ETF is the abbreviation of exchange traded fund, which is translated into "transactional open index fund" in Chinese, also known as exchange traded fund.

Fundamentally speaking, ETF is also an index fund, but the design of its trading mode is different from that of traditional index funds. The share of ETF is reflected in a basket of stocks. Simply put, when you buy an ETF, you essentially buy the corresponding stock portfolio indirectly. This leads to a big difference between ETF and traditional index funds, that is, 65,438+000% of the total fund assets are actually invested in stocks, while traditional index funds reserve cash for investors to redeem, so ETF is close to the index itself.

Money fund, also known as money market fund, is a fund that invests fund assets in money market instruments.