The etf of the fund refers to the transactional open index fund, which is an open fund with variable fund share listed on the exchange. According to different investment methods, ETFs can be divided into index funds and actively managed funds, and most overseas ETF funds are index funds. The above is the meaning of etf of the fund.

Advantages of ETF funds over open-end funds

1.ETF funds are sold on the exchange and can be traded at any time within one day, which is convenient for trading. Generally, open-end funds are only open to the public once a day, and investors can only trade once a day;

2.ETF funds pay a basket of stocks when redeeming, so it is not necessary to keep cash, which is convenient for managers to operate and can improve the management efficiency of fund investment. Open-end funds usually need to deposit some cash to redeem. When investors of open-end funds redeem their market share, they often make fund custodians constantly adjust their investment composition, and the resulting taxes and losses of some investment opportunities are borne by these long-term investors.

This article mainly talks about the meaning of etf and related knowledge points, and the content is for reference only.