First, the purchase cost.
1. subscription fee: the subscription fee for ETF funds is usually collected by fund companies, exchanges, brokers and other institutions, in order to cover fund management costs and other related expenses. Generally speaking, the subscription fee is not too high, generally between 0. 1%-0.5%.
2. Commission fee: Commission fee refers to the transaction fee that investors need to pay when purchasing ETF funds. This fee is usually the result of negotiation between investors and brokers, banks and other institutions. Generally speaking, the higher the commission, the higher the cost of traders. At present, most brokers have certain preferential policies, and investors can choose according to their own needs.
3. Price difference fee: Price difference fee refers to the fee generated by the difference between the market price and the fund net value when investors buy ETF funds. Because the price of ETF fund is determined by the relationship between market supply and demand, its price may be different from the net value of the fund. If investors buy when the market price is higher than the net value of the fund, then they need to pay the difference.
Second, the cost of sales.
1. redemption fee: redemption fee refers to the fee that investors need to pay when they need to sell some or all of the funds during the holding period of ETF funds. This fee is usually collected by fund companies, exchanges, brokers and other institutions, and its purpose is to cover the fund management costs and other related expenses. Generally speaking, the redemption fee is not too high, generally between 0. 1%-0.5%.
2. Commission fee: Commission fee is also the transaction fee that investors need to pay to sell ETF funds. This fee is usually the result of negotiation between investors and brokers, banks and other institutions. Generally speaking, the higher the commission, the higher the cost of traders. At present, most brokers have certain preferential policies, and investors can choose according to their own needs.
3. Difference fee: The difference fee is also applicable to selling ETF funds. Because the price of ETF fund is determined by the relationship between market supply and demand, its price may be different from the net value of the fund. If investors sell when the market price is lower than the net value of the fund, then they need to pay this part of the price difference.
Generally speaking, the handling fee of ETF funds is relatively low compared with other funds. However, the specific procedure fees still need to be determined according to the investors' own needs and the negotiation results between brokers and other institutions. The minimum handling fee also needs to be compared with different fund companies, exchanges, brokers and other institutions. Therefore, before investing, investors need to do some homework on different ETF funds in the market in order to choose the most suitable investment tools.