First, the advantages of dividend-paying etf funds
1, trading is flexible. You can buy an etf fund on the same day and then sell it on the same day. You can trade multiple times in one day.
2, transparent operation, some funds are mostly index funds, stock selection rules are more open and transparent, etf funds are purchased by stocks, so the variety and proportion of stocks held are generally announced, so for ordinary investors, etf funds are completely transparent, which can avoid risks such as shady transactions.
3, the rate is relatively low, management fees or transaction fees, etf funds are much lower than ordinary stock funds.
Second, the dividend rules of dividend etf
1. Fund income is distributed in cash.
2. Each fund share has the same distribution right.
3. The fund manager regularly evaluates the excess rate of return of the fund relative to the underlying index every quarter. Only when the fund's cumulative rate of return approved on the fund's income evaluation date exceeds the cumulative rate of return of the underlying index by more than 65,438+0% in the same period can the income distribution be carried out.
4. Principles for determining the proportion of fund income distribution. According to the actual situation of the quarterly dividend of the share capital of the dividend index of the Shanghai Stock Exchange, we will strive to achieve an average distribution of dividends every quarter, so that the fund units after the distribution of net income will be as close as possible to one thousandth of the underlying index. According to the nature and characteristics of the fund, the income distribution of the fund does not need to make up for the floating loss, and the net value of the fund shares recovered after the income distribution may be lower than the face value.
5, the annual fund income distribution ratio shall not be less than 90% of the annual fund income available for distribution. Income distribution shall not be carried out within 3 months from the effective date of the fund contract, and the fund income distribution shall be carried out up to 4 times a year.
Third, the trading method of dividend etf
The way of buying and selling is the same as that of ordinary stocks, and the way of subscription/redemption is different from that of ordinary funds, which can only be carried out in stock exchanges. The minimum share of fund subscription and redemption is 500,000.