Jinjiwo: How to ChooseETFFund?

since2018Since the beginning of the year, the size of index funds has increased significantly, especiallyETFThe development momentum of fund products is extremely rapid. According to data from the Fund Industry Association, since2018Year to2019At the end of the first quarter of the year, the size of stock and hybrid funds decreased, but stock fundsETFThe circulation share has surged, with multipleETFShare occurrence10More than double the growth. Today, Jinjiwo will teach you how to chooseETFFund.

Speaking ofETFFund, as all investors know, its full name isExchange TradedFunds, also known as trading open-end index securities investment fund, abbreviated as trading open-end index fund. This is an open-end fund that is listed and traded on the exchange, with variable fund shares. It combines the advantages of closed-end funds and open-end funds. Investors can buy and sell fund shares in the secondary market, as well as subscribe and redeem from fund management companiesETFShare.


Jinjiwo pointed out that compared to buying stocks,ETFFunds have many advantages, such as time-saving and labor-saving, avoiding bearish market trends, diversifying investments without black swan events, low costs, stable investment styles, and high transparency. They have always been popular among investors.


Jinjiwo has summarized the following choicesETFThe method of the fund:


1First, choose the targetETFCurrently, in the fund marketETFThere is mainly a single marketETFCross marketETFCross borderETFCurrencyETFBondsETFandgoldETFAmong them, cross-borderETFBondsETFGoldETFCurrencyETFIt can be achievedT+0Buying and selling within the countryAthighETFyesT+1business.


After understanding the above-mentioned targetsETFAfterwards, investors should choose corresponding investment preferences based on their risk tolerance and expected returnsETFFor example, according to the size of the risk, the indexETF>bondETF>currencyETFTherefore, investors with high risk tolerance can choose indicesETFThose with weaker risk tolerance should choose currencyETF。


2Choose products with relatively high trading volumeETF。ETFThe larger the trading volume, the more active the trading in the secondary market, with good liquidity and lower risk. This makes it easy for investors to buy and sell, facilitating arbitrage trading in the future.


3Choose the one with smaller tracking errorETF。ETFThe tracking error of a fund refers toETFThe difference between the net asset return rate and its corresponding index return rate, the smaller the difference, the betterETFThe better the tracking effect, the more you can achieve returns similar to the index.


4Choose one with a lower discount premiumETFThe discount premium is the difference between the fund's market price and net asset value. The smaller the discount premium, the more investors can buy at a price close to the fund's net asset valueETFShare. whenETFNet worth greater thanETFWhen it comes to pricing, please specifyETFThere is a discount, so buying at this time is cost-effective;WhenETFNet worth less thanETFWhen it comes to pricing, please specifyETFThere is a premium, and selling at this time is cost-effective. Jinjiwo pointed out that whenETFNet worth andETFWhen the price difference is greater than the arbitrage cost, there is an arbitrage opportunity.