From: “Economic Observer reported”
Compiler: Fund China

Since the beginning of this year, the overall index fund yield as high as 75%, exceeding the initiative and the other sectoral funds, Among them, Shenzhen Securities 100 best performance, E Fund Shenzhen Securities ETF 100 to 109% of the net growth rates are the highest in index-type funds, as the head All funds and in terms of yield, investors attracted widespread attention and advice.

First doubt of ETF : what is it the ETF?

The initials “ETF” seeing them is “Exchange Traded Funds.” Shanghai Securities launched 50 ETF, at a time of the ETF Chinese name of the “open-end transactions Index Fund.” The Chinese name accurately and completely reflect the ETF contents and characteristics : first, It is an index tracking a particular index investment funds, such as Shenzhen 100 ETF Fund,the Shenzhen Securities 100 as a constituent stock of the target tracking, buying Shenzhen 100 ETF. will be with the Shenzhen index 100 basically the same rate of return. Second, it is an open-end fund, in exchange traded investors can trade as single stocks and closed-end funds as a simple trading ETF. Shenzhen 100 ETF transaction costs are relatively low, duty-free, single transaction commission transaction amount does not exceed the 0.30%.

Second doubt of ETF : ETF price is how to determine?

ETF integrated closed-end funds and open-end fund merits, both in the secondary market trading, also through arbitrage mechanism to solve the existing closed-end funds in the discount issue.

Investors on the Shenzhen Securities Exchange show that the real-time transaction price Shenzhen 100 ETF trading, This unknown value by the sale of other open-end fund different. Shenzhen 100 ETF price of the deal is in their share of the net as the benchmark reference next slight fluctuations reference value calculated every 15 seconds and the system shows an exchange, investors in the rates shown on the screen View. Shenzhen 100 ETF trading to show the real-time transaction prices, which are not exactly the same as in the Fund’s reference value. But not like closed-end funds as compared with net a substantial discount.

Third doubt of ETF : Where to buy ETF?

Small and medium-sized investors to participate in the ETF transactions through all major securities companies trading business department. First through securities companies to offer the Shenzhen Stock Exchange A-share accounts or securities investment fund accounts, Then Corporation business transactions can be commissioned by the Ministry of trading, transaction time and transaction method with the same transaction.

ETF tracking changes in foreign trip From 1993 from the American Stock Exchange, a subsidiary of PDR Services LLC transactions initiated and started to currently, there are nearly 15 history, during the ETF has also undergone continuous innovation, management initiatives such as the type of ETF, or cross-transactions (Crosstrade) and the cross-listing (Crosslist) system. However, no matter how “transform” its nature is still “open transaction Index Fund.”

Copyright Fund China 2009.

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