2 is the first choice of China banking industry.

3 Substantial growth

4 online transactions are the most

5. Similarities between 5.LOF and ETF

First, the same cross-level market

ETF and LOF have primary market and secondary market, which can be purchased and redeemed through institutional outlets such as fund sponsors, managers and banks like open-end funds. It can also be used as a closed-end fund.

Trading through the exchange system.

Second, there are arbitrage opportunities in theory.

Due to the coexistence of the above two trading methods, the purchase and redemption prices depend on the net asset value of the fund unit, while the market transaction price is formed by system matching, which is mainly determined by market supply and demand. There is likely to be a certain degree of deviation between the two. When this deviation is enough to offset the transaction cost, there will be theoretical arbitrage opportunities. Investors can get the difference income by buying low and selling high.

Third, the discount premium is small.

Although the transaction price of fund units is affected by the relationship between supply and demand and the market of the day, it always fluctuates around the net value of fund units. Because of the existence of the above arbitrage mechanism, when the deviation between the two exceeds a certain degree, it will lead to arbitrage behavior, so that the transaction price will return to the net value, so its discount premium level is much lower than that of simple closed-end funds.

Fourth, low cost and strong liquidity.

There is no need for subscription and redemption fees in the transaction process, only 0.5% bilateral fees are needed. In addition, due to the existence of both primary market and secondary market, the liquidity is obviously stronger than that of ordinary open-end funds. In addition, ETF is a passive investment, and its management cost generally does not exceed 0.5%, which is far lower than the level of open-end fund 1%- 1.5%.

The difference between LOF and ETF

First, the applicable fund types are different.

ETF is mainly a passive investment fund product based on an index. LOF can be used not only for passive investment fund products, but also for economic investment funds, although open-end funds are listed on the exchange.

Second, the targets of subscription and redemption are different.

At the time of subscription and redemption, ETF exchanges fund shares and "packages" stocks with investors, while LOF exchanges fund shares with investors in cash.

Third, the participation threshold is different.

According to foreign experience and the design scheme of Huaxia Fund SSE 50ETF, the basic unit of its subscription and redemption is 6,543,800 fund units, which has a high starting point and is suitable for institutional customers and powerful individual investors. The subscription and redemption of LOF products, like other open-end funds, starts from 1000 fund units, which is more suitable for small and medium investors to participate.

Fourth, the arbitrage operation mode and cost are different.

ETF must buy and sell a basket of stocks in the process of arbitrage trading, which involves both funds and the stock market, while LOF arbitrage trading only involves the trading of funds. The more prominent difference is that, according to the design of ETF in Shanghai Stock Exchange, providing investors with real-time arbitrage opportunities can realize T+0 trading, and its transaction costs are mainly impact costs besides transaction costs; At present, the trading design of LOF in Shenzhen Stock Exchange is that the fund shares purchased and redeemed and the fund shares traded in the market are managed by China Registration System and China Clearing Shenzhen Branch respectively. Transactions across the subscription and redemption market and the exchange market must be transferred between systems and take two trading days, so LOF arbitrage has to bear the waiting cost, which further increases the arbitrage cost.

Market impact of LOF and ETF

First of all, the influence of LOF

The launch of LOF provides investors of open-end funds with new exit ways and means, and also provides investors with convenient trading methods for investing in funds.

With the launch of LOF products, the subscription and redemption costs of open-end funds in China may also decrease. Because, for investors, if the gap between the transaction cost in the secondary market and the first-level purchase and redemption cost is too large, it is likely that the purchase will be unfavorable at the time of issuance, but the transaction will be active after listing on the exchange.

LOF can build a bridge between closed-end funds and open-end funds and provide a good technical platform. If it is implemented smoothly, it can promote and solve the problem of closed-end funds turning into open-end funds.

Second, the influence of ETF.

ETF's investment strategy of completely replicating the index will further promote the application of the indexed investment concept in China stock market. ETF funds closely follow a representative index. Investors buy a fund unit, which is equivalent to buying all the stocks of this index by weight. Therefore, as long as this index can fully reflect the trend of the general trend, investors will not have the situation of "making an index but losing money", and they can correctly determine the profit and loss according to the trend of the general trend.

ETF provides the arbitrage function of the underlying index, which will attract a large number of investors to invest in the constituent stocks of the corresponding index, keep a close eye on the deviation between the ETF price and the portfolio value of the constituent stocks, and carry out a large number of arbitrage operations until this deviation returns to the scope of no arbitrage space. These frequent and massive arbitrage transactions will increase the activity of the underlying stock, thus promoting the liquidity of the underlying index, reducing the fluctuation of the index and maintaining market stability. It seems that more people buy ETFs.

6 Tian Tian Fund Network Oriental Fortune