Hello: 1. Hedge fund, also known as hedge fund or arbitrage fund, refers to the combination of financial derivatives such as financial futures and financial options and financial organizations.

Financial funds that use high-risk speculation as a means and with the purpose of profit.

It is a form of investment fund and is an exempt market product.

It means "risk-hedged fund". Hedge funds are called funds. In fact, they are essentially different from mutual funds in terms of investment philosophy of safety, income and appreciation.

The so-called gold ETF fund refers to a financial derivative product that uses gold as its underlying asset and tracks the fluctuations in spot gold prices.

Mainland China is still in "virgin territory", and domestic investors know very little about gold ETF funds. However, gold ETF funds are extremely popular in overseas markets.

2. The operating principle of gold ETF is: large gold producers consign physical gold to fund companies, and then fund companies rely on this physical gold to publicly issue fund shares on the exchange and sell them to various investors and commercial banks.

Acting as the fund custodian bank and the physical custodian bank respectively, investors can freely redeem during the duration of the fund.

Gold ETFs are listed on stock exchanges, and investors can trade gold ETFs as easily as stocks.

Low transaction fees are a major advantage of gold ETFs.

Investors who purchase gold ETFs can avoid gold custody fees, storage fees and insurance premiums, and only need to pay management fees that are usually about 0.3% to 0.4%, compared with the average 2% to 3% of other gold investment channels.

Cost, the advantages are very prominent.

In addition, gold ETFs also have the advantages of safe custody and strong liquidity.

Due to the high price of gold, gold ETFs generally use 1 gram as a fund unit, and the net asset price of each fund unit is the spot gold price of 1 gram minus accrued management fees.

Its trading price in the securities market or secondary market price is based on the net asset price per share.