Which is better, etf fund or etf linked fund?
Etf funds can be selected for on-site trading, and etf linked funds can be selected for off-site investment. Etf funds are more suitable for powerful institutions or professional investors, while etfF linked funds are more suitable for ordinary investors. At the same time, we should also pay attention to the following:
1 if investors want to grasp the short-term band income, etf funds are more suitable because of the low rate and small tracking error;
2etf funds can conduct intraday real-time trading, but it is necessary to pay attention to the trading volume in the secondary market, because many etfF transactions are not active;
If investors want to invest through fixed investment, etfF linked funds have more advantages.
What is the difference between the two:
1 The main investment targets are different.
Most of the funds of etf linked funds are invested in etf funds that track the same index. Generally, at least 90% of the funds are invested in the corresponding etf funds. With the operation mode of open-end funds, investors can purchase and redeem at any time. The subscription and redemption of etf funds must exchange a basket of stocks for fund shares or exchange fund shares for a basket of stocks.
Two Different Tracking Errors
Etf Linked Fund In order to cope with investors' redemption, it is impossible for open-end funds to operate in Man Cang, and the general maximum position is 95%. The maximum position of etf funds can reach 100%. Therefore, under normal circumstances, the tracking error of etf linked funds will be slightly larger than that of etf funds.
3 different trading platforms
It is very simple for investors to buy etf funds, as long as they have a stock account, while etf-linked funds are over-the-counter transactions and do not need to open a shareholder account.
4 Different transaction costs
Buying ETFs through stock accounts only involves commissions. To purchase etf-linked funds through the fund sales platform, you need to pay the subscription fee, which is generally between 1%- 1.5%. The redemption fee is related to the holding time. The longer the holding time, the lower the redemption fee. If the holding time is less than 7 days, the general redemption fee is 1.5%.