(2) Low cost: Low cost is a major advantage of index funds, while the management cost and operation cost of ETF are lower than those of ordinary index funds. ETF transactions in the secondary market only charge commission, and stamp duty is not charged. Generally, brokers charge three ten thousandths, and only six ten thousandths at a time. The general subscription fee for general funds is 1.2%, and the redemption fee is 0.5%. Even if the subscription fee is converted, it adds up to six thousandths.
(3) Transaction convenience: Like stocks and closed-end funds, it can be bought and sold on the exchange, and it can also be purchased and redeemed on a certain scale in the primary market, which has transaction convenience.
(4) The tracking index has high accuracy: compared with ordinary index funds (open-ended), ETF funds have a better tracking index effect, which is almost consistent with the index trend, and can almost reach 100% positions, and the fund utilization effect can reach 100%, while ordinary open-ended funds or open-ended index funds can reach 95% positions at the highest, and 5% of fund contracts are relatively inaccurate due to tracking.
(5) Effectively avoid the Black Swan incident: buying an ETF is equivalent to buying shares of a package of companies in related industries or indexes, and you don't need to look at financial analysis companies, just need to analyze the trend of related industries or the broader market. In addition to reducing the workload of research, it can also avoid the risks of individual stocks thunder and black swan, and holding ETF is more secure.
(6) Lower investment threshold: Everyone knows that Maotai is a bull stock, but the price of buying 100 shares is above100,000, which ordinary small retail investors can't afford, but the consumption ETF can fully seize the opportunity. ETF prices are generally cheaper, most of which are not higher than those in 3 yuan. Etfs can be traded like stocks, and the minimum trading unit is 100, and the unit price is very cheap.
(7) Tax advantage: ETF transactions do not require stamp duty, and ETF fund dividends do not require income tax.
(8) Avoid stock price manipulation and interest transfer: In the individual stock investment game, the banker has the advantages of capital and information, and even colludes with listed companies to manipulate the stock price. ETF funds are more transparent than other equity funds, which avoids some benefits of fund managers.
(9) Realizing global investment: There is no need to open separate stock accounts such as Hong Kong stocks and US stocks. At present, there are many ETFs in Hong Kong stocks and US stocks, through which investors can achieve global diversification and spread risks.
Investors should bear the fluctuation of the target price when investing. These fluctuations may come from national macroeconomic changes, interest rate trends, investor sentiment, liquidity fluctuations, unreasonable fluctuations caused by operational errors and so on. Before investing, investors should clearly understand the potential risk factors in the investment process, so as to better predict the income and avoid risks reasonably.