ETF funds are funds that are listed and traded on exchanges and have variable fund shares. Due to their low transaction costs and diverse trading channels, they have attracted more and more attention from investors.

So, what is the difference between ETF funds and ordinary funds?

How is the handling fee charged?

What is the difference between ETF funds and ordinary funds?

1. ETF funds can be traded on-site or over-the-counter, but many ordinary funds cannot be traded on-site and over-the-counter at the same time.

2. The risk of ETF funds is greater than that of ordinary funds.

Because the investment target of ETF funds is a basket of stocks and the stock market prices fluctuate greatly, the market risk of ETF funds is high.

In addition, ETF funds also have liquidity risks, systemic risks of the underlying index, tracking error risks, etc. Therefore, investors with average risk tolerance are not recommended to invest in ETF funds.

3. Position control is different. ETF funds can have a full position, while ordinary funds can only reach a maximum of 95%.

As an open-end fund, the total share of ordinary funds is not fixed, and its subscription or redemption changes. Therefore, 5% of the money needs to be left to deal with the net redemption situation when the redemption exceeds the subscription. That is to say, ordinary funds

Fund investment positions cannot reach 100%.

How is the handling fee charged?

Exchange-traded ETF funds generally do not charge subscription fees and redemption fees, and are exempt from stamp duty. They mainly charge commissions.

The specific charging standard depends on the regulations of each securities company. Generally, the minimum charge is about 1.5% of the transaction amount, and the maximum charge will not exceed 3% of the transaction amount. The single handling fee is not less than 5 yuan (some securities companies have no handling fee for trading ETF funds.

Minimum requirement of 5 yuan).

However, over-the-counter transactions of ETF funds are exchanged for stocks, not purchased directly, so certain subscription fees and redemption fees will be charged. Usually, the total entry and exit cost of over-the-counter transactions is about 2% of the transaction volume.

For example, if an investor has an ETF fund worth 10,000 yuan and the securities company's commission rate is 2/10,000, then the handling fee for the investor to buy the ETF fund is: 10,000*0.02%=2 yuan, which is charged at 5 yuan.