LOF funds are called "open-end funds" in English and "listed open-end funds" in Chinese. In other words, after the issuance of listed open-end funds, investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges. However, if investors want to sell the fund shares purchased at designated outlets, they must go through certain transfer custody procedures; Similarly, if you want to redeem the fund shares purchased online at the exchange, you must also go through certain transfer custody procedures.
LOF plays an active role in the fund market.
We know that LOF is actually an innovative trading platform. It is an open-end fund, which can be listed and traded on the exchange. After the issuance, investors can purchase and redeem fund shares at designated outlets or buy and sell funds on the exchange. Therefore, investors have more channels to conduct fund transactions. This is the convenience LOF brings to investors. For example, many investors are familiar with the secondary market and want to trade in the secondary market, and may not be willing to participate in the original open-end fund. Through the trading platform of LOF, investors can participate in open-end fund trading in the primary market and the secondary market, which greatly stimulates the enthusiasm of investors. (My trading assistant, accurately grasp the profit and loss of the account ...)
LOF is a new thing. At present, there is only one in the south, and its positive role in the market is not obvious. However, with the maturity of LOF, more funds will adopt LOF, especially if closed-end funds are converted into open-end funds by LOF, which will greatly activate the fund market. However, LOF's influence on the stock market is limited, and its influence is very indirect.
ETF is expected to make the blue chip market more active.
ETF is a real product innovation, and its obvious function is to guide the flow of market funds. The launch of ETF may make indexed investment more concerned, thus making index stocks the focus of market attention. ETF's unique arbitrage mechanism will strengthen the liquidity of index stocks and make market funds gradually flow to large-cap blue-chip stocks.
First of all, the launch of ETF will directly lead to the flow of funds to the index constituent stocks representing the blue-chip market. Especially in the initial stage of ETF, a large number of participants, institutional investors and some big customers will buy a certain number of index stocks. Take SSE 50 as an example, the current market value is around 250 billion. It is estimated that if the scale of Huaxia SSE 50ETF is 654.38+000 billion, it will push the SSE 50 index up by 37 points, or 4%, which will greatly enliven the stock market.
Secondly, because of the existence of ETF arbitrage mechanism, the liquidity of index stocks is guaranteed in the system. We know that the net value of ETF and a basket of stocks may be different. Once the price difference is large enough, there will be arbitrage opportunities. Under the action of arbitrage mechanism, investors need to buy and sell a package of stocks of the underlying index for subscription and redemption, thus completing arbitrage. It can be said that ETF will greatly improve the activity of large-cap blue-chip stocks.
Finally, the launch of ETF not only directly affects the constituent stocks of the index, but also may have a diffusion effect. For example, the launch of Huaxia 50ETF directly benefits the constituent stocks of SSE 50, attracting not only the funds of the fund itself, but also a large number of profit-seeking and arbitrage market funds.
In short, in the current depressed market, investors are also eager for market activity. The launch of ETF objectively plays a great role in active index stocks. Just like the upcoming SSE 50ETF, the constituent stocks entering the index are blue-chip stocks with excellent performance. In the current market situation, the activity of large-cap blue-chip stocks is conducive to attracting funds and promoting market development.
ETF started late overseas and developed rapidly.
Compared with other fund types, ETF appeared later. The first ETF-"TIPS" was launched by the Toronto Stock Exchange (TSE) at 1990, while the first ETF fund SPDR in the United States was born at 1993. However, although it started late, the development speed of ETF is very rapid. According to the statistics of American Index magazine, as of March 3rd, 2004, there were 363 ETF products in the world, with total assets of US$ 229.304 billion.
At present, there are 12 countries and regions in the world with ETF products, among which the United States is in an absolute leading position, and its ETF assets account for 70.34% of the world. Although Europe occupies a leading position in the number of ETFs, its assets rank only the third in the world. In terms of trading volume, the leading position of the United States is more prominent, accounting for about 92% of the global ETF trading volume of about 4.2 billion US dollars per day.