Many people imagine ETFs to be very complex, but in reality, ETF operations in the secondary market (stock market) are very simple. Of course, this is largely because this product started relatively late in our country (the first ETF was born in 2004), and many people are unfamiliar with it. In fact, for stock investors, it may be better to simply consider it as a "big stock", because in the trading methods of the secondary market, ETFs are almost the same as stocks.

In this era of high inflation and currency depreciation, many families consider allocating certain stock assets when managing their income, and the over 2000 stocks in the Shanghai and Shenzhen stock markets leave people at a loss, which involves stock selection and timely adjustment of positions. For ordinary investors, they don't have as much time to conduct stock research, nor do they have as much energy to conduct on-site research on listed companies, and those so-called rumors have probably made many investors feel heartbroken. Instead, it's better to buy ETFs, as all you need to do is assess the overall trend and increase or decrease your holdings in a timely manner.

Because ETFs are a collection of stocks composed of the constituent stocks of the underlying index they track, increasing or decreasing ETFs is equivalent to increasing or decreasing stock positions. When the market changes, directly adding or removing ETFs can avoid the trouble of delivering multiple stocks. For large investors, adding or removing ETFs can also reduce the impact on stock prices and quickly enter and exit the market. The special arbitrage mechanism of ETFs can improve liquidity and reduce the impact cost of large trades.

After using ETFs, stock investment becomes very simple. When investors judge that the market is about to rise, they buy ETFs in the secondary market and quickly increase their stock positions; When it is determined that the market is about to decline, sell ETFs in the secondary market and quickly reduce stock holdings.