"It is more similar to an enhanced index fund." A fund analyst of a domestic securities firm believes that 90% of the fund assets are used for investment and tracking the index, and 10% of the fund assets strengthen the income through active management.
"Introduce banking channels and lower the investment threshold." The relevant person in charge of the CSRC told the First Financial Reporter that the main purpose of developing ETF-linked funds is to let more investors participate in ETF products and activate the ETF market. The Guidelines stipulate that the subscription, subscription and redemption rates of ETF-linked funds can refer to the relevant rates of open-end funds. Subscription and subscription shall be made in cash. "Many fund investors don't have stock trading accounts." These investors will not be able to participate in the ETF market by buying and selling ETF fund shares in the secondary market (stock market in a popular sense). If investors buy ETF products in cash, they will face a high threshold of 500 thousand copies. "This is also one of the reasons why the ETF market is not very active." "Realize the wholesale of the underlying ETF through ETF-linked fund products, and then retail it to ordinary investors through commercial banks." The analyst praised the innovative design of the regulatory layer. "With the investment starting point of ordinary open-end funds 1000 yuan, through the counters of commercial banks and online banks, and through the direct sales network of fund companies, the general public has also been introduced into the exchange-traded product market in disguise."
After understanding the principle of ETF-linked funds, we know that most of the funds of ETF-linked funds must buy the underlying index funds, so it is debatable to say that the "average household size" of ETF-linked funds is larger than ETF funds.