Trading open-end index funds, commonly known as exchange-traded funds (Exchange Traded Funds, referred to as “ETF”), is an open-end fund that is listed and traded on an exchange with variable fund shares.
Generally speaking, the threshold for direct subscription to fund management companies is relatively high, usually at a minimum of 500,000. It should be noted that ETFs are purchased and redeemed in kind, and investors use a basket of stocks, that is, all constituent stocks included in the index, to purchase; when redeeming, they also get a basket of stocks. Only when one of the constituent stocks is suspended from trading can a small amount of cash be used to replace the stock.
ETF fund: ETF fund tracks a certain index, such as SSE 50eft, which tracks the SSE 50 index and completely replicates the constituent stocks of SSE 50, so it is a completely passive investment method.