- What is an ETF? What types of ETFs are there?
The full name of ETF is an exchange-traded fund , which is simply understood as a fund that can be freely traded in the secondary market like investing in individual stocks . ETFs are also funds, so it is generally customary to divide them into index-based and actively-managed ones, but index-based ETFs are more popular due to their predictable long-term upward trend and the relatively scattered tracking of constituent stocks.
- What is the difference between buying ETFs on-exchange and OTC?
On-exchange refers to trading on the exchange, and OTC refers to investment transactions outside the exchange, such as third-party fund sales platforms, fund company platforms, and bank wealth management subsidiary platforms. ETFs can only be traded on the market. Some fund companies with relatively large ETFs will issue ETF connections and can also buy them; off-market, I recommend third-party platforms, such as Tiantian Fund and Egg Roll Fund. Slightly higher, fund companies and banks only have certain types of fees that are cheaper, but it is true for the impartiality of the third party.