1, what is an ETF fund?
ETF fund is a kind of general fund, the full name of which is transactional open index fund. The so-called trading fund is listed and traded, and investors can buy and sell like stocks.
Funds can be divided into closed-end funds and open-end funds, and ETF is a special type of open-end funds. Investors can purchase and redeem through fund companies, or buy and sell ETF shares in the secondary market. The management fee and custody fee of ETF are not high, and the transaction cost is much lower than that of ordinary open-end funds.
2. Is there a closed period for 2.ETF funds?
Generally, newly issued funds have closed periods, and ETF funds also have closed periods. After the fund subscription is completed and the fund contract is established, it will enter a closed period. During the closed period, it is not allowed to purchase and redeem funds, nor can it sell fund shares. The purpose of the closed period is mainly to ensure the smooth progress of the initial opening of the fund.
The closure period is generally 1-3 months, depending on the fund's opening speed, initial scale and other factors, but it will not exceed 3 months at most. The length of the closed period is not necessarily related to the expected return of the fund, but the shorter the closed period, the higher the risk may be.
At the end of the closure period, it will enter the normal subscription and redemption period. Some funds will be open for subscription in the later period of the closure period, allowing investors to subscribe for funds, but they cannot redeem fund shares.
The above content about whether ETF funds have a closed period, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.