ETF redemption is not something that every investor can do, because a redemption unit must have 654.38+0 million funds (for SSE 50ETF). If you redeem 6,543,800 yuan, you will get a basket of stocks, and then you can sell them and turn them into cash. If you don't have that many fund shares, just sell the fund directly.

Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares in the secondary market at the market price like closed-end funds. However, the purchase and redemption must be replaced by a basket of fund shares or a basket of fund shares.

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Coiling method

Investors can buy ETFs in two ways: they can buy from fund managers according to the net value of the fund on that day (the same as ordinary open-end funds), but the minimum share of ETF purchases is usually relatively large, so it is difficult for ordinary investors to buy in this way;

ETF can also be traded directly with other investors on the stock exchange. The trading process is similar to stock trading. The transaction price is determined by both buyers and sellers, which is often different from the net value of the fund at that time (like ordinary closed-end funds).

Baidu Encyclopedia-Trading Open Index Fund