What is a crude oil ETF?

ETF fund is a traded open-ended index fund, usually also known as ExchangeTradedFunds (ETF), is a kind of open-ended fund listed and traded on the exchange with variable fund shares. Exchange-traded open-ended index funds are a special type of open-ended funds, which combines the operational characteristics of closed-ended funds and open-ended funds. Investors can subscribe for or redeem fund shares from the fund management company and, at the same time, buy and sell ETF shares on the secondary market at the market price just like closed-ended funds, but the subscription and redemption must be done by exchanging a basket of stocks for the fund shares or exchanging the fund shares for a basket of stocks. for a basket of shares. Due to the existence of both stock market trading and subscription and redemption mechanisms, investors can engage in arbitrage trading when there is a difference between the market price of the ETF and the net value of the fund units. The existence of the arbitrage mechanism allows ETFs to avoid the discount problem commonly found in closed-end funds.