With the continuous development and innovation of financial markets, ETF-linked funds are gradually accepted and loved by investors. ETF-linked fund refers to the fund that uses ETF as the underlying index. Almost all asset categories can be covered by ETF-linked fund, and its characteristics include low commission, low cost and high transparency. This paper will analyze the characteristics of ETF-linked funds from many angles.

first of all, a notable feature of ETF-linked funds is low commission. Compared with traditional investment products, the commission of ETF-linked funds is much lower, mainly because there is no need to pay high sales expenses. ETF-linked funds are mainly sold through electronic channels such as the Internet, which saves the high sales expenses that need to be paid in traditional fund sales, and can reduce the expenses of investors while ensuring fund management, which has also become a major advantage in attracting investors.

secondly, another feature of ETF-linked fund is its low cost. Because ETF linked funds invest in ETF index, the management fee of ETF index funds is generally low, and investors can obtain relatively stable income only by paying relatively low management fee. ETF-linked funds also avoid the front-end, back-end, redemption and other expenses of general funds, and the operating cost is extremely low.

thirdly, ETF-linked funds are highly transparent. Generally speaking, the redemption price of ETF-linked funds is closer to the net asset value than the market transaction price, that is, the net selling redemption price is closer to the net asset value. Investors can know the price and fund size of ETF-linked funds in real time in the trading market, thus improving the transparency of investors' investment.

fourth, ETF-linked funds have good liquidity. ETF-linked funds can be bought and sold freely in the stock exchange, and investors can quickly redeem and buy according to their own needs. Due to the high market position, large trading volume and excellent liquidity of ETF-linked funds, investors can trade more flexibly.

fifth, the potential risk of ETF-linked funds is lower than that of traditional funds. ETF-linked funds usually use more index stocks with higher dispersion, and the impact of instantaneous market fluctuations on funds is relatively low.

Generally speaking, ETF-linked funds have many advantages, such as low commission, low cost, high transparency, good liquidity and low risk. These advantages have also become an important factor for more and more investors to choose ETF-linked funds.