Because buying ETF is equivalent to buying a basket of stocks, unless this basket of stocks has a daily limit, the probability of ETF's rise and fall is very small, that is, there is a possibility of a big rise, but the daily limit is a bit difficult.
The advantages of investors buying ETFs are:
1, ETF does not need transfer fees and stamp duty, but only charges trading commission, so the cost is very low.
2.ETF, also known as transactional open-end fund, has the same price trend as the underlying index and does not need to be comprehensively analyzed like stocks.
3. the trend of 3.ETF is relatively stable, unlike the ups and downs of stocks.
4. ETFs have t+ 1 products and T+0 products, and T+0ETF funds can buy and sell on the same day.
The disadvantages of ETF are:
It means that ETF will have a good increase when the stock price rises, but ETF funds may also face greater losses when the stock price falls.