The difference between them is:

ETF funds trade at real-time prices, while LOF funds trade at net value.

ETF is a passive fund, while LOF fund may be a passive fund or an active fund;

ETF investors trade shares and a basket of stocks, while LOF investors trade in cash.

ETF funds purchased off-site are ETF linked funds, and the linked funds track an ETF index on the market. LOF funds can arbitrage according to the price difference between on-site and off-site.

Extended information:

Transactional open-end index fund, also commonly known as Exchange Traded Fund (ETF), is an open-end fund with variable fund shares listed on the exchange.

Transactional open index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can purchase or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares in the secondary market at the market price like closed-end funds. However, the purchase and redemption must exchange a basket of stocks for fund shares or a basket of stocks for fund shares. Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the ETF market price and the net value of the fund unit. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.

according to different investment methods, ETFs can be divided into index funds and actively managed funds, and most ETFs abroad are index funds. ETF launched in China is also an index fund. ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and net fund share trend are basically consistent with the tracked index. Therefore, investors buy and sell an ETF, which is equivalent to buying and selling the index it tracks, and can obtain basically the same income as the index. Usually, a completely passive management method is adopted, aiming at fitting an index, which has the characteristics of both stocks and index funds.

advantages: diversification of investment and reduction of investment risks; Combining the advantages of closed-end and open-end funds; Low transaction cost; Investors can arbitrage on the same day; High transparency; Adding market hedging tools

has the characteristics of both stocks and index funds:

For ordinary investors, ETFs can also be traded in the secondary market of the exchange after being split into smaller trading units, just like ordinary stocks.

If you earn an index, you will make money. Investors will no longer have to study stocks and worry about stepping on mine stocks. Before 21, there was no short-selling mechanism in China's securities market, so there was a situation that "the index would lose money if it fell". In April 21, stock index futures were opened, and since December 5, 211, seven ETF funds have been included in the scope of financing and financing.