The underlying indexes tracked by medical ETFs and pharmaceutical ETFs are different. The underlying index tracked by medical ETFs is the CSI Healthcare Index (399989), while the underlying index tracked by pharmaceutical ETFs is the CSI Pharmaceutical and Healthcare Index (000933).
There are some differences between the medical index and the pharmaceutical health index. The medical index selects stocks of listed companies in Shanghai and Shenzhen A-shares whose business involves medical devices, medical services, medical information technology and other medical topics as the sample stocks of the index, while the CSI Pharmaceutical and Healthcare Index consists of stocks in the pharmaceutical and healthcare industry in the sample stocks of the CSI 800 Index.
There is a difference in the sources of stocks for the two indexes, with the constituents of the medical index coming from a wider range of sources, including the entire Shanghai and Shenzhen A-share markets, while the constituents of the healthcare index come from the CSI 800 only.
The constituents of the medical ETF index are mainly listed companies making medical devices, which are knitted together into the ETF through the weighted-average algorithm.
The on-exchange medical ETFs are now available on the market, but the medical ETFs are not yet available on the market. On-market medical ETFs issued at this stage include the Huabao CSI Medical ETF (code: 512170) and the Guotai CSI Medical ETF (code: 159828). The underlying index tracked by the two is: CSI Medical Index.
The constituent stocks of pharmaceutical ETFs are mainly listed companies whose main business is producing medicines. 512010) tracking underlying: CSI 300 Pharmaceuticals and Healthcare Index; Guotai CSI Biomedical ETF (512290) tracking underlying: CSI Biomedical Index.
Investors can buy ETFs in two ways:
(1) They can subscribe to the fund managers according to the net value of the fund on the same day (the same as ordinary open-ended *** same funds), but the minimum subscription share of the ETFs is usually larger, so it is difficult for ordinary investors to subscribe in this way.
(2) ETFs can also be traded directly with other investors on the stock exchange. The trading process is similar to that of stocks, and the price of the transaction is determined by the buyer and seller **** the same, which is often different from the fund's net value at the time (the same as for ordinary closed-end funds).