ETF-linked fund is an index-linked fund, which has attracted more and more attention in the market. What are the investment advantages and disadvantages of ETF-linked funds compared with other investment funds?

Investment advantages of ETF-linked funds

1. The transaction cost is low, and there will be no repeated charges

ETF-linked funds will not charge investors management fees and custody fees for investing in ETF assets, thus avoiding repeated charges; As an index fund, the overall cost level of the linked fund is also relatively low, which reduces the investment cost and improves the convenience for investors.

2. ETF-linked funds can be converted into funds

Investors can convert with other funds issued by the same fund company according to their income expectations and personal preferences at different market stages, which is very flexible and convenient, optimizes asset allocation, maximizes income and meets investors' fund conversion needs.

3. ETF-linked funds can closely follow the investment target, and the fund's profit and loss transparency is high.

Linked funds can closely follow the investment target after being issued, and the fund's profit and loss transparency is high, which reduces the operational risk to a certain extent, and investors can also make fixed investment, so as to evenly share the risk and meet the investors' demand for fixed investment.

investment disadvantages of ETF-linked funds

1. ETF-linked funds, as index funds, are less dependent on managers, and cannot effectively avoid risks by changing investment strategies of fund managers.

2. ETF-linked fund is a high-risk stock index fund, which is greatly affected by market price changes and increases the risk simultaneously.