ETF and index fund open-end fund, these two kinds of funds take a specific index in the stock market as the investment target, and many investors can't tell the difference between them. So is ETF an index fund? What are the characteristics of ETF funds brought by the following small series? This will do you a lot of good. Let's have a look.
What are the characteristics of ETF funds?
Diversification of assets: ETF funds usually hold many different types of assets, such as stocks, bonds and commodities. In order to realize asset diversification and spread risks.
Trading flexibility: ETF funds can be listed and traded on the exchange like stocks. Investors can buy and sell ETF shares at the market price during the trading day, which is highly liquid.
Low cost: compared with other funds, ETF funds usually have lower management costs and transaction costs. This is because ETF funds use passive investment strategies to track specific indexes or asset portfolios, thus avoiding the cost of active management.
Transparency: ETF funds publicly disclose their positions and net assets, so that investors can know their asset allocation and value in real time and reduce information asymmetry.
Dividend income: investors who hold ETF funds can get dividend income, which depends on the income of assets held by the fund.
How does the fund invest in stocks?
Understand fund types: different fund types invest in different stock markets or industries. For example, there are domestic equity funds, international equity funds and industry equity funds. Knowing the type and investment scope of the fund is helpful to choose the right fund.
Research fund performance: check the historical performance, investment strategy and management team of the fund. Pay attention to the investment return, risk level and cost of the fund.
Opening an investment account: Choose a suitable securities company or fund broker and open a personal investment account.
Deposit of funds: deposit investment funds into an investment account.
Choose a fund: according to your investment objectives and risk tolerance, choose a suitable stock fund.
Purchase fund: purchase the selected fund shares through the investment account during the trading hours.
Continuous monitoring: pay attention to the investment status of the fund regularly and understand the market situation and fund performance.
Is etf an index fund?
Etf fund is essentially an index fund, but it is different from the traditional index fund. Etf funds track a specific index and buy all or part of the stocks in the index. Investors can buy and sell funds representing the "target index" just like buying and selling stocks.
What's the difference between index funds and etf funds?
1, different trading methods
Etfs are generally purchased through the secondary market in the market, and the ETF fund price is refreshed every 15 seconds, and investors buy and sell according to the real-time price of the fund. Index funds are both on-site and off-site, and the price of subscription and redemption needs to be based on the net value of the fund after night accounting and proofreading by the fund company and the custodian bank. In addition, etf funds cannot handle fixed investment, while index funds can.
2. The handling fee is different from the management fee.
The fees and management fees of ETFs are lower than those of index funds. Etf funds are traded in the secondary market, and there is no need to pay subscription fee and redemption fee, and the commission fee is generally only a few ten thousandths. In addition to fund management fees and custody fees, index funds also need to charge subscription fees and redemption fees.
3. Dividends are distributed in different ways.
Etf funds only have cash dividends, while index funds have cash dividends and dividend reinvestment.
4. The transaction scale is different.
In the primary market, the minimum subscription and redemption unit of ETF funds is generally 500,000 or 6,543.8+0,000. In the secondary market, the minimum buying unit of ETF funds is 1 lot, and the number of 100 lots is 100, and each purchase must be an integer multiple of 100. The subscription of index funds has thresholds of 65,438+0 yuan, 65,438+00 yuan and 65,438+0,000 yuan according to different fund products and different fund issuers.
Seize the stocks with continuous daily limit.
In the mid-line stock picking skills, if you want to make a medium-long line layout, you must look at the current market situation. You can refer to the annual line (250 antennas) and semi-annual line (120 antennas) of the market index. If the trend is above the annual line and the semi-annual line, it means that it is not a bear market at present. In the face of national policies, investors should not be lucky enough to grab the rebound or choose to buy people, but should wait and see to clear their positions. If the stock market rises sharply, it is necessary to follow the trend and hold shares in the medium term.
Mid-line stock selection should be comprehensively analyzed from six aspects: K-line shape, technical index, relative price, company fundamentals, market trend and stock theme. We should give up some stocks with high P/E ratio and prices much higher than their intrinsic values.
As for how to seize the stocks with continuous daily limit? The initial share price rose by more than 6%; Must be "heavy"; The greater the increase, the stronger the trend and the more favorable it is. Among the key conditions of daily limit, the opening price is 2-3 points higher and the opening price is not more than 2 points lower. The decline process cannot be heavy, and the heavy volume is suspected of shipping; The closing price is near yesterday's closing price, so it is best not to form a gap.