What's the difference between etf funds and ordinary funds?
1. Differences in nature: ETF funds are exchange-traded funds, while ordinary funds are open-end funds. ETF funds are traded in a similar way to stocks, and can be listed and traded on stock exchanges, while ordinary funds are purchased and redeemed through fund companies.
2. The difference of transaction price changes: the transaction price of ETF funds changes in real time, while the transaction price of ordinary funds is the net value determined after the daily closing. This means that if you want to buy and sell ETF funds during the trading day, you can trade at the market price, while ordinary funds need to wait until the next trading day to determine the trading price.
3. Different fees: ETF funds usually have lower management fees and transaction fees because their trading methods are more efficient. General funds may charge higher management fees and sales fees because they need more manpower and material resources to manage and sell.
How to choose novice etf fund and general fund?
If investors pursue market returns, then it is best to choose etf funds. Etf funds invest in a specific index and buy some or all of the stocks in the index in order to obtain the same income as the index and pursue market returns. If investors pursue high returns, then it is better to choose ordinary funds, such as partial stock hybrid funds and stock funds, to pursue performance beyond the market.