For example, the premium rate of an ETF fund is relatively high, the net value of the primary market is 100 yuan, and the price of the secondary market is 95 yuan. Investors can buy ETF shares in the secondary market and then sell them in the OTC market to earn the difference. For example, the premium rate of an ETF fund is relatively low, the secondary market price is 100 yuan, and the net value of the primary market is 95 yuan. Investors can buy fund shares in the primary market and then sell them in the market to earn the difference.
In addition, the premium rate of ETF funds should not be too high. If the premium rate of ETF funds is too high, it means that the market price is chaotic and the follow-up trend of funds is unknown, which is not conducive to investors' investment decisions.
Advantages of ETF funds:
1, the transaction rate is low. There is a big gap between ordinary index funds and ETF funds in management fees. The management rate of common index funds is about 1.2%, while the management rate of ETF is about 0.2% (depending on the trading platform, the management rate of the two will be different). Moreover, the commission for purchasing ETF funds is only a few ten thousandths, and stamp duty is not required. In contrast, the transaction rate of ETF is further reduced.
2. The investment threshold is low. If investors buy stocks alone, some leading stocks are often hundreds of thousands of lots, and the investment threshold of investors will be raised. As an index fund, ETF lowers the investment threshold while meeting the investor's investment target index, because the single share price of ETF is relatively low, generally between a few cents and several pieces, and investors can buy and participate even if they spend only a few hundred pieces.
3. Investment is difficult. ETF is an index fund, which invests in all stocks under the index according to certain rules. If investors have optimistic sectors and buy corresponding ETF funds, as long as the overall investment direction of investors is correct, investment losses caused by stock selection mistakes can be largely avoided.
4. The risks are more dispersed. Buying ETF funds is equivalent to buying a basket of stocks, and each ETF fund contains investments in dozens or hundreds of stocks corresponding to the index. The rise and fall of a single stock is difficult to shake the rise and fall of the index, and the investment risk of investors is shared by dozens or hundreds of stocks.
5. There are various ways to make profits. ETFs can be purchased and redeemed off-site or traded on-site. When there is a difference between the net fund value and the ETF market price, investors can arbitrage, which effectively avoids the discount problem of general closed-end funds.
6. Better liquidity. The liquidity of ETF is similar to that of stock, and it can be traded in real time. After the investor sells the ETF fund, the funds will be received immediately, and the funds can be withdrawn to the bank card on the next trading day.