What is the return of ETF funds Is it suitable for long term holding

ETF** is also an investment product, which will follow the general trend and fluctuate, and even fall below the ** price to cause losses.

Therefore, whether it is suitable for long-term holding depends on the individual's judgment on factors that have a greater impact on the investment market, economy, and international environment.

If you have confidence in the investment market and the macro economy, it means that the ETF will follow the general trend and should be held for a long time;

If you don't have enough confidence in the investment market and the macroeconomy, you can't hold an ETF** for a long time.

Any investment is risky, especially for long-term investments, because once the judgment is wrong, it will lose funds, accumulate funds, waste time, and time costs, etc., and the losses will be large. It is necessary to take adequate measures to deal with various errors in judgment.

For example, risk transfer is carried out by using regular investment, stop loss and other methods.

It can be said that all ** are suitable for long-term holding, because ** is relatively long-term and is generally upward, and ETFs are inherently exponential** more suitable for long-term holding.

The long-term income of ETF** is also good, such as E Fund 100 ETF was the annual champion last year, with a return of more than 100%.

ETF** is an index ** is more suitable for doing swings, you can also hold it for a long time, the key to long-term holding is not at the high point of a round**, at the beginning of a round**, so that you are more active, buy ETF** is best to use ** account to buy transactions are more convenient and the fee rate is lower.

ETFs are invested through trading like the general **, the fees are the lowest, and they are also very suitable as the best rate of return**! It is more suitable for long-term holding.

An ETF is an open-ended exchange that can be traded like an exchange.

Compared with ordinary open-ended**, ETF** is the same except for the different subscription and redemption methods, such as returns, risks, etc.

There are 27 ETFs**, including Cathay SSE 180 Financial ETF, ICBC SSE Central Enterprises 50 ETF, Huatai Berry Dividend ETF, CSI Well-off Industry ETF, ChinaAMC SSE 50 ETF, Bosera SSE Super ETF, GF SME 300 ETF and so on.

ETFs are indexes, which track the index by constructing a portfolio, essentially representing ownership of the portfolio, and they have these main differences from a single portfolio:

1. ETFs are portfolio investments, so the risks are more diversified than **.

Second, the investment cost of ETFs is lower, and when trading ETFs in the secondary market, there is no need to charge 1/1000 stamp duty.

3. ETFs can be redeemed, and the full name of ETFs is exchange-traded open-ended index**, which belongs to the type of open-ended**, since it can be subscribed and redeemed.

4. Some ETFs can be traded on T+0, such as bonds, **, currencies, and cross-border ETFs.

It can be seen that ETFs still have some advantages over **. In fact, ETFs are also divided into many types, you can choose a style ETF according to the market style, choose an industry ETF according to the industry rotation, or directly invest in a broad-based ETF to track the return of **.

Dividend ETF is worth long-term investment, due to the high cash dividend rate, stable dividends, and good overall returns, the tracking deviation and tracking error are usually minimized through fully replicated passive investment management, bringing investors a good long-term investment return and meeting the diversified investment needs of investors.

Extended Materials. 1. Advantages of dividend ETFs**.

1. The transaction is relatively flexible, you can ** a certain ETF ** on the same day, and then sell it on the same day, and you can trade multiple times and more frequently in a day.

2. The operation is transparent, most of them are indexes, the rules for stock selection are more open and transparent, and the ETF is subscribed according to the **, so the variety and proportion of the holdings will generally be announced, so for ordinary investors, the ETF is completely transparent, which can avoid risks such as shady trading.

3. The fee rate is relatively low, the management fee is still the transaction fee, and the ETF ** is that the management fee and transaction fee are much lower than the ordinary ****.

2. Dividend ETF dividend rules.

1. **Earnings are distributed in cash.

2. Each ** share has the same distribution right.

3. The manager regularly evaluates the excess rate of return relative to the underlying index on a quarterly basis, and can only distribute income when the cumulative rate of return approved on the date of return exceeds the cumulative rate of return of the underlying index for the same period by more than 1%.

4. The principle of determining the proportion of income distribution, according to the actual situation of the quarterly dividends of the constituent stocks of the dividend index of the Shanghai Stock Exchange, strive to achieve an even distribution of dividends every quarter, so that after the distribution of net income, the first unit is as close as possible to one-thousandth of the underlying index. According to the nature and characteristics of **, the income distribution of ** does not need to make up for the floating loss, and after the income distribution, the net value of the recovered ** share may be lower than the par value.

5. The annual income distribution ratio shall not be less than 90% of the annual income available for distribution. No income distribution shall be made within 3 months from the effective date of the contract, and a maximum of 4 income distributions shall be made per year.

3. How to trade dividend ETFs.

The trading method is the same as that of the ordinary**, which is carried out on the **exchange, and the subscription and redemption method is different from the ordinary**, which can only be carried out on the **exchange, and the minimum subscription and redemption share is 500,000 shares.

As the rising star of the investment community, ETFs have the characteristics of low fees and high trading efficiency, which can provide investors with convenient and low-cost tools to invest in key indices in a specific market and industry. Understanding ETFs in all aspects can help you achieve efficient asset allocation.

Help you solve: from the entry, advanced, advanced to a comprehensive understanding of ETFs, and develop an efficient allocation strategy; Rich and practical case analysis, teach you to learn to diversify risks and learn to create value from actual combat; From the risk appetite of different investors, we can help you develop a specific ETF investment plan.

Course Catalog: Newsletter: Enter the world of ETF investing.

The history of ETF investing.

Why ETFs are the new darlings of investing.

The allure of index investing.

Liquidity characteristics of ETFs.

Focus on industry ETFs - grasp the art of investing big and letting go of small.

Hello, the index** is suitable for long-term holding. If users want to hold the index for a long time**, they can hold the index type through regular investment. What's more, the volatility of the index is smaller than that of the index, which is not suitable for frequent trading.

Users who want to invest in index** are more suitable for long-term investment.

Historically, the probability of making a return and the expected return on a long-term holding of the index** is greater than that of a short-term investment. Moreover, the index is mainly invested in a basket, the market is short and bears are long, and the probability of long-term holding is greater. The purpose of holding an index for a long time** is to follow the returns of the index, which is relatively less risky.

An index is a specific index that tracks all or some of the constituent stocks of an index. Investing in the index base file can make good use of the metabolic mechanism of the index survival of the fittest and absorb excellent companies. Sticking to the regular investment index** is a good investment strategy in the future, and appropriate profit-taking is required.