In other words, it is a fund that invests in ETF (short for target ETF), closely tracks the performance of the underlying index, pursues the minimization of tracking deviation and tracking error, and adopts an open operation mode.
Extended data
Trading open index securities investment fund, referred to as ETF, manages stock portfolio. The types of stocks in this portfolio are the same as those in a specific index, such as the SSE 50 Index, and the number of each stock is consistent with the proportion of the constituent stocks of this index. The transaction price of ETF depends on the value of its stock portfolio, that is, the "net asset value of unit fund".
ETF's portfolio usually completely replicates the underlying index, and its net performance is highly consistent with the specific index pegged. For example, the net performance of SSE 50ETF is highly consistent with the rise and fall of SSE 50 index. The Guidelines define three types of investment scope of ETF-linked funds: portfolio securities that track the same underlying index (target ETF); Constituent stocks and alternative constituent stocks of the underlying index;
Other securities as stipulated by China Securities Regulatory Commission. At the same time, among ETF-linked fund properties, the target ETF shall not be less than 90% of the fund's net asset value. The subscription, subscription and redemption rates of ETF linked funds can refer to the relevant rates of open-end funds. Subscription and subscription shall be made in cash.
Baidu encyclopedia -ETF connection fund