ETF?Funds are common indirect investment products, with a combination of investment, diversification of risk, market funds are broadly divided into public **** funds and private funds.What are ETFs, closed-end and open-end funds?
ETF:English full name Exchangetraded, that is, traded open index funds. Traded: means index funds that can be listed and traded on an exchange: means index funds that track a target, which according to the strategy are passive funds. We are familiar with the SSE 50, SZSE 100 and SZSE 300 indices, etc., behind the corresponding ETF funds, the code usually starts with 510, 159. In addition, another feature of exchange-traded funds is not like other funds: the amount of purchase and redemption of shares. ETFs use share purchase, share repurchase, that is, when you buy an ETF, you must exchange all the shares specified in the ETF for shares, and when you repurchase, you get the corresponding shares, which you must sell if you want to change.
LOF:English full name Listed, Open-ended, that is, traded open funds. Again, it can be listed and traded, but unlike an ETF, it can be purchased and redeemed either over-the-counter (e.g., online) or over-the-counter (on an exchange).
FOF, or FundofFunds in English, refers to funds that invest primarily in other funds. Recently, the initial public FOF funds have been recognized, meaning that the development of the FOF fund industry has begun to move towards the highway. Currently, the market is dominated by public FOFs, with very few private FOFs. In addition, according to regulations, public FOF funds must invest more than 80% of their assets in other funds.
Closed-end and open-end funds: the two are separated according to the mode of operation, closed-end funds, i.e., the fund contract period is fixed, and open-end funds have no fixed period. Most of the funds we buy online can be purchased and repurchased at any time, so they are open-ended funds.
In addition, due to the openness of the purchase and repurchase at any time, the open fund fund size is usually not fixed, purchase and repurchase network with the market changes.