Research On ETF Of China's Development

Since the 1990s, the investment philosophy of the international stock market has come into being the new changes: the trends investment and the professional fund management represent a low-cost, professional investment philosophy. Exchange Traded Fund (ETF) is a collection of professional fund management and investment trends in the new concept of financial products, the clever one, secondary market purchase, redemption mechanism, making a secondary market exchange price index is fitting, success share index increased revenue, is a low-cost, the simple transaction, stable income index funds.The purpose of Exchange Traded Fund (referred to ETF) is copying and tracking a market index, through the full decentralization of the investment strategy to reduce the risk of non-system, through the passive investment management approach to maximize reduce transaction costs, thereby gaining the average income level of a financial product innovation. In the last 20 years, Exchange Traded Fund is the most popular variety of investment of the capital market; it is favorite by investors of the national. In 2004, the Exchange Traded Fund was introduced into China and has been great success.This paper studies the development of Exchange Traded Fund (ETF) in our country:First of all, from the start with the definition of ETF, introduce basic features and classification of ETF; compare ETF with other investment products; approach to building, operating mechanisms, production and development of ETF.Secondly, discuss the necessity and feasibility of the development of ETF in China's capital market, recall China's ETF development process since 2001, and introduce the ETF experiences and lessons of the world's major countries.Third, more than 180 ETF of Shanghai Stock Exchange as an center, take the ETF positive analysis in the development of China, mainly involving the relation of Shanghai 180 Index and ETF, on the investment earnings and risk analysis of evidence, positive analysis of arbitrage, positive analysis of the role of management and other aspects in combination.Finally, analyze ETF on China's capital market development impact and significance, on which giving policy recommendations of promoting the further development ETF.