Core Viewpoint - The article provides a comprehensive introduction to Exchange-Traded Funds (ETFs), highlighting their benefits and features, making them an attractive investment option for various investors. Group 1: Benefits of ETFs - Risk Diversification: ETFs allow for automatic asset allocation, helping to mitigate stock selection difficulties [7] - Low Costs: Management fees are low, and there are no stamp duties, resulting in lower trading costs [12] - High Transparency: Daily disclosures of holdings provide clarity on underlying assets [13] - Flexibility in Trading: ETFs can be bought and sold throughout the trading day, enhancing capital efficiency with some T+0 capabilities [9] - Rich Selection: A wide range of ETFs covers various markets and themes, providing diverse investment opportunities [11] - Accessibility: Investors can start with a few hundred yuan, making it easy for ordinary individuals to participate [14] - Simplicity of Operation: Investors only need to assess broader market trends rather than individual stocks [15] Group 2: Types of ETFs - Broad-based ETFs: These track comprehensive market indices, suitable for investors looking to diversify without stock selection [20] - Sector ETFs: These focus on specific industry indices, ideal for those optimistic about particular sectors but hesitant to invest in individual stocks [22] - Thematic ETFs: These follow specific trends or narratives, targeting disruptive technologies or social trends [24] - Enhanced Index Funds: These innovative funds aim to outperform the tracked index by incorporating additional strategies and stock selection capabilities [26]