Etf (Exchange Index Open-end Fund) is an open-end fund that tracks an index and can be listed on the exchange. Lof fund is a public offering-to-open fund, a fund type initiated by China, and a Chinese etf fund.

As the name implies, index funds are fund products with specific indexes (such as Shanghai and Shenzhen 300 Index, S&P 500 Index, NASDAQ 100 Index, Nikkei 225 Index, etc.). ) as the underlying index, and take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the underlying index.

2. The place of purchase and redemption is different.

Etf and lof combine the characteristics of closed-end funds and open-end funds, which can be redeemed in both the primary market and the secondary market. But the place of purchase and redemption is different.

The subscription and redemption of etf can only be carried out in the exchange, that is, only on-site transactions can be carried out, and lof can be carried out in both the exchange and the consignment outlets.

At present, the mainstream indexes in the market are the Shanghai and Shenzhen 300 Index, the S&P 500 Index and the Nasdaq 100 Index.

3. Different investment strategies.

Etf funds track an index, such as SSE 50eft and SSE 50 Index, and completely copy the constituent stocks of SSE 50, so it is a completely passive investment method.

Lof is just an ordinary open-end fund, which can be listed on the exchange. It can be passive investment or active investment.

Index fund investment is better than active management investment in 82% to 90% cases.

Baidu encyclopedia-index fund

Baidu Encyclopedia-Trading Open Index Fund

Baidu encyclopedia -lof fund