Every time we talk about the various categories of funds, there are always stock funds, currency funds, bond funds... But what are QDII, ETF, ETF connection, LOF funds? If you don’t understand, remember to collect and learn!
Let’s start a small discussion here:
1. OTC funds and on-market funds:
On-market and off-market funds are mainly defined in “market”, and “market” means “secondary market”, which is our stock exchange. .
Then on-exchange funds are funds that can be traded in the secondary market, that is, funds that are traded in the secondary market (securities account). OTC funds are funds that are traded outside the secondary market, that is, funds that are not traded in securities accounts.
2. open-end fund and closed-end fund
are open-end, that is, they can be purchased and redeemed, but they cannot be transferred casually, so they can only be traded over-the-counter. open-end funds mean that the total amount of the fund and the units are not fixed when the fund is issued. Investors can subscribe or redeem fund units at any time according to the agreement, and the size of the fund also changes with investors' purchases and sales.
Closed-end transactions cannot be redeemed after being bought, but can only be transferred, so they can only be traded on the exchange ; the total fund amount and issuance period of closed-end fund-type funds have been determined before issuance, and investors cannot Redemption, unless bought and sold in the secondary market based on market price.
ETF fund
ETF fund is also known as exchange-traded open-end index fund . Although the previous article talked about detailed ETF knowledge, let’s take a fresh look here. As an open-end fund, ETF funds should logically belong to over-the-counter funds. However, this important point is whether ETF funds are still on-exchange funds. , can be traded in the secondary market. If you have successfully opened a stock account, you can trade ETFs.
So it can be seen that ETFs are so awesome. They are not only open-end trading funds on the market, but also index funds. Index funds track a basket of funds. If you buy a fund, then the risk of such index tracking funds is smaller than that of individual stocks. It is worth going invest.
LOF fund
LOF is called an exchange-traded open-end fund . We understand ETF funds. Compared with ETF funds, LOF funds lack the word index. This means that the LOF fund does not need to follow the index, and can invest in more targets. It will not be restricted by the index, and can invest in a large number of targets. Compared with ETF funds, it is more flexible and has a lower capital threshold.
LOF is an open fund that can be purchased and redeemed off-site, and fund shares can be traded on-site. This kind of fund is equivalent to the localized innovation of China's securities investment funds.
ETF and ETF feeder funds
ETF and ETF feeder funds
ETF feeder funds refer to investing most of their fund assets in ETFs that track the same underlying index (referred to as target ETFs), closely tracking the performance of the underlying index, and pursuing the minimum tracking deviation and tracking error. , a fund that adopts an open-ended operation method. The
ETF fund is a completely passive tracking index, and the ETF linked fund is more similar to an enhanced index fund. The main differences between
are as follows:
1. Different trading methods, ETFs can be bought and sold at any time in the secondary market (stock account). ETF linked funds can only be like ordinary open-end funds, and you can buy them without a stock account.2. The investment rates and targets of the two are different, 3. The investment targets are different, ETFs are more like stocks, and ETF-linked funds are the same as the funds we see on many apps. QDII fund
QDII fund refers to a securities investment fund established within the territory of a country and approved by the relevant departments of that country to engage in securities business such as stocks and bonds in overseas securities markets. Like QFII, it is a transitional institutional arrangement that allows domestic investors to invest in overseas securities markets to a limited extent when the currency has not been fully convertible and the capital account has not yet been opened.
Simply put, it means taking domestic money to buy stocks or securities abroad.
Note:
ETF is listed and traded on the exchange. Like stocks and closed-end funds, ETF secondary market transactions also need to comply with the relevant trading rules of the exchange. For example, fund shares purchased on the same day may not be sold on the same day, and relevant regulations on block transactions may apply. Fund shares are bought and sold among investors, and investors can trade using their securities accounts or fund accounts on the stock exchange.
(1) Trading hours : The opening hours of the stock exchange, specifically 9:30-11:30 am and 1:00-3:00 pm from Monday to Friday (excluding holidays).
(2) Transaction method: Place an order through any securities company during the trading hours of the transaction purpose.
(3) Trading unit: 100 fund shares are equivalent to 1 lot, and relevant regulations on bulk transactions may apply. The transaction price of
(4) is determined by market supply and demand. Under normal circumstances, it does not deviate greatly from the reference net value of fund shares (IOPV). If there is a large deviation, it may mean the emergence of arbitrage opportunities. The minimum price change unit of
(5) is 0.001 yuan.
(6) price limit: 10%.
(7) Transaction fee: No stamp duty, commission not higher than 0.30%.
(8) clearing and settlement: transaction on T day, settlement on T+1 day.
