What is an ETF?
The full name of the ETF in English is Exchange Traded Funds, which is called an exchange-traded fund in China. An ETF is an open-end fund that tracks market indices and can be traded on stock exchanges. The ETF can be understood as a special form of public fund: the issuer buys different stocks or bonds or other assets and brings them together to form a fund. Then they are divided into small pieces to get to the stock market, and they become ETF index funds that can be traded freely.
The difference between ETF and stock:
ETFs combine the advantages of public funds and stocks. ETFs, like funds, bring together a lot of investors' funds, and at the same time, they can trade in real time through brokers like stocks. When investors invest in ETFs, there is no difference between buying stocks, but behind this, ETFs and stocks are fundamentally different.
Advantages of ETF:
First of all, there are many investment varieties. Second, the performance is relatively stable. Finally, leveraged ETFs can be multiplied long or short.