There are two main ways to buy and sell ETF funds: primary market and secondary market. Maybe many people still don't understand, so let's put it in a popular way. The primary market here refers to fund companies and banks, and the secondary market is the stock market. I can purchase and redeem this fund in the primary market or buy and sell this fund in the secondary market.

However, ETF is a special fund, and the main trading objects in the primary market are institutions and large households. There are two main reasons: first, the subscription of ETF in the primary market means that investors exchange a designated basket of index stocks (ordinary index funds use cash) from fund management companies for a fixed number of ETF fund shares; Redemption is to exchange a fixed number of ETF fund shares from the fund management company for a basket of index stocks (not cash). -think about it, ordinary retail investors can't be so empty; Second, the ETF trading threshold in the primary market is very high, with a minimum of 300,000, and some even need 1 10,000.

Therefore, retail investors buy and sell ETF funds mainly through the secondary market, because the process and method of buying and selling ETFs in the secondary market are basically the same as closed-end funds, and we can trade according to the market price at that time.

Now let's go back to the question at the beginning. Since gay friends bought this ETF fund on the exchange, it should be sold on the exchange. In other words, for us small retail investors, there is no possibility of arbitrage in the primary and secondary markets.

Therefore, gay friends often asks himself why he can buy ETF funds without spending 1 10,000, which is actually the truth.