Do etf funds and etf linked funds have the same transaction costs?
Different, the transaction cost of etf-linked funds is much higher than that of ETFs, which is not suitable for short-term operation, as follows:
1etf fund
Investors buy ETFs through stock accounts, and the transaction costs involved are only commissions.
2etf linked funds
Investors who purchase etf-linked funds through the fund sales platform need to pay the subscription fee, which is generally between 1%- 1.5%. The redemption fee is related to the time when investors hold the fund products. The longer the holding time, the lower the redemption fee. If it is held for less than 7 days, the redemption fee is 1.5%.
In addition, at present, most fund companies divide etf linked funds into two parts, A share and C share. The only difference between the two stocks is the transaction cost. A share has subscription and redemption fees, which is suitable for long-term investment. There is no subscription fee for share C, but there is a sales service fee, which is about 0.2%-0.4% per year, which is suitable for short-term investment.
Other knowledge points:
1etf fund: also known as exchange-traded fund, it is a special open-end fund, which can be traded on the exchange with variable fund share. It combines the operating characteristics of closed-end funds and open-end funds, and is a "passively managed" index fund, which tracks and replicates the index.
Investors can buy or redeem fund shares from fund management companies, or buy and sell ETF shares at market prices in the secondary market like closed-end funds. However, the purchase and redemption must use a basket of stocks for fund shares or use fund shares for a basket of stocks.
2etf linked fund: refers to the fund that invests most of the fund assets in etf funds that track the same underlying index and adopt open operation. Simply understood, etf linked funds are tracking an etf. Only with etfF will there be etf links, both of which closely track the index.