ETF is an exchange-traded open-end index fund, which is often called a tool for retail investors. The reasons are as follows: 1. The transaction rate is low.

There is a big gap between the management fees of ordinary index funds and ETFs.

The management fee of ordinary index funds is about 1.2%, and the management fee of ETF is about 0.2% (the management fees of the two will be different according to different trading platforms).

The difference in management fees between the two is about 1%.

For large retail investors, this rate varies widely.

Moreover, by comparison, when purchasing ETFs, the fund commission is only a few ten thousandths, and stamp duty is not required. ETFs further reduce the transaction rate.

2. Low investment threshold.

If investors buy stocks individually, and some leading stocks are often held in hundreds of lots, the investment threshold for investors will increase.

As an index fund, ETFs have lower investment thresholds. While meeting investors' investment target index sectors, the price of a single ETF share is relatively low, generally ranging from a few cents to a few yuan. Investors can purchase it even if they only spend a few hundred yuan.

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3. Investment difficulty is low.

Many investors have problems picking stocks or choosing to enter.

Clearly, this is an optimistic sector.

As a result, stock picking went wrong.

The rest of the stocks in the sector are up, but their picks are down; obviously if you want to get into the lows, you're locked in.

At this time, the problem of ETFs was solved very well, because I bought ETF index funds and invested in all stocks under the index according to certain rules.

If investors have optimistic sectors and purchase corresponding sector ETFs, as long as the investor's overall investment direction is correct, the fund can avoid investment losses caused by wrong stock selection to a large extent.

There is no need to worry about the entry time when buying ETFs, because judging from the long-term performance of the market, the income of the capital market is fluctuating to the upper right.

Choosing ETF can solve many problems for investors and reduce the difficulty of investment.

4. Risks are more dispersed.

ETF funds are equivalent to buying a basket of stocks. Each stock ETF fund includes investments in dozens or hundreds of stocks corresponding to the index.

The rise and fall of a single stock is difficult to shake the rise and fall of the index, and investors' investment risks are spread across dozens or hundreds of stocks.

5. Diverse profit methods.

ETFs can be subscribed and redeemed over the counter, or traded on the exchange.

When there is a difference in market prices between fund net values ??and ETFs, investors can conduct arbitrage operations to effectively avoid the discounts of general closed funds.

6. Better liquidity.

ETF liquidity is similar to stocks and can be traded in real time. Investors can sell ETF funds and the funds can be used immediately after completion, and the funds can be withdrawn to bank cards on the next trading day.

The information is relatively transparent.

ETFs change with the index, and the net value of the fund is linked to the index, and the fund information is relatively open and transparent.

How to buy ETF funds: 1. Open an on-site fund account or stock account at a securities company, and you can trade after making a deposit.

2. Investors choose the corresponding ETF based on the stocks or sectors they are optimistic about.

3. Investors without specific investment goals can first choose large investor ETFs, such as CSI 300, etc.

4. Select ETFs corresponding to recently popular industries.