Since the subscription of traded open index funds (ETFs) is to exchange fund shares with a basket of component bonds, the redemption is also to exchange a basket of component bonds instead of cash.
In order to facilitate investors who did not participate in secondary market transactions, "ETF Linked Fund" was born. The fund invests more than 90% of its assets in the target ETF, and adopts an open operation mode to purchase or redeem at the counter.
Exchange traded open index fund (ETF), also known as ExchangeTradedFunds(ETF), is an open fund with variable fund share.
It combines the operating characteristics of open-end funds and closed-end funds, and its share can be bought and sold in the secondary market, and can also be purchased and redeemed.