ETF generally refers to transactional open-end index fund, which is also commonly called Exchange Traded Fund (ETF), and is an open-end fund with variable fund share.

Transactional open 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 purchase 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 exchange a basket of stocks for fund shares or a basket of stocks 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 ETF market price and the net value of the fund unit. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.

Tips:

① The above information is for reference only. Users should not use this information to replace their independent judgment or make decisions only based on this information, which does not constitute any trading operation.

② Fund investment fluctuates with market changes, and it is possible to go up or down. It is recommended that you know the basic situation of fund products such as the direction of capital investment and risk types in detail before buying, and decide to buy fund products that match your own risk tolerance and asset management needs.

③ Ping An Bank also sells a variety of fund products on a commission basis, and the risks and investment directions of each fund are different. You can log on to the APP- Finance-Wealth Management-Fund Channel of Ping An Pocket Bank to find out and purchase.

Response time: April 23rd, 221. Please refer to the latest business changes announced by Ping An Bank in official website.

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