The full name of ETF fund is "listening open-end fund", also known as transactional open-end index fund, which refers to the open-end fund with variable fund share listed on the exchange. ETF funds take a specific index as the tracking object, so that there is little difference between the change trend of the portfolio and the change trend of the index, so as to make a profit, and the general income index is roughly the same.

ETF fund features:

1, low handling fee

When trading in the secondary market, only the transaction commission will be charged, which will not exceed three thousandths of the transaction amount. The minimum single transaction is 5 yuan.

2. Various trading places.

It can be purchased and redeemed in the primary market or traded in the secondary market. There are all kinds of trading places.

Step 3 arbitrage

It is precisely because there are many trading places that investors can use this feature to arbitrage between different trading places, earn the difference and get extra income.

4. Transparent operation

ETF funds take relevant indexes as investment targets, mostly index funds, and the stock selection rules are more open and transparent. The daily ups and downs of ETF funds and the proportion of positions are publicly displayed, which helps investors to grasp the investment opportunity and judge the follow-up investment direction.

The difference between ETF fund and LOF fund;

1, transaction method

ETF funds exchange fund shares and a basket of stocks with investors when purchasing or redeeming; LOF funds exchange cash with investors. ETF funds are traded at market price and in real time; LOF funds are traded at a net value, with only one trading price per day, and the income is calculated according to the net value displayed at the close.

2. Place of purchase and redemption

ETF funds can only be traded on stock exchanges; LOF funds can be traded on the stock exchange or online.

3. Fund type

ETF is an index open-end fund, which belongs to passive fund. LOF funds can be passive index funds or active management funds.

4. Quotation frequency

ETF funds in the secondary market trading, every 15 seconds can provide a fund net worth quotation; LOF fund only provides a quotation of fund net value once a day, that is, the fund net value at the close of the day.