What is ETF equity fund? ETF stock funds usually refer to transactional open index funds. If you want to know what ETF stock fund exchange is, you have to start with trading open index funds. Transactional open-end index funds, also known as ExchangeTradedFunds (commonly known as "ETF"), are open-end funds traded in trading centers, and the subscription of funds is variable. Transactional open-end index fund belongs to this special plan of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can subscribe or withdraw funds from private equity companies, and at the same time, they can trade ETF market share at this price in the secondary market like closed-end funds. However, the subscription withdrawal must be based on a basket of stocks in order to obtain the fund subscription of a basket of stocks or the exchange fund subscription.
According to different investment methods, ETFs can be divided into index funds and active management method funds, and most ETFs overseas are index funds. At present, ETFs issued in China are all index funds. ETF index fund refers to the right to use a basket of individual stocks, that is, index funds that are traded on the stock exchange like individual stocks. The transaction price and the net value of the fund subscription fund are basically the same as the tracked index value.
Advantages of ETF stock fund: diversification of investment, reduction of operational risk, taking into account the characteristics of individual stocks and index funds, combining the advantages of closed-end and open-end funds, low transaction cost, high compatibility for investors to hedge arbitrage on the same day, and can be used as a special tool for emergency hedging in the sales market.
What is ETF stock fund is introduced in detail. Next, we should pay attention to the wrong ideas when developing ETF investment funds, so as to make relative changes and reduce the loss of project investment.
Misunderstanding of investing in ETF funds: only for large shareholders. Many investors mistakenly believe that the investment threshold of ETF projects is too high. At least 100,000 companies have applied for redemption, and at least one million companies have applied for redemption. The method of applying for redemption of a basket of stocks is complicated and cumbersome, which is only suitable for investors with large funds. I think ETF market share can be listed and traded like individual stocks, without contract stamp duty, starting with one hand (100), and investors with small funds are fully capable of participating.
ETF investment fund misunderstanding 2: only profit in the big bull market. With the expansion of ETF application, many application countermeasures have nothing to do with the bull-bear link where the sales market is located. For example, the stock band operation strategy with profit opportunities in both ups and downs, the matching transaction strategy with profit opportunities in price difference changes, and the ETF that sells short the stock financing base price when the market falls.
ETF investment fund misunderstanding 3: only use speculative short-term speculation. What is ETF equity fund? Is ETF stock fund useful? ETF has the functions of buying, selling and equipping. As an index fund, ETF can shoulder the heavy responsibility of investing in medium and long-term index projects and constituting asset allocation, and its transaction cost and tracking deviation are much lower than those of ordinary open-end index funds. Subsequently, product innovations such as cross-border e-commerce ETFs, fixed-income ETFs, commodity ETFs and even leveraged ETFs have been released one after another, and ETFs can show more colorful medium-and long-term asset allocation solutions.
Mistake 4 of ETF investment fund: only keen on arbitrage trading. First, the instantaneous speed hedging arbitrage in the secondary market is only one of the many application countermeasures of ETF, and there is not much room for profit. In addition to stock band operation and asset allocation, many countermeasures such as intra-day T+0 trading, industry rotation, design style rotation, neutralization in sales market, long/short and so on have already been applied to actual combat drills. Even in arbitrage trading, hedging arbitrage of multi-countermeasure vicious events, futures arbitrage and cross-sales market hedging arbitrage are constantly expanding the application boundary of ETF.
ETF investment fund misunderstanding 5: I only feel that the risk is extremely high. Personal ETF almost runs in Man Cang, and its net value fluctuates greatly. However, ETF can be regarded as a "super stock" composed of many constituent stocks. Compared with a single stock, ETF can fully spread risks. For investors with little capital or poor stock selection ability, ETF is only a high-quality special tool to spread the unsystematic risk of stocks.
ETF investment fund misunderstanding 6: only pay attention to profound countermeasures. Find out what ETF stock fund is first, and then decide which countermeasure to use. Some investors believe that the more complicated the countermeasures of ETF trading, the top-level trading software, the higher the number of transactions, the higher the profit probability and the higher the profit. However, from practical experience, the complexity of ETF trading strategy, transaction rate and return rate are not necessarily proportional. In actual combat drills, individual investors also have many opportunities to analyze simple performance indicators and even use simple fixed investment strategies to obtain satisfactory returns.
ETF investment fund misunderstanding 7: market share changes are often mistaken. After some investors buy ETFs during the issuance period, it is very easy to mistakenly think that the market share of ETFs has changed, and feel how the business scale of ETFs they have purchased has suddenly shrunk dramatically. I think the market share of ETF when it was founded is different from that announced after its operation. After the establishment of each ETF, after the opening of the stock, before the announcement of the sale, it is necessary to carry out "market share conversion" to create 1 more visual contact between the net fund value of its ETF and the index value it tracks, which is convenient for investors to invest in the project after the sale.
Perhaps, it is also a change in market share in the opposite direction. For example, some ETFs originally converted market share according to five thousandths of the index value; After selling for a period of time, split it up and convert the market share according to 1% of the index value, so that the market share increases by 10 times, and the net value of the fund unit immediately becomes a few cents. Therefore, when investors look at the market share of ETF, they must see clearly whether it has been converted or split; The change of market share will lead to the change of unit net value and the relationship between ETF unit net value and its tracking index value.