ETF funds trade at real-time prices, while LOF funds trade at net value.

ETF is a passive fund, while LOF fund may be a passive fund or an active fund.

ETF investors trade stocks and a basket of stocks, while LOF investors trade cash.

ETF funds buy ETF-linked funds off the market, and the linked funds track an ETF index on the market. LOF funds can arbitrage according to the price difference between on-site and off-site.

Extended data:

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

Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares in the secondary market at the market price like closed-end funds. However, the purchase and redemption must use a basket of shares for fund shares or use a basket of shares for fund shares. Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the market price of ETF and the net value of fund units. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.

According to different investment methods, ETFs can be divided into index funds and actively managed funds. Most foreign ETFs are index funds. ETF launched in China is also an index fund. ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and fund share net value trend are basically consistent with the tracked index. Therefore, investors buying and selling an ETF is equivalent to buying and selling the index it tracks, and can get basically the same income as the index. Usually, it adopts a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.

Advantages: diversification of investment, reducing investment risks; Combine the advantages of closed-end funds and open-end funds; Low transaction cost; Investors can arbitrage on the same day; High transparency; Increase market hedging tools

Characteristics of stock funds and index funds:

For ordinary investors, ETFs can also be split into smaller marketing unit and traded in the secondary market of the exchange, just like ordinary stocks.

If you earn an index, you make money. Investors no longer need to study stocks and worry about stepping on mining stocks. Before 20 10, there was no short-selling mechanism in China's securities market, so there was a situation of "losing money when the index fell". On April 20 10, stock index futures were opened. Since February 5, 20 1 165438, seven ETF funds have been included in the margin financing and securities lending scope. )