ETF funds can be bought and sold in the secondary market at any time, which is also its advantage of strong liquidity. The premise is that you must have a stock account with a basket of stocks in it. ETF connection cannot be traded in the secondary market, but can only be purchased and redeemed in the primary market like ordinary open-end funds, usually T+2 is used for delivery. You can buy without a stock account.
2. Different investment thresholds:
ETF funds have a high investment threshold. The minimum threshold for subscription in the primary market is 6,543,800+0,000 copies. According to the preliminary calculation of 654.38+0 yuan, it needs 654.38+0 million yuan. Such a tall game can only be played by institutional investors. Small and medium investors can only buy and sell in the secondary market by exchanging stocks.
3. Different purchase prices:
The subscription rate of ETF connection is higher than ETF. ETF subscription rate is generally 0.5% of subscription redemption share. If you purchase from the primary market, the subscription fee is 5000 yuan according to the minimum calculation of 654.38+0 million yuan.
ETF connection is purchased through the bank, and the front-end subscription rate below 6,543.8+0.5% is generally 654.38+0.5% (different fund companies have different preferential rates), while the subscription rate through fund companies is generally 60% off. According to this calculation, even after a 60% discount, the cost of purchasing 6.5438+0 million yuan ETF connection needs 9,000 yuan.
3. The net update frequency is different:
The ETF net value in the secondary market is generally updated once every 15 seconds, while the ETF connection is updated once a day.
ETF, short for Exchange-traded Fund, is a transactional open index fund, which can buy and redeem shares of fund companies and buy and sell shares at market price in the secondary market.
The investment target of ETF is index constituent stocks, and the investment target of ETF connection is an ETF it tracks.
Huaxia SSE 50ETF Link Fund invests in SSE 50ETF. In other words, there will be ETF and ETF connection.