With the change of people's financial management concept, we need more financial management knowledge, and we need to constantly enrich our brains to deal with various problems encountered in financial management, such as: What does ETF link fund mean? What is the difference between ETF fund and ETF linked fund? We have prepared relevant contents for your reference.

What does ETF link fund mean?

What is an ETF linked fund? Simply put, it is to invest most of the fund assets in ETF funds that track the same underlying index in the portfolio. Generally speaking, it is a fund that invests in ETF funds. ETF linked funds are OTC funds. The establishment of ETF-linked funds has solved the demand that OTC investors cannot directly invest in ETFs, that is, "funds for investment funds". Generally speaking, the goal of ETF-linked funds is to follow ETF funds closely and adopt an open operation mode.

What is the difference between ETF fund and ETF linked fund?

The differences between ETF funds and ETF linked funds are mainly manifested in the following aspects:

1, the investment threshold is different: generally speaking, the investment threshold of ETF funds is higher than that of ETF linked funds.

2. There are differences in investment targets: ETF funds are a basket of stocks, while ETF linked funds are funds that invest in ETF funds and invest in ETF funds that track the same target index.

3. There are differences in purchase channels: ETF funds belong to on-site funds and need to be purchased or redeemed through securities companies, while ETF-linked funds belong to off-site funds and can be traded through third-party platforms such as banks.

4. There are differences in trading restrictions: ETF funds can buy and sell, purchase and redeem in the primary and secondary markets, while ETF-linked funds can only purchase and redeem.