ETF foundation triggers cross-market arbitrage. Therefore, the real-time quotation of ETF funds rarely has a large discount premium, but there are many graded funds, which can be viewed in the graded music.

When the secondary market price is lower than the net share value, investors buy ETFs in the secondary market, then redeem their shares in the primary market and sell them in the secondary market, so that the total discount arbitrage will be reduced, while the premium arbitrage is the opposite.

The high one is called premium, and the low one is called discount. At present, the discount rate of sealing base has been reduced a lot. The higher the discount rate, the cheaper it is. Spend less money to buy things of the same value, the greater the profit space for long-term holding, so there was speculation some time ago.

Fund discount rate is the most critical reference index to grasp the investment of graded funds. Generally speaking, the premium rate indicates that the market is optimistic about the fund, but the higher the premium rate, the higher the risk.

Extended data:

ETF fund characteristics:

Transactional open index funds are essentially index funds, but different from traditional index funds, transactional open index funds can be listed on exchanges, allowing investors to buy and sell a fund representing the "underlying index" like buying and selling stocks.

Transactional open-end index fund is a special open-end fund, which not only absorbs the advantages that closed-end funds can trade in real time on the same day, but also allows investors to buy and sell closed-end funds or stocks.

Buying and selling trading open-end index fund shares in the secondary market; It also has the advantage that open-end funds can purchase and redeem freely. Investors can buy or redeem the shares of transactional open-end index funds from fund management companies just like buying and selling open-end funds.

The subscription and redemption of transactional open index funds must be exchanged for a basket of shares or a basket of shares.

Due to the existence of this special physical purchase and redemption mechanism, investors can carry out arbitrage trading when there is a difference between the transaction price in the secondary market of transactional open index funds and the net value of fund shares.

Baidu Encyclopedia-Trading Open Index Fund