First, the advantages of ETF linked funds:
1. Low investment cost: First of all, the capital threshold requirement is low, and the overall cost level of the linked fund is also low. The ETF investment method with low cost and high convenience is adopted for bank investors.
2. It can meet the needs of investors for fixed investment: index funds are one of the most suitable types of funds for fixed investment. After the linked fund is issued, investors can easily make a fixed investment in the bank like other open-end funds and share the risks equally.
3. It can meet the switching needs of investors: after opening the switching business of linked funds, investors can flexibly switch between linked funds and other funds issued by the same fund company according to the income expectations and personal preferences at different market stages, and optimize asset allocation, thus maximizing income.
Second, the shortcomings of ETF linked funds:
1, ETF linked fund, as an index fund, has little dependence on managers, so it is impossible to avoid risks efficiently by changing the investment strategy of fund managers.
2.ETF-linked funds are high-risk stock index funds, which are greatly affected by market price changes and increase risks.
Third, the difference between ETF and ETF-linked fund.
1, different goals: ETF is used to track the index, and passive management is implemented to reduce errors; ETF is linked to ETFs invested in the market and actively managed, with the goal of obtaining a rate of return that exceeds the index performance.
2. Different purchase channels: ETF is an on-site fund and needs to be purchased through a stock account; ETF connection is an off-exchange fund, which can be purchased through agency channels and fund companies.
3. Different trading methods: ETFs can purchase and redeem (with high threshold) or trade in the secondary market; ETF connections can only be purchased and redeemed off-site.
4. transaction rate: the transaction fee of ETF is the same as that of stock. According to the transaction amount, there is a guaranteed 5 yuan handling fee for buying stocks. We calculate it according to the handling fee of three ten thousandths, that is, we buy ETF fund, which is worth 654.38+100000 yuan. The handling fee is 3 yuan, but the brokerage firm will charge it according to the guaranteed 5 yuan. Now many brokers in 5 yuan can cancel the minimum fee limit. Linked funds are OTC funds, and investors' participation mainly includes the subscription fee (generally 1%) at the time of subscription and the redemption fee at the time of sale (the longer they are held, the lower the fee). There are many ways to calculate the transaction cost of OTC funds.