Second, etf actually refers to a transactional open index fund. In many cases, ETF is called exchange-traded fund, and its nature is open, which is the biggest difference from closed-end fund. ETF funds are usually listed on exchanges, and investors can buy and sell ETF funds by buying and selling stocks. And with the increase of etf products, investors began to pay attention to etf funds, and whether etf funds can be held for a long time has become a problem. For this problem, investors should treat it rationally, because etf funds are easily affected by the market environment, and long-term holding may not be able to predict the risks in advance; However, knowing that the fund market is relatively stable, if the fund itself has good development potential, it can also consider holding it for a long time.
3. Transactional open-end index funds, also known as exchange-traded funds, or ETF for short, are open-end funds with variable fund shares listed on the exchange. It combines the operating characteristics of closed-end funds and open-end funds. Investors can purchase or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at the market price in the secondary market. It has the characteristics of purchase, redemption and listing. According to different investment methods, ETFs can be divided into index funds and actively managed funds. Most foreign ETFs are index funds. At present, ETFs launched in China are also index funds. ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and fund share net value trend are basically consistent with the tracked index. Therefore, investors buying and selling an ETF is equivalent to buying and selling the index it tracks, and can get basically the same income as the index. Usually, it adopts a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.