Transactional open-end index fund is a unique type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can subscribe or redeem the market share of funds from equity investment fund enterprises, and at the same time, they can trade market share in the secondary market according to the quotation like closed-end funds. However, if you purchase and redeem, you must get a fund subscription with a basket of stocks or exchange the fund subscription for a basket of stocks. Because there are both secondary market transactions and subscription and redemption systems, when there is a price difference between the quotation and the net value of the stock fund unit, investors can arbitrage futures. The existence of hedge arbitrage system prevents the discount rate of closed-end funds.
Trading open-end index funds are essentially index funds, but different from traditional index funds, trading open-end index funds can be sold in trading centers, which means investors can trade like stocks. Pre-tender estimate index value? Stock funds. Transactional open-end index fund is a unique open-end fund, which not only absorbs the advantages that closed-end funds can buy and sell on the same day, but also enables investors to subscribe for transactional open-end index funds in the secondary market like trading closed-end funds or individual stocks. It also has the advantage that open-end funds can be subscribed and redeemed at will. Investors can subscribe or redeem transactional open-end index value funds from equity investment fund enterprises just like subscribing transactional open-end funds.
The subscription and redemption of trading open-end index funds must be obtained with a basket of stocks or exchanged with a basket of stocks. Because of this unique commodity purchase and redemption system, investors can carry out futures arbitrage when there is a price difference between the transaction price in the secondary market of transactional open index funds and the net value of equity funds. In addition, the price quotation of trading open-end index funds is basically consistent with the net value of stock funds, so it is not easy to encounter the discount rate problem of closed-end funds.