What is the-ETF in the Qianhai fund?

What is the-ETF in the Qianhai fund?

Abbreviations are really a wonderful thing. "Trading Open index Securities Investment Fund" (Exchange traded Fund) such a long name can be simplified to three letters of the ETF. And people who know a little bit about it can make more or less associations and extensions to the features behind it as soon as they see the three letters.

As an index fund, ETFs are very disciplined and combine to form a good baby with a high degree of certainty. Its most basic function is to buy its underlying index of the stock contained in it. For example, the code is 510230 Cathay Financial ETF Tracking 180 Financial Index, which has ICBC, CMB, Minsheng Bank (600016), China Life (601628) and so on 27 financial stocks, then Cathay Financial ETF copied to buy so many stocks.

Just as everyone thinks that her sister is a woman, ETFs are also index funds in index funds. The average index fund position that the bank counter can buy (that is, the portion of the fund that buys all the money for the stock) is up to 95%, because 5% of the cash position is reserved for normal redemption. But ETF positions can be as high as 100%, because the fund does not need to sell the stock when it is redeemed, just give it back to you. When you redeem an ETF, it can take a few days faster to get money to the bank than to redeem a regular index fund.

ETFs are much more efficient to use than ordinary open-end funds purchased at banks. After the bank redeems the general Index fund, the funds can not be credited within 7 business days. After you sell or redeem an ETF, the next business day funds can be credited.

As an index fund in Index fund, ETF integrates the advantages of open, closed and stock. Just like her sister is sweet and lovely, EQ is still very high. ETFs can be traded on the same day as closed-end funds and stocks, as well as open-ended funds, and can be redeemed freely, with the risk being lower than just buying a stock because of the diversification of the stock.

In-house Qianhai Fund website: http://www.qhcredfund.com

Article selected from: China Fund Network

What is the-ETF in the Qianhai fund?