ETF refers to trading open index fund, which is also commonly referred to as exchange-traded fund. It is an open-end fund with variable fund share listed on the exchange. Compared with other funds in the market, ETF funds have the advantages of low transaction cost, flexible and convenient trading methods, less risk and stable income. So what kind of investors are ETF funds suitable for?

First, ETF funds are suitable for stable investors.

Steady investors first consider the security of the principal, and then consider the income. ETF fund consists of multiple stocks and related sectors, representing the ownership of a basket of stocks. Investors buying and selling an ETF is equivalent to buying and selling the index it tracks. Therefore, there will be basically no ups and downs, and the risk coefficient is relatively low, which is more suitable for stable investors.

Second, ETF funds are suitable for non-professional investors.

Most investors are not professional investors. They just spend their spare time watching or tracking the market and have no time to track it at any time. ETF fund tracking index has nothing to do with investors' personal ability. In fact, it depends on the changes in the whole market. The overall stock index went up, so did our funds, and went down, and went down. Therefore, ETF funds do not need to track at any time. After investors buy, they can set the interval to operate, and after meeting the requirements, they can sell at the corresponding price.

Third, ETF funds are more suitable for investors who recognize indexed investment.

This kind of investor thinks that the whole market is efficient. Ordinary investors may not get a greater probability of excess returns through the choice of individual stocks, but the prices of these stocks in the index have fully reflected the market information. If investors choose to track an index, it is equivalent to obtaining the growth trend of this industry or this theme.