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The difference between index funds and etf funds
The difference between etf and index fund lies in: different investment channels; Different trading methods; Salvation is different. Buying and selling ETFs in the market means opening a stock account. The index is purchased and redeemed over the counter, and can be traded on common platforms such as Alipay and Tian Tian Fund. Several ETF transactions have timely prices. You need to quote yourself for buying and selling, and then wait for others to make a deal. If no one accepts your offer, the transaction will fail, and you may not be able to buy or sell it today. The index is a transaction with fund companies, fund companies; It is said that ETFs are traded on the floor. In fact, that is for most people, but it can still be purchased and redeemed, but the threshold is relatively high. At present, it seems to be 500 thousand shares. Moreover, the purchase of ETF is in exchange for a basket of stocks, which is the position in ETF. Lof is not suitable for long-term fixed investment. If you make a long-term fixed investment, the fund style will continue to change, because lof needs to actively manage the fund. At this time, the fund manager will be changed, so the style will also change. Moreover, most funds have no long-term fixed investment, which is risky. Holding ETF for a long time will reduce the income, because the price of ETF will keep falling during the callback process. In addition, the market in China will change constantly, and it will go up and down. As long as you don't take profits in time, you will also make your own gains go up in smoke. In fact, the off-site fund is not suitable for doing T, and the on-site F can do the problem. You can directly match the transaction price of the secondary market through the brokers in the trading system, and the handling fee is relatively cheap. Buying and selling can be directly carried out for price difference operation. Simply put, it is fast-forward and fast-out, and get some benefits. Investors can be short or long. Both of them have different trading restrictions and quotation frequency in the place of purchase and redemption. In short, ETF has a higher trading threshold, while lof supports the participation of ordinary investors. Although the operation is different, it will be relatively simple.