Investment misunderstandings of ETF funds: 1. Only benefit from the bull market. Some investors believe that ETF funds investing in the stock market can only obtain expected returns in the bull market.

In fact, this is a big mistake.

With the continuous development of ETF funds, many professional fund managers take advantage of market volatility to conduct investment operations. As long as there is a change in the price difference, there are profit opportunities.

2. The risk is very high. Many investors believe that stock ETF funds operate with almost full positions and the net value fluctuates greatly. However, they do not know that ETF funds can effectively diversify risks.

For beginners with weak stock selection skills, ETF funds are an excellent tool to diversify the non-systematic risks of individual stocks.

3. It is only used for speculative arbitrage funds and has the function of distribution.

As an index fund, its transaction costs and tracking error are much lower than ordinary open-end index funds.

With the emergence of various innovative products, ETFs can be used for richer mid- and long-term asset allocation solutions.

In addition, real-time arbitrage in the primary and secondary markets is only one of the many application strategies of ETF funds.

Nowadays, with the continuous updating of information and investment value, more allocation strategies have emerged for ETF funds.

4. Exclusive for large customers. In fact, the threshold for ETFs is very low.

The risk of retail investors buying ETFs is lower than buying stocks, which is more suitable for retail investors.