First, you can buy and sell from the fund manager according to the net value of the fund on that day (the same as ordinary open-end funds);

Second, it can also be bought and sold directly from other investors in the securities market, and the buying price is determined by the buyers and sellers through consultation. This price often has a certain gap with the net value of the fund at that time (like ordinary closed-end funds).

According to the different investment methods, ETFs can be divided into index funds and active management funds, and most of the ETFs abroad are index funds. At present, ETFs launched in China are also index funds. ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and fund share net value trend are basically consistent with the tracked index.

Therefore, investors buying and selling an ETF is equivalent to buying and selling the index it tracks, and can get basically the same income as the index. Usually, it adopts a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.

Extended data:

market influence

1, which increases the market appeal of the exchange.

The launch of ETF enriches the trading varieties, improves the variety layout of the market, helps to attract more strong stocks of large-cap blue-chip companies to join the market, helps to guide the diversion of savings funds to the securities market, and helps to further deepen product innovation in the market.

2. Increase the investment opportunities of investors.

As an indexed product, ETF trading also provides investors with opportunities to invest in specific sectors, specific indexes, specific industries and even specific regions. Those indexes targeting specific sectors will not only continue to play a role in revealing prices, but also be used as investment tools for investors.

Moreover, this kind of ETF without cash management can greatly improve the efficiency of fund assets, avoid the transaction cost and tax burden increased by constantly adjusting the portfolio in response to regular redemption, and help protect the long-term interests of fund investors.

3. The influence of 3.ETF trading on the trading volume of the stock market is uncertain, which may increase market volatility.

The daily trading volume of ETF with redemption right is large, which may lead to an increase in the trading volume of the underlying stocks that constitute the index. However, if some investors use these stocks as part of a diversified portfolio to track the overall market trend, ETF trading may reduce the trading volume of the underlying stocks.

References:

Baidu encyclopedia -ETF