time of subscription and a basket of stocks instead of cash at the time of redemption.

3. Different fund management methods: ETF belongs to "passive management", and the manager will not take the initiative to select stocks, but track the constituent stocks related to the index, which can follow the same trend as the underlying index and reach the standard of "replication". Generally, the management of open-end funds mostly belongs to "active management", and fund managers mainly achieve the goal of surpassing the market index through active screening.

ETF investment, we should do a good job in the trend analysis of various indexes. There are many kinds of funds, and other innovative funds are constantly emerging. It is a long and lasting process for investors to study and judge the fund.

Tips:

1. The above contents are for reference only and do not make any suggestions;

2. Before investing, it is recommended that you first understand the risks existing in the project and have a clear understanding of the investors, investment institutions, chain activity and other information of the project, instead of blindly investing or straying into the capital market. Investment is risky, so be cautious when entering the market.

Reply time: 2022-0 1- 14. Please refer to the latest business changes announced by Ping An Bank in official website.