How to subscribe for ETF in cash?

There are two main ways to subscribe for ETF cash:

1. You can purchase from the fund manager according to the net value of the fund on that day, but the minimum subscription share of ETF is usually relatively large, so it is difficult for ordinary investors to purchase in this way.

You can also trade directly with other investors in the stock exchange. The trading process is similar to that of stocks. The transaction price is determined by both the buyer and the seller, which often has a certain gap with the net value of the fund at that time.

It is understood that ETF is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund.

Extended data

Three advantages of ETF cash subscription

1. From the management fee point of view, the product rate of ETF is generally 0.5%, while that of ordinary open-end funds is generally 1.5%, and the management rate of ETF is even lower.

2. From the perspective of transaction convenience, ETF is more convenient. Investors can buy ETFs directly with a stock account in any securities firm, while ordinary open-end fund investors can only buy ETFs through specific banks or securities firms and need to open different fund accounts.

3. From the perspective of investment threshold, ETF is relatively low, starting at 100, while ordinary open-end funds are relatively high, with the minimum subscription threshold.

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