What is the difference between these two 50 index funds?

Forget it if the poster is wrong, the people on the first floor are still so-called experts, but they don’t understand it themselves. What a joke.

510050, SSE 50 ETF, China Asset Management Company (ETF Fund)

110003, E Fund 50, E Fund Company

The latter is not a LOF, it is just ordinary common open-end funds.

Differences:

(1) Management fees, ETFs are lower than general index funds.

The former: fund management fee 0.50 and fund custody fee 0.10

The latter: fund management fee 1.20 and fund custody fee 0.20

You can start here Let’s compare.

(2) There is basically no distortion in 50ETF. Because it is completely copied and the subscription and redemption are stocks, it has no impact on the operation of the fund.

The latter requires cash when redeemed, and sometimes dividends are paid, resulting in larger tracking errors.

(3) Position

50ETF, under normal circumstances the proportion of stock investment in the net assets of the fund is not less than 95

E Fund 50, under normal circumstances stock investment The proportion of the fund's net assets is not less than 90%.

This difference also causes the above distortion. Because in order to deal with redemptions, E Fund 50 must retain 5 in cash.

(4) Investment strategy

50ETF completely replicates the index.

E Fund 50, enhanced index fund. In terms of asset allocation, we pursue adequate investment and do not actively adjust stock positions based on judgments of market timing. We control the risk of deviation from the target index through the use of in-depth fundamental research and advanced quantitative investment technology, and pursue an income level that exceeds the performance comparison benchmark. .

There are others, but the main ones are the above four points.