Today, Bian Xiao will show you how cross-border ETFs work.
"Don't put your eggs in the same basket" is an important principle known to the investment community.
In 2007, the first batch of QDII funds were snapped up when they went out to sea, but they all failed in the end. At present, the development trend of QDII funds has gradually changed from active management products to index products and FOF products, but its higher rate and longer purchase and redemption process are more suitable for medium and long-term investors.
The launch of cross-border ETF undoubtedly provides investors with a low-cost and efficient way to invest in overseas markets. At present, there are three cross-border ETFs in the market: Huaxia Hang Seng ETF and E Fund Hang Seng H-share ETF for Hong Kong stocks, and Cathay Pacific Nasdaq 100ETF for US stocks.
Subscription efficiency is lower than that of ordinary ETF, and arbitrage is more difficult.
However, due to cross-border fund transfer and even time zone differences, the redemption efficiency of cross-border ETFs is lower than that of ordinary ETFs in the Mainland. Invest in the fund shares subscribed on T day, which can be sold or redeemed on T+2 day. However, compared with the fund shares subscribed by ordinary QDII funds on T day, the redemption efficiency of cross-border ETFs on T+3 day is higher.
Therefore, compared with ordinary ETF arbitrage, the cost of cross-border ETF arbitrage can only be determined within two working days, and arbitrageurs need to bear the risk of price fluctuation for two days, which is more difficult and risky.
"There is no S&P 500 index futures in the mainland, but there are 24-hour futures in the Hong Kong market." Wang Hongxin, director of ETF and quantitative investment group of Bosera Fund, told Cai Shang reporter of China Business News that some brokers and private placements with trading qualifications in the Hong Kong market can hedge through Standard & Poor's 500 futures, and then lock in arbitrage gains. "At present, I am in contact, and some private placements and brokers are still very willing to participate."
But for most arbitrage investors, the disguised T+0 trading system in ETF primary and secondary markets is the main driving force for them to participate in arbitrage. The first batch of mainland cross-market ETFs Huatai Bairui CSI 300ETF has become one of the most active leading varieties at present because of the implementation of T+0 trading mechanism.
Due to the high threshold and difficulty of cross-border ETFs in arbitrage, the activity of cross-border ETFs is still far lower than that of mainland ETFs.
Low rate is the biggest advantage.
But low rate and high transparency are the biggest advantages of cross-border ETFs. At present, there are many QDII funds investing in Hong Kong and American stock markets, but the rate is high and the uncertainty of active investment is high.
The general QDII fund management fee is 1.8% or 1.85%, and the custody fee is 0.30% or 0.35%. E Fund Hang Seng China Enterprise ETF management fee is 0.60% and custody fee is 0.20%; Huaxia Hang Seng ETF is lower, with management fees and custody fees of 0.60% and 0. 15% respectively. The management fee and custody fee of Guotai Nasdaq 100ETF are 0.60% and 0.3% respectively.
In addition, cross-border ETFs are more conducive to investor band operation. Ordinary QDII funds can only be bought and sold through subscription and redemption, and the process of receiving funds is usually long, but cross-border ETFs are listed and traded in the secondary market, which, like ordinary stocks, is very suitable for band operation.
Provide convenient channels for overseas investment
Simply put, cross-border ETFs are equivalent to packaging a package of overseas stocks in the A-share market and trading them in the form of ETFs. In August 2006, Huaxia Hang Seng ETF and E Fund Hang Seng China Enterprise ETF were both approved for issuance. The most essential difference between the two Hong Kong stock ETFs lies in the difference of investment targets.
The investment target of Huaxia Hang Seng ETF is Hang Seng Index, which consists of 49 listed companies in Hong Kong stock market. It is the most influential stock price index reflecting the trend of Hong Kong stock market at present.
E Fund Hang Seng China Enterprise ETF investment target is hang seng china enterprises index. The index consists of 40 H shares with the largest market value and the most active trading, and is used to measure the performance of enterprises listed in Hong Kong and registered in the Mainland in the form of H shares.
There is a difference between the two in the way of "replenishing coupons and selling coupons" for T-day subscription and redemption. E Fund adopts "T+2" mechanism to replenish and sell coupons. Huaxia is a combination of two modes. For the redemption application submitted by "ordinary PD brokers", the T+2 voucher replenishment mechanism of Tongfangda is adopted; For the redemption application submitted by "special PD brokers", the mechanism of "T-day real-time replenishment and selling" is adopted. Relatively speaking, the combination of the two modes of Huaxia Hang Seng ETF can make the arbitrage operation more convenient.
Following the Hong Kong stock ETF, Cathay Pacific NASDAQ 100ETF was officially listed on May 5, 2008, and its first-day return rate has reached 12.09%.
At present, another ETF that invests in US stocks, Boss Standard & Poor's 500ETF, is being issued. The Standard & Poor's 500 Index is recognized as the vane of US stocks in the international market. It covers 500 representative listed companies in the United States and concentrates on large-cap stocks in the market, accounting for 75% of the total market value of the US stock market.
I believe that through the above study, you must know something about this knowledge point. I hope you know more about this knowledge, so that you can sum it up like a duck to water in the market.
Statement: Futures information comes from cooperative media and institutions, and is the author's personal opinion, which is for investors' reference only and does not constitute investment advice. Investors operate accordingly at their own risk.