2.ETF funds consume more energy. If investors don't buy ETF funds, everything will be fine. On the contrary, they need to pay attention to the trend of the index tracked by ETF funds, otherwise they may miss the opportunity to sell the fund and lead to losses. If investors invest in OTC funds, investors only need to buy fund shares according to their investment objectives and sell them after holding them for a period of time. The possibility of loss is relatively small, and it doesn't need much effort, because the specific investment of the fund is decided by the fund manager. In contrast, investors are naturally more willing to invest in OTC funds, so fewer investors buy ETF funds.
3. The subscription and redemption of 3.ETF funds are more complicated. ETF funds need stocks for subscription and redemption. For example, an ETF fund holds four stocks, A, B, C and D, and each stock accounts for 1/4 position. When investors purchase, they can't directly use the fund to purchase. They must first purchase these four stocks according to the proportion of ETF funds, and then purchase ETF funds; On the contrary, so is redemption. What investors redeemed was not the fund, but these four stocks. Among them, stocks A, B, C and D are what we call a basket of stocks, and a basket of stocks is the stocks bought by ETF funds. Ordinary OTC open-end funds can be purchased directly with funds, and their redemption is also with funds. In contrast, the purchase and redemption process of ETF is obviously more complicated, and fewer investors choose to buy ETF.
4. Less publicity. ETF funds basically have nothing to announce. Only when investors take the initiative to pay attention will they get some information. However, many OTC funds began to advertise at the fundraising stage, frequently appearing in front of investors and selling their funds to investors at all levels. In this way, the popularity of ETF funds is relatively low compared with other funds, so fewer people buy ETF funds.
5. Easy day trading. ETF fund is an on-site fund, which trades in real time like stocks, and the on-site fund fee is low, which does not exceed three thousandths of the turnover. This makes it easy for investors to operate frequently in the fluctuation of fund prices, chasing up and down, but it increases the risk of loss, and there are also many handling fees accumulated by frequent operations.
6. Unable to make a fixed investment. ETF fund is an on-site fund and cannot be directly invested. All trading operations of funds require investors to manually operate in securities accounts, and it is likely that they will forget or miss the opportunity to buy funds.
7. High investment risk. The fluctuation of ETF fund price is not only affected by the fluctuation of a basket of stocks it invests in, but also by the relationship between market supply and demand, so the investment risk is greater than that of OTC funds.
8. Liquidity risk. ETF fund is the fund share bought and sold between users, and the buying and selling must match the specific investment order. If the fund market is not good and the trading volume is small, investors may not be able to sell the fund shares. Moreover, ETF funds use a basket of investment stocks, and the conditions for purchase and redemption are more stringent, and the liquidity risk is greater than that of ordinary on-site funds.
9. It is greatly influenced by market conditions. ETF funds not only invest in the secondary market, but also invest in the secondary market itself. The influence of market fluctuation is more obvious than that of OTC funds, and the net value fluctuates more.
10, there are many factors that affect the rise and fall of the fund. The factors that affect the rise and fall of OTC funds are mainly the top ten positions of funds and the operation of fund managers, while ETF funds are also affected by market fluctuations, large trading funds and fund turnover. Therefore, ETFs are less stable and buy fewer investors.