of course, it's an on-site transaction. It's a secondary market transaction. You can use the original securities account or fund account to trade.
ETF is the abbreviation of Exchange Traded Fund, namely "transactional open index securities investment fund", referred to as "transactional open index fund", also known as "exchange traded fund".
Specifically, ETFs have the following main characteristics: (1) The issuance and redemption of ETFs are only for the wholesale of institutional investors, not for the retail of individual investors; (2) When investors purchase and redeem ETFs, they usually use a basket of securities instead of cash; (3) The retail transaction of ETF is conducted at the market price during the normal trading hours of the stock exchange listed on the ETF. For individual investors, they can buy or sell ETFs at any time in the secondary market like buying and selling stocks and closed-end funds; (4) The transaction price of 4)ETF in the secondary market is very close to its unit net value, and there is generally no big discount or premium phenomenon; (5)ETF takes a market index as the target index, and tracks the target index by means of complete replication or statistical sampling, so as to obtain a return on investment close to the target index.
ETF has different investment methods from traditional securities investment funds. Traditional active stock investment funds mainly rely on the analysis of stocks by fund managers to make trading decisions. The method of ETF is completely different. Fund managers do not make buying and selling decisions according to their personal intentions, but passively decide the stocks they invest in according to the composition of index constituent stocks, and the proportion of investment stocks is also consistent with the weight of index constituent stocks. Each ETF tracks a specific index, and the tracked index is the "target index" of the ETF. Generally, the "underlying index" of ETF requires popularity, market representativeness, good liquidity, stability, objectivity and transparency in preparation. For example, SSE 5 Index meets the relevant requirements of ETF products and is suitable as the "target index" of the first ETF product of SSE. The net price of ETF can be published in real time and dynamically by the exchange market disclosure system together with the underlying index, and ordinary investors can buy and sell it synchronously according to the fluctuation of the index during trading hours, thus truly realizing many people's dream of "making money as soon as they earn the index".
ETF trading is exactly the same as that of stocks and closed-end funds, and fund shares are bought and sold among investors. Investors can trade with existing Shanghai securities accounts or fund accounts without opening any new accounts.
in essence, ETF is a special type of open-end fund, which combines the advantages of closed-end funds and open-end funds. Investors can purchase or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at market prices in the securities market like closed-end funds. However, the purchase and redemption of ETF must exchange a basket of stocks for fund shares or a basket of stocks for fund shares, which is one of the main characteristics of ETF different from other open-end funds. ETF is an open-end fund that tracks the changes of the "underlying index" and is listed on the exchange. Investors can buy and sell the index by buying and selling ETFs just like buying and selling stocks. Therefore, ETF can be understood as "stock index investment product". The coexistence of secondary market transactions and primary market subscription and redemption mechanisms provides channels and possibilities for investors to carry out arbitrage transactions when there is a price difference between ETF market prices and fund unit net value. It is the existence of arbitrage mechanism that makes ETF avoid the common discount problem of closed-end funds.