It combines the operating characteristics of closed-end funds and open-end funds. Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at market prices in the secondary market like closed-end funds. However, the purchase and redemption must be exchanged for a basket of shares or a basket of shares. Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the market price of ETF and the net value of fund units. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.
The current price of the fund is the immediate price of the day.
The net asset value of the fund is the balance of the total market value of the fund assets after deducting liabilities at a certain time, which represents the rights and interests of the fund holders.
Tips: The above explanations are for reference only.
Reply time: 202 1-09-07. Please refer to the latest business changes announced by Ping An Bank in official website.
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