Etf in Chinese means transactional open-end fund, also known as exchange fund, which is translated from its English full name of Exchange Traded Funds, indicating an open-end fund that is listed on an exchange and whose fund share can be changed. Although it is an open-end fund, it also combines the characteristics of closed-end funds and is a special form of open-end funds. Investing in such funds can not only purchase or redeem fund shares through fund companies, but also trade in the secondary market like closed-end funds. ?

According to the different investment methods of funds, ETFs can be divided into two types: index type and active management type, but at present, ETF index funds occupy a dominant position with a large number.

At present, if the subscription threshold of etf index funds in the primary market is relatively high, it is at least 6.5438+0 million copies, and at least 800,000 cash is needed according to the net value. If it is a small and medium-sized investor, it has to be traded in the secondary market. The transaction cost is low and there is no stamp duty. The minimum transaction unit is 100 copies. T+0 trading mode is adopted for specific transactions, which can be sold in the secondary market without waiting for the account arrival date after successful subscription in the primary market; Similarly, after buying in the secondary market, it can be redeemed in the primary market or completed on the same day. However, I believe investors can see that such funds cannot be bought and sold in the same market on the same day, and must be carried out in different markets.

The trading of ETF funds in the primary and secondary markets involves cash, stocks and fund shares. Because ETF funds have a special physical subscription mechanism (a basket of stocks for fund shares or a basket of stocks for fund shares), when there is a difference between the transaction price in the ETF secondary market and the net value of the fund unit, investors can carry out arbitrage transactions.