What are the suitable scenarios for ETF trading?

What are the suitable scenarios for ETF trading?

ETF protects users with a rebalance mechanism to ensure that the ETF net value does not return to zero when the spot fluctuates sharply, so as to control risks.

In the case of continuous decline of ETF net value, reduces the loss of users; with repeated market fluctuations (exceeding the active rebalancing threshold), users need to bear the net wear caused by the rebalancing mechanism. Therefore, ETF products are more suitable for the unilateral market and are unsuitable for long-term holding. For investors with long-term investments or with the intention to hold ETF, they should fully understand the mechanism of ETF products and bear the risks by themselves.

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