ETF, also known as exchange-traded fund, is a collective investment tool managed by fund companies, which can be listed and traded on the exchange to track the performance of a market index or a group of stocks. ETF has the characteristics of stock, which can be listed and traded on the exchange, with convenient trading, observable price and convenient trading, but ETF has more advantages than stock, such as low cost, diversity and flexibility.

Second, the advantages of ETF

1. low cost: the management cost of ETF is lower than that of fund, usually between 0. 1%-0.5%, far lower than that of traditional fund.

2. Diversity: ETF can invest in a variety of assets, including stocks, bonds, futures and foreign exchange. , you can also invest in the global market.

3. Flexibility: ETF can be listed and traded on the exchange, which is convenient to buy and sell and the price can be observed. Investors can buy and sell at any time according to their own needs.

Third, the types of ETFs

There are many kinds of ETFs, which can be divided into stock ETFs, bond ETFs, commodity ETFs and foreign exchange ETFs according to different investment objects.

1. Stock Exchange Trading Fund: Track a group of stocks or a market index, such as the Standard & Poor's 500 Exchange Trading Fund, and track the Standard & Poor's 500 Index.

2. Bond ETF: Track a group of bonds, such as US Treasury ETF, and track US Treasury bonds.

3. Commodity ETF: Track a group of commodities, such as gold ETF, and track the price of gold.

4. foreign exchange ETF: track a group of foreign exchange, such as euro ETF, and track the euro exchange rate.

Fourth, the risk of ETF.

The investment risk of ETF is related to its investment target. Generally speaking, the higher the risk, the higher the income. Therefore, ETF investors should choose the right ETF according to their risk tolerance. In addition, because the price of ETF is affected by market fluctuation, investors should also pay attention to market changes in order to adjust their investment portfolio in time.

Verb (abbreviation of verb) ETF investment strategy

ETF investment strategies mainly include the following:

1. Long-term investment: Long-term investors can choose ETFs that track market indexes with good long-term performance, such as the Standard & Poor's 500 ETF, which can obtain long-term stable returns.

2. Short-term investment: Short-term investors can choose ETFs that track market indexes with good short-term performance, such as China A-share index ETFs, and get higher short-term returns.

3. Diversified investment: Diversified investors can choose to track ETFs with different market indexes to diversify investment risks and reduce investment risks.

Abstract of intransitive verbs

ETF is a collective investment tool managed by fund companies, which has the advantages of low cost, diversity and flexibility. It can invest in a variety of assets, including stocks, bonds, futures and foreign exchange. , you can also invest in the global market. The investment risk of ETF is related to its investment target. Investors should choose the right ETF according to their own risk tolerance, and pay attention to the changes in the market in order to adjust their investment portfolio in time.