Extended data:
ETF is an exchange traded fund. ETF is an open-end fund with variable fund share, which is listed and traded on the exchange.
Characteristics of ETF funds
Transactional open index funds are essentially index funds, but different from traditional index funds, transactional open index funds can be listed on exchanges, allowing investors to buy and sell a fund representing the "underlying index" like buying and selling stocks.
Transactional open-end index fund is a special open-end fund, which not only absorbs the advantages that closed-end funds can trade in real time on the same day, but also allows investors to buy and sell the shares of transactional open-end index funds in the secondary market like closed-end funds or stocks. It also has the advantage that open-end funds can purchase and redeem freely. Investors can buy or redeem the shares of transactional open-end index funds from fund management companies just like buying and selling open-end funds.
The subscription and redemption of transactional open index funds must be exchanged for a basket of stocks (or a small amount of cash) or a basket of stocks (or a small amount of cash). Due to the existence of this special physical purchase and redemption mechanism, investors can carry out arbitrage trading when there is a difference between the transaction price in the secondary market of transactional open index funds and the net value of fund shares. In addition, the market price of trading open-end index funds is basically the same as its unit net value, and there will be no common discount problem of closed-end funds.
Trading rules of etf funds: T+ 1 trading is implemented, which can only be sold on the second trading day of the day. The transaction is conducted according to the real-time market price and follows the principle of price priority and time priority. The transaction quantity is 100 and its integral multiple, and the price is limited to 10%. The trading time is Monday to Friday at 9: 30- 160.