For fund investment novices, it is a headache to distinguish various funds in the fund investment market. ETF Linked Fund and ETF Fund are both important parts of the fund market, both of which take the index as the investment target and are often compared. What is the difference between ETF linked funds and ETF funds?

1, with different fund coverage.

Transactional open-end index fund is an open-end fund with variable fund share, which is listed and traded on the exchange. ETF-linked funds refer to ETF funds that invest most of their assets in tracking the same underlying index. Generally speaking, ETF funds have a larger scope.

2. There are differences in trading methods.

Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at the market price in the secondary market like closed-end funds. And ETF connection, like most open-end funds, can not be listed and traded but can only be purchased and redeemed.

3. Different investment strategies.

Fund is a completely passive tracking index, and its price changes are affected by the tracking index. Fund managers don't play much, so their transaction costs are naturally lower. ETF-linked funds refer to ETFs that invest most of their assets in tracking the same underlying index. Similar to the enhanced index fund, its investment strategy is: 90% of the fund assets are used to track the index, and 65,438+00% of the fund assets are actively managed to enhance the expected return.