Core Viewpoint - The article discusses various arbitrage strategies available for Exchange-Traded Funds (ETFs), emphasizing the importance of selecting strategies based on individual investment research capabilities and risk tolerance. Group 1: Arbitrage Strategies - There are three popular arbitrage strategies for ETFs: discount arbitrage, intraday swing arbitrage, and event arbitrage [1] - Discount arbitrage involves exploiting the price difference between the primary market (creation/redemption) and the secondary market (trading price) of ETFs [2] - Premium arbitrage occurs when the secondary market price exceeds the net asset value, allowing investors to buy underlying stocks and create ETF shares for profit [4] Group 2: Discount and Premium Calculation - The discount rate is calculated as (real-time reference net value - market price) / real-time reference net value, and arbitrage is feasible when the discount rate exceeds transaction costs [3] - The premium rate is calculated as (market price - real-time reference net value) / real-time reference net value, and arbitrage is feasible when the premium rate exceeds transaction costs [4] Group 3: Operational Considerations - Executing discount and premium arbitrage requires a high level of programmatic trading capabilities to quickly capture price discrepancies and perform large-scale creation/redemption operations [5] - Investors should select ETFs with more pronounced premium/discount effects and smaller tracking errors for better arbitrage opportunities [5] - The process involves comparing secondary market prices with real-time reference net values, calculating expected arbitrage returns, and executing trades accordingly [6]