Transactional open-end index fund (ETF) is an open-end fund that tracks indexes and can be listed and traded on the exchange.

Etf is an index fund.

First, ETF adopts an indexed investment strategy. By choosing a specific index, the fund manager constructs a portfolio according to the constituent stocks contained in the index, thus tracking the fluctuation of the index. If the index rises, ETF returns will also rise, and vice versa.

This investment method does not need to select individual stocks, which avoids the problem of stock selection; At the same time, it effectively disperses risks and avoids the impact of the rise and fall of individual stocks on overall income. For example, SSE 180ETF, by dispersing the funds into the 180 stocks of SSE 180 index, even if a stock fluctuates greatly, it will not have a great impact on the portfolio income of the ETF.

2.？ Etf is an open-end fund.

Secondly, ETF is an innovative open-end fund, which can be purchased or redeemed from fund management companies and traded in the exchange.

Generally speaking, the threshold for directly subscribing to fund management companies is relatively high, generally 500,000 copies. It should be noted that ETF is a physical purchase and redemption, and investors use a basket of stocks, that is, all the constituent stocks included in the index for purchase; When you redeem it, you get a basket of stocks. Only when one of the constituent stocks is suspended can a small amount of cash be used to replace the stock.

However, when trading on the exchange, ETFs can be listed and traded like ordinary stocks, and the share is not limited, and small and medium investors can also participate.

3.？ Advantages of etf

For investors, the transaction cost of ETF is relatively low, which is usually three ten thousandths or five ten thousandths like the commission of stocks, while the management fees of other funds are often much higher than that of stocks. In addition, ETF is widely favored by investors because of its standardized operation and transparent shareholding details.

China launched the first SSE 50 ETF in June 5438+February 2004. Up to now, the number of ETFs listed in Shanghai and Shenzhen Stock Exchanges has exceeded 100. As an innovative product, ETF has developed very rapidly and has been widely concerned and accepted by the market.