Funds can be divided into open-end funds and closed-end funds according to the mode of operation.

1. The "closure" of closed-end funds means that compared with general open-end funds, it is closed and can only be purchased and redeemed on specific open days. ETF itself is an open-end fund, which can be freely purchased and redeemed as long as it is a trading day.

2. Closed-end funds have a fixed duration, usually 10 years or 15 years; As an open-end fund, ETF can operate indefinitely.

3. Closed-end funds can be actively managed or passively managed, while ETFs can only track the index of specific markets, which is a passively managed fund. * * * Similarities: Both need to be traded on the stock exchange.

ETF is a kind of fund, which is divided into open-end fund and closed-end fund. Closed-end funds are regularly open for subscription and redemption, while open-end funds can be purchased or redeemed at any time. Transactional open-end index fund, usually called exchange-traded fund, is an open-end fund with variable fund share, which is listed and traded on the exchange.

ETF fund is an open-end fund, which can be purchased or redeemed from fund companies at any time. They are also trading funds and can be bought and sold through stock accounts. Closed-end fund: It is forbidden to accept new shares and sell shares for a period of time before the new round of opening. When opening up, you can decide how much to invest or reinvest, and newcomers can also buy shares at this time. Generally, the opening time is 1 week and the closing time is 1 year.

ETF Fund: It combines the operating characteristics of closed-end funds and open-end funds. Investors can buy 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 market prices like closed-end funds. However, the purchase and redemption must be exchanged for a basket of shares or a basket of shares. Like traditional open-end funds, ETFs are generally managed by fund management companies in the form of public offerings, and need to be valued according to the net asset value held by funds on each trading day.

On the other hand, compared with general open-end funds, ETFs are different in terms of transaction mode, purchase and redemption mechanism, investment management mode and investment target, transaction cost, transparency, capital use efficiency and so on.

What's the difference between ETF and closed-end fund?

A: The main differences between the two are as follows:

First, in the trading mechanism, ETF adopts the trading system of combining primary market subscription and redemption with secondary market trading, while closed-end funds can only trade at the market price in the secondary market;

Second, in terms of fund scale changes, the scale of ETF will increase or decrease, while the share scale of closed-end funds is fixed;

Thirdly, in terms of transparency and liquidity, ETFs publish their portfolio shares every day, while closed-end funds publish their portfolios every quarter or half a year.