What is the difference between redemption and selling in ETF?
The threshold of 1 is different: the redemption threshold in ETF is very high, generally 500,000 or 6,543.38+00,000, with the minimum number of sales 1 lot and the first 100 lot.
2 Different trading objects: During redemption, the trading object is the fund company and the selling object is other investors.
3 different assets obtained: after redemption, investors get a basket of stocks, and when they sell, investors get funds.
4 different rates: redemption fee, that is, redemption fee, paid to the fund company; The selling fee is the trading commission paid to the broker.
In fact, investors can use subscription, redemption and trading to arbitrage ETF. When ETF has a high premium to its net value, they can buy it first and then sell it in the secondary market.