Etf fund belongs to index fund, lof fund does not belong to index fund. Etf fund is an on-site form of index fund, which is traded on the stock exchange. Both etf funds and index funds follow a specific index. Lof funds do not follow a specific index. There are two trading methods for funds. Investors can buy and sell on the exchange and buy and redeem on the OTC market.

Index funds take a specific index as the tracking target, and build a portfolio by buying some or all of the stocks of the index, with the aim of making the change trend of the portfolio consistent with the index, so as to obtain roughly the same rate of return as the index.

Investors should note that both etf funds and lof funds can be traded on the stock exchange, lof funds can also be traded over the counter, while etf funds cannot be traded over the counter.