1. ETF funds with different investment channels are allowed to trade as a transactional open index fund, but ordinary funds cannot. On-site trading requires opening a stock account, while off-site trading can be traded on third-party platforms such as Alipay and Tiantian Fund.
2. ETFs with different trading efficiency are just like stocks. They have real-time trading prices in the secondary market. They can be traded by stock trading at any time during trading hours. You need to make your own quotation for buying and selling, and then wait for others to make a deal. If no one accepts your quotation, the transaction will fail, and you may not be able to buy or sell it today. However, there is a certain delay in the subscription and redemption of ordinary funds. Ordinary funds are traded with fund companies, and fund companies will give out the net value of funds. Our subscription and redemption of funds are calculated according to the net value.
3. Different fund shares The total share of ordinary funds is not fixed, and the number of subscriptions and redemptions cannot be determined. In order to meet the redemption needs of investors, ordinary open-end funds will set aside 5% of cash to cope with such situations; The ETF fund has a fixed number of shares, and the buyers are all from the sellers to keep a balance, so the position of the ETF fund can reach 1%.
4. ETF funds with different trading hours cannot be sold on the day of purchase, but they can be sold on the next trading day, which belongs to T+1 trading; Ordinary OTC funds need to wait T+2 days to trade.
5. Different transaction costs ETFs have lower transaction costs. Generally, only transaction commissions are charged, and stamp duty is not charged. The specific amount depends on the securities company. However, the handling fee of the general fund is higher, including subscription fee, redemption fee, management fee and custody fee.