Easy-to-use open-end index fund, also known as exchange-traded fund (ETF), is an open-end fund with variable fund share, which is listed and traded on the exchange.
Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares in the secondary market at the market price like closed-end funds. However, the purchase and redemption must use a basket of shares for fund shares or use a basket of shares for fund shares. Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the market price of ETF and the net value of fund units. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.
According to different investment methods, ETFs can be divided into index funds and actively managed funds. Most foreign ETFs are index funds. ETF launched in China is also an index fund. ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and fund share net value trend are basically consistent with the tracked index.
Therefore, investors buying and selling an ETF is equivalent to buying and selling the index it tracks, and can get basically the same income as the index. Usually, it adopts a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.
Domestic development
The initial fundraising scale of the first batch of cross-border ETFs is 5.2 billion yuan.
According to the announcement information, the net subscription amount of Huaxia Hang Seng ETF products during the fundraising period was 3.585 billion yuan, and the total number of effective subscriptions was 265,438+0.504; The net subscription amount of E Fund Hang Seng State-owned Enterprise (QDII-ETF) during the fundraising period was 65,438+0,665,438+0.6 billion yuan, and the total number of effective subscriptions was 3,092. Two products * * * raised 5.2065438 billion yuan.
In addition, the issuance of the first batch of two cross-border ETF linked funds ended, and the subscription ended on August 18, 2065438.
On May 25th, 20 19, Huaxia Fund, southern fund Fund, E Fund and Huaan Fund simultaneously released the prospectus and share offering announcement of their mutual exchange ETF products. Four products will be released on May 28th, which may be limited by the qualified domestic institutional investor (QDII) quota, so the upper limit of fundraising scale has been set.