Trading skills of etf index funds

1. arbitrage: when the etf fund price in the market is greater than the net value, investors can buy a basket of stocks from the secondary market, then convert them into etf fund shares in the primary market according to the net value, and then sell ETFs at high prices in the secondary market to complete arbitrage; When the etf fund price in the market is less than the net value, investors can buy ETF fund shares at a low price in the secondary market, then redeem the shares in the primary market according to the net value, and then sell the shares in the secondary market to complete arbitrage.

2. Sell high and suck low: the fund mainly earns the bid-ask price difference, and can only make money by buying at a low price and selling at a high price, but it requires investors to have a certain investment level, and it is difficult to grasp the timing of buying and selling, requiring investors to have a high investment level.

3. Long-term holding: Historically, the probability of holding funds for a long time is high. In the process of fund investment, don't worry about short-term adjustment, and hold investors with insufficient trading experience for a long time.

Matters needing attention in purchasing ETF funds:

1, depending on the premium rate, that is, the market price/net value. If there is leverage, such as GEM B\ SME B, the premium rate can be around 15%. Without leverage, the premium rate generally does not exceed 5%. If it is too large, it means that the tracking error of the fund company is too large or other reasons. In short, it is not normal. Trading is risky, so trade carefully.

2. It depends on the on-site and off-site shares. There are on-site and off-site shares that can be converted to each other. Because there are arbitrage opportunities, the deviation between price and net value is generally not too big.

3.etf funds are traded on the stock exchange, and investors need to open a stock account or an on-site fund account on the brokerage platform for subscription.

Legal basis:

Fund laws and regulations

Article 3 A passively operated index fund shall be copied completely or by sampling. Unique physical purchase and redemption mechanism.