1, you can only profit from the bull market.
Some investors believe that ETF funds can get expected returns only in a bull market when investing in the stock market. In fact, this is a big misunderstanding. With the continuous development of ETF funds, many professional fund managers make use of the volatility of the market to make investment operations. As long as the price difference changes, there will be profit opportunities.
2. I only feel that the risk is high.
Many investors believe that the stock ETF fund almost operates in Man Cang, and its net value fluctuates greatly. And the risk level of index funds is also high. In fact, compared with a single stock, ETF funds can effectively spread risks. In addition, ETF funds can invest in stable index stocks, such as the broader market. For novice investors with weak stock selection ability, ETF fund is an excellent tool to spread the unsystematic risk of individual stocks.
3. Only used for speculation and arbitrage.
The fund also has a configuration function. As an index fund, its transaction cost and tracking error are much lower than those of ordinary open-end index funds. With the emergence of various new innovative products, ETF funds can be used for richer medium-and long-term asset allocation schemes.
With the continuous development of the fund market, the instantaneous arbitrage in the primary and secondary markets is only one of many application strategies of ETF funds. With the constant updating of information and investment value, ETF funds have more allocation strategies.
The above three misunderstandings about investing in ETF funds are all here, and I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.