With the improvement of people's income and financial awareness, more and more people begin to try various financial management methods, such as funds, stocks, bonds and so on. In recent years, with the development of financial markets, non-monetary exchange traded funds (ETFs) as a new investment tool have gradually attracted people's attention. Here, let's talk about what is a non-monetary exchange-traded fund and what should be paid attention to when choosing investment tools.

1. What is a non-monetary exchange traded fund?

Non-monetary exchange-traded funds are a kind of funds traded in stock exchanges, which usually represent primary assets, such as gold and Nasdaq index. Unlike money funds, the goal of non-money funds is not to pursue short-term profits, but to obtain income through low-risk and small-fluctuation transactions. The volatility of these funds is directly proportional to the index, which means that the price of ETF will change with the change of the index.

2. Characteristics of non-monetary exchange-traded funds

Flexible and convenient trading: ETF is traded on the stock exchange, and investors can buy and sell easily and quickly. However, it should be noted that since the price of ETF will fluctuate with the fluctuation of the index, investors need to pay attention to the changes in the market and make decisions.

The risk is relatively low: As ETF is a passive investment method, tracking a specific index, the risk is relatively low compared with active funds. At the same time, ETF has little contact with cash when trading, which means that ETF has the characteristics of risk dispersion. Even if a constituent stock falls, the value of the whole ETF will not fall as badly as the stock.

Lower cost: Compared with other funds, the management cost is cheaper. Therefore, according to the current standards, it is more cost-effective to choose to acquire ETF. However, it should be noted that when purchasing ETF, you should carefully read the sales documents of the fund and compare them with other similar funds in the market.

3. Suggestions on selecting non-monetary trading funds

First of all, investors need to know basic and technical knowledge in order to make better investment decisions.

Secondly, pay attention to the return, volatility and market prosperity of ETF, evaluate the return and risk of ETF, and ensure the balance between return and risk management.

In addition, investors need to pay attention to the historical performance and fundamentals of funds, allocate ETFs in the market and choose the best ETFs.

Finally, because ETF can cover the whole stock market well, investors are advised to allocate such funds in a balanced way to avoid a high proportion of heavy positions.

To sum up, as a new investment tool, non-monetary exchange-traded funds have the characteristics of flexible trading, relatively low risk and low cost. When choosing investment tools, investors need to pay attention to the fundamentals and technical aspects of the fund, the yield, volatility and market prosperity of ETF, and evaluate the returns and risks of ETF. At the same time, the ETF in the market is configured to avoid a high proportion of heavy positions. Paying attention to the market situation and grasping the pulse of the market can enable investors to avoid losses and earn more profits in stock trading.