At the same time, the "Guidelines for Review of Feeder Funds of Exchange-traded Open-End Index Securities Investment Funds" stipulate that neither the fund manager nor the custodian of ETF feeder funds shall accrue management fees and custody fees for the ETF fund part of the ETF feeder fund assets, that is, 90% of the

Asset management fees and custody fees will no longer be charged, avoiding repeated charges on investors.

As an innovative product, ETF feeder funds have positive significance for the three entities in the fund market: for fund companies, the issuance of ETF feeder funds clears the restriction that bank channel funds cannot purchase ETF funds, which is conducive to the expansion of ETF fund scale and product liquidity.

improvement; for bank channels, this move further increases the sales product line; for investors, especially those who are not accustomed to on-site transactions or those who make regular fixed investments, ETF-linked funds provide more choices.

In terms of fund investment operations, ETF-linked funds invest in target ETFs mainly through subscription and redemption. However, when the liquidity of the target ETF secondary market is good, in order to better achieve the investment objectives of the fund, the reduction

If the tracking deviation and tracking error from the underlying index are small, it is also appropriate to buy and sell the target ETF through secondary market transactions.

Therefore, the fund's income source mainly comes from the mid- to long-term tracking of index funds, and its style is basically consistent with the style of the target index.