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Securities
Exchange Traded Funds
Securities Code
Securities Code
Securities Code
Product Characteristics
Simple:
Investors could trade ETFs in exchange, similar to trade stocks. Their target is to track the performance of specific indices.
Risk Diversification:
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.
High Transparency:
Information is public and transparent. Investors can easily obtain related information.
Changes of Investment Portfolio:
Compared to mutual funds, changes of constituents are rare.
Variety:
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.
Product Risks
Market Risk::
Price of an ETF may be affected by local economy and political factors.
Currency Risk:
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