- Exchange Traded Funds
Exchange Traded Funds
Investors could trade ETFs in exchange, similar to trade stocks. Their target is to track the performance of specific indices.
Investment risks may be avoided by investing in a basket of securities or commodities, such main composite shares of specific industry which is to reduce worries in selecting stocks.
Information is public and transparent. Investors can easily obtain related information.
Changes of Investment Portfolio：
Compared to mutual funds, changes of constituents are rare.
There are many kinds of stock index ETFs, they cover different markets and industries.
Low Trading Fee：
Compared to mutual funds, ETFs have no subscription fees and redemption fees, and low management fee, help reduce trading cost; compared to stocks, there is no stamp duty on ETF trading.
Price of an ETF may be affected by local economy and political factors.
ETF could be traded by USD or RMB. Exchange rate, the potential currency risk may be varied and affects the investment return.
Pricing of ETF