LTG in this article
GoldRock will share with you the other advantages of ETF ~
Low transaction cost
Index investment often has the characteristics of low management fees and low transaction costs.Compared with other funds, the index investment does not take the purpose of winning the index. The manager will only adjust the investment portfolio according to the changes in the index component., Index investment tendency to hold securities that have been purchased for a long time, and they must pay higher transaction costs due to active management due to active buying and selling high turnover rates. Index investment does not actively adjust the investment portfolio.Essence
Investors can arbitrage on the same day
For example, the Shanghai Stock Exchange 50 fluctuated sharply within one trading day, and the increase of more than 5%on the day of the day, but the market closed down or even fell.For investors in ordinary open index funds, it is not meaningful to increase in the market that day. The redemption price can only be calculated based on the closing price. The characteristics of ETF can help investors seize the chance of rising in the market.Since the exchange shows IOPV (net value valuation) once every 15 seconds, this IOPV instantly reflects the changes in net value of the fund's net value, and the ETF secondary market price changes with the change of IOPV. Therefore, investors can market in the market.When the index rises, ETFs are thrown in time in the secondary market to obtain the income brought about by the rise of the index on the day.
High transparency
ETF adopts passive management. The composition stocks that fully copy the index as the fund investment portfolio and investment return rate. The fund holding of the fund is quite transparent. Investors are more prone to the characteristics of the investment portfolio and fully grasp the situation of the investment portfolio, and make appropriate expectations.In addition, the index value and estimated fund's net value for investors will be updated every 15 seconds to allow investors to grasp their price changes at any time, and to buy and sell at any time at the price close to the fund.Both closed funds and open funds cannot provide the convenience and transparency of ETF transactions.
Increase market risk aversion tools
Because ETF products can be regarded as a spot in the concept of an index, and the product characteristics that can be operated by the ETF itself are long and short, if institutional investors have stocks in their hands, but they can use the performance of the bad stock market, they can use the securities fusion method to sell it.ETF does reverse operation to reduce the amount of spot loss on the hand.For the overall market, the birth of ETF has made financial investment channels more diverse, and also increases the short channel of the market.For example, in the past, institutional investors could only avoid risk shelter by reducing positions when operating funds. Although the futures were increased as a short passage, investors must also face monthly positions and transaction costs when using futures for long -term risk aversion tools.The use difference, using ETF as a risk -free tool, can not only reduce the risk of stock positions, but also does not need to sell stocks in the spot market, which provides investors with more diverse choices.
