Advisory users : “I bought the shares before then again it into ETF. If I want to redeem what is the redemption? converted into stock or direct cash return? ”

Fund China: ETF is a so-called Exchange Traded in the portfolio, representing a “package” of stock ownership, can be sold and used for a “package” of stock redemption. Usually resort to a fully passive management practices to fit a particular index as the goal, both the stock and index fund characteristics.

ETF investors at the same time provide for the exchange transactions (that is, in peacetime, as did the sale of closed-end funds trading), and redemption of purchase (that is, an open-end fund as purchase Redemption) two transactions. But the purchase and redemption, ETF investors and the exchange of shares of the Fund and the “package” of stock.

On your problem, direct redeem ETF (sell) will be, directly after the liquidation can be cash.

More knowledge of the Fund, please see here.

Copyright Fund China 2009.

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