What's the difference between lof fund and etf fund?
1, the transaction mode is different.
At the time of subscription or redemption, etf exchanges fund shares and "a basket" of stocks with investors, while lof exchanges cash with investors.
2. The daily quotation frequency is different.
On the net quotation of the secondary market, etf provides a net quotation of funds every 15 seconds, and lof provides a net quotation of funds every day.
3. The essence is different
Etf is essentially an exponential open-end fund with passive management. Lof is an ordinary open-end fund, which increases the trading methods of the exchange. It may be an index fund or an actively managed fund.
4. Different exchange places
Etf is an on-site transaction, that is, it is traded on the exchange, while lof can be traded both on-site and off-site, that is, it is traded on the exchange, and the fund shares are purchased and redeemed at designated outlets.
Etf appears in the form of etf linked funds off-site, that is, investors generally buy etf linked funds off-site. Having said these differences, I believe investors should also understand them.