Core Viewpoint - Cross-border ETF funds, also known as "QDII ETF" funds, are investment funds established domestically that invest in overseas markets, creating arbitrage opportunities due to potential pricing discrepancies between market trading prices and net asset values [1] Group 1: Trading Mechanism of Cross-border ETF Funds - Cross-border ETF funds can be traded on the Shanghai and Shenzhen stock exchanges, allowing for both on-market trading and subscription/redemption operations [1] - The trading mechanism includes T+0 trading, enabling same-day buy and sell transactions without limits on trading frequency [2] - ETF fund shares redeemed require T+2 settlement for the funds to be available [2] Group 2: Necessary Conditions for Arbitrage - Selecting brokers that support RTGS settlement mechanisms is essential, as only a few brokers provide this support [3] - Ensuring low transaction costs is crucial to minimize friction costs, including subscription, redemption fees, and trading commissions [3] - A deep understanding of the trading mechanisms of cross-border ETF funds is necessary, and consulting with securities advisors is recommended [3] Group 3: Instant Arbitrage Strategies and Steps - Instant arbitrage can be categorized into premium arbitrage and discount arbitrage [4] - For premium arbitrage (when market price > IOPV): 1. Subscribe to cross-border ETF by following the daily published subscription list and obtaining ETF shares [5] 2. Sell the ETF shares in the secondary market at the expected market price [5] - For discount arbitrage (when market price < IOPV): 1. Buy ETF shares in the secondary market at the expected market price [5] 2. Redeem the ETF shares to receive a basket of stocks or cash, avoiding the need to sell stocks if cash is redeemed [5]