LOF fund is called "Listened Open-Ended Fund" in English and "ListedOpen-EndedFund" in Chinese. In other words, after the issuance of listed open-end funds, investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges.

2. Exchange traded funds

Transactional open-end index fund, also known as ExchangeTradedFund (ETF), is an open-end fund with variable fund share, which is listed and traded on the exchange.

3、QDII？

QDII fund refers to a securities investment fund established in a country and approved by the relevant departments of the country to engage in securities business such as stocks and bonds in overseas securities markets. Like QFII, it is also a transitional institutional arrangement, allowing domestic investors to invest in overseas securities markets to a limited extent when the currency is not fully convertible and the capital account is not yet open.

Extended data:

LOF fund arbitrage operation provides investors with two arbitrage opportunities.

When the transaction price of LOF fund in the secondary market exceeds the net value of the fund, it is hereinafter referred to as Class A arbitrage. LOF fund has two prices: the transaction price in the secondary market and the net value of the fund. LOF fund secondary market transaction price is the same as the stock secondary market transaction price, which is the price generated by investors buying and selling each other.

LOF fund net value is the actual value formed by fund management companies after purchasing financial instruments such as stocks and bonds with raised funds. The trading price fluctuates continuously during the trading time of one day, and the net value of the fund is calculated by the fund management company according to the closing prices of stocks and bonds on that day after the market closes every day. There is only one net worth in a day.

When the transaction price of LOF fund in the secondary market exceeds the net value of the fund, and the difference is greater than the transaction cost (general subscription fee 1.5%+ transaction cost in the secondary market of 0.3%), then the A-type arbitrage opportunity appears.

Baidu Encyclopedia -—lof Fund

Baidu Encyclopedia-Trading Open Index Fund