In the primary market, ETFs apply for redemption shares through stock accounts; The trend is the same, belonging to two different ways of participation in the same product. (Some people buy funds through Alipay, JD Finance and lufax. This is the primary market)
What are the characteristics of on-site (secondary market) and off-site (primary market) subscription of ETF funds?
1, trading channels are different. On-exchange ETFs need to open stock accounts and trade like stocks. For off-site purchase and redemption, you can open a fund account through brokers, banks and third-party sales organizations. Generally speaking, you can buy OTC ETFs only if you have a stock account, and you can buy OTC funds only if you have a fund account opened by banks, brokers and funds.
2. The rates are different. Generally, there is no stamp duty for buying ETFs in the market (generally, there is a single 5 yuan minimum when opening an account, for example, buying 1000 yuan is also 5 yuan, which is not cost-effective. If the transaction volume is large, you can talk to the broker manager. I don't have 5 yuan restrictions, just in case). For off-site sales through banks, three-party sales and other channels, it is generally 1.2% when it is small. Most sales funds have discounts, which are not recommended by banks and the cost is particularly high.
3. smarter off-site. ETF on-site funds can't set automatic fixed investment, and they have to be operated manually, which is not particularly convenient for office workers who don't have time to look at the market. Fixed investment in different places can be set automatically. As long as there is enough money in the account, it is very convenient to easily realize regular purchase.
Does ICBC have one? How to choose?