ETF fund, namely exchange-traded fund, is an open-end fund that can be listed and traded on the exchange.

The design of such funds takes into account the arbitrage mechanism. Because you can buy it in cash or in a basket of stocks, there will be some cost differences between the two different ways. As long as the spread reaches a certain level, investors can achieve risk-free arbitrage.

For example, a constituent stock is suspended due to major benefits such as share reform or restructuring, and it can be sold by buying ETF funds when it resumes trading. If you buy it the day before the resumption of trading, it can basically be said to be risk-free arbitrage.

Sometimes a constituent stock suddenly rises and falls, and the price of ETF funds is often not reflected in time. If you seize the opportunity of shorting, you can also achieve arbitrage.

Tips:

1. The above instructions are for reference only and do not make any suggestions.

2. There are risks in entering the market, so investment needs to be cautious. Before making any investment, make sure that you fully understand the investment nature and risks involved in the product, and then judge whether to participate in the transaction by yourself after carefully understanding and evaluating the product.

Reply time: 2022-0 1-30. Please refer to the latest business changes announced by Ping An Bank in official website.