ETF fund is the full name that most of us buy, and it is a transactional open index fund. Because this kind of open index fund can give full play to the advantages of fund managers. According to the change of market environment, managers can take certain changes to increase or decrease positions, and then this investment method can be split into small shares like ordinary stocks, that is, when the net value is one yuan to three yuan, or when the index rises like an index, it will make money, and when the index falls, it will lose money, which is corresponding.
The simple index fund itself is to look at the index, because the cost of looking at the CSI index or Nasdaq index is lower, and the biggest advantage lies in the low cost, because it changes according to the index itself. If the index goes up, it will make money, and if it goes down, it will lose money, so there is basically no need to take the initiative to operate, so the cost is relatively low. This handling fee rate is still low when buying, and the recovery rate is naturally lower from the investment point of view.
It is naturally different for index funds to adopt different indexes and methods, because the market scope covered by indexes is different and the risk-return characteristics are different. Some use CSI 100, some use SSE 180, some use SZSE 100, and some use NASDAQ 500 and CSI 300. You see, this different direction is different in itself. The Shanghai and Shenzhen 300 Index has something in common with overseas investment market index funds, which can play a role in diversifying investment returns and investment risks.