ETF fund

Trading open-end index fund, also commonly known as Exchange Traded Funds (ETF), is an open-end fund with variable fund share, which is listed on the exchange.

Transactional open index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can purchase or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares in the secondary market at the market price like closed-end funds. However, the purchase and redemption must exchange a basket of stocks for fund shares or a basket of stocks for fund shares. Because of the existence of securities market trading and subscription and redemption mechanism at the same time, investors can carry out arbitrage trading when there is a price difference between ETF market price and fund unit net value. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.

Graded funds

Graded funds, also known as structured funds, refer to the types of funds with two-level (or multi-level) risk-return performance with certain differentiated fund shares through the decomposition of fund returns or net assets under a portfolio. The novelty and complexity of its product design and its various arbitrage methods are talked about by the industry.

on November 25th, 216, the CSRC announced that it had approved the Guidelines for the Management of Graded Fund Business issued by the Shanghai and Shenzhen Stock Exchanges (hereinafter referred to as the Guidelines), clarifying that only individual investors whose daily average securities assets are not less than RMB3, in 2 trading days can participate in the trading of graded funds in the Shanghai and Shenzhen Stock Exchanges. That is to say, its starting threshold is 3, yuan.