ETF is the English abbreviation of Exchange Traded Fund. The Chinese translation is "traded open-end index fund", also known as exchange-traded fund.

ETFs are essentially open-end funds, and there is no essential difference from existing open-end funds.

But it also has its own distinct personality in three aspects: 1. It can be listed and traded on the exchange, and investors can directly buy and sell ETF shares on the stock exchange like trading individual stocks and closed-end funds; 2. ETFs are basically index-based.

It is an open-end fund, but compared with existing index-type open-end funds, its biggest advantage is that it is listed on the exchange, and transactions are very convenient; third, its subscription and redemption also have its own characteristics, investors can only

Use a basket of stocks corresponding to the index to subscribe or redeem ETFs, instead of using cash to subscribe and redeem existing open-end funds.

The investment portfolio of an ETF usually completely replicates the underlying index, and its net value performance is highly consistent with the specific index it is focused on.

For example, the net value performance of the SSE 50 ETF is highly consistent with the rise and fall of the SSE 50 Index.

Exchange Traded Fund (ETF) is an open-end securities investment fund product listed and traded on an exchange. The trading procedures are exactly the same as stocks.

The assets managed by ETFs are a basket of stock portfolios. The types of stocks in this portfolio are the same as the component stocks included in a specific index, such as the Shanghai Composite 50 Index. The number of each stock is consistent with the proportion of the constituent stocks of the index. ETF trading

The price is determined by the value of the basket of shares it owns, known as the "unit fund's net asset value."

ETF is a special hybrid fund that overcomes the shortcomings of closed-end funds and open-end funds while integrating the advantages of both.

ETFs can track a specific index, such as the Shanghai Composite 50 Index; unlike open-end funds that use cash to subscribe and redeem, ETFs use a basket of index constituent stocks to subscribe and redeem fund shares; ETFs can be listed and traded on exchanges.

Because ETFs are easy to understand and have high market acceptance, since the first ETF product was launched in the United States in 1993, ETFs have developed rapidly around the world.

Over the past 10 years, 12 countries (regions) around the world have launched more than 280 ETFs, with assets under management reaching more than 210 billion US dollars.

Compared with closed-end funds, the characteristic of ETF is that it is an open-end fund and its share size can be changed.

If the amount of subscription is large, its scale will increase, otherwise it will decrease.

The size of a closed-end fund generally does not change after its establishment (it will only increase when the fund is expanded). Fund holders cannot request redemption of fund shares, but can only transfer them through secondary market transactions.

Since closed-end funds do not purchase and redeem fund shares based on the net value of the day like open-end funds, this often leads to large deviations between the price and net value of closed-end funds. Closed-end funds usually trade at a relatively large discount.

ETF is essentially an open-end fund. Fund holders can subscribe and redeem funds during trading hours. The existence of an arbitrage mechanism keeps the trading price basically consistent with the net value.

Compared with traditional open-end funds, the characteristic of ETFs is that although ETFs are also open-end funds, ETFs only accept subscriptions and redemptions above the "creation unit" (for example, 1 million shares), and the subscriptions and redemptions are based on a basket

Stocks (index constituents), this is different from ordinary open-end funds that accept cash subscriptions and redemptions.

The biggest difference between the two is that ETFs are listed and traded on the exchange at the same time. Investors can buy and sell ETFs at the market price at any time during the trading hours of the exchange. Investors know the transaction price at that time; while ordinary open-end funds can only be purchased and redeemed through subscription.

Back to over-the-counter trading, daily purchases and redemptions can only be made based on the fund's net value after the stock market closes (announced the next day). Investors can only know the actual transaction price on the second day after the order is issued.

If there are large market fluctuations during exchange trading hours, investors can trade ETFs to reflect the latest information and market changes in real time, gain new opportunities or avoid losses.

Even if investors in traditional open-end funds make the right decision long before the market closes, they may end up with an unsatisfactory closing price on the day, leaving them in a situation where correct judgment is of no use.

In terms of fees, the annual management fees of ETFs are far lower than actively managed stock open-end funds, and are also much lower than traditional index funds.

Finally, the transparency of ETFs is much higher than that of traditional open-end funds. In practice, fund managers usually announce the portfolio structure of ETFs every day before the ETF opens, while traditional funds generally announce this portfolio every quarter.

An exchange-traded open-end index fund (ETF) is a securities investment fund product listed and traded on an exchange. The trading procedures are exactly the same as stocks.

The assets managed by ETFs are a basket of stock portfolios. The types of stocks in this portfolio are the same as the component stocks included in a specific index, such as the Shanghai Composite 50 Index. The number of each stock is consistent with the proportion of the constituent stocks of the index. ETF trading

The price is determined by the value of the basket of stocks it owns, known as the "unit fund's net asset value."

ETF is a special hybrid fund that overcomes the shortcomings of closed-end funds and open-end funds while integrating the advantages of both.