What's the difference between etf fund and lof fund?
1, the nature of the fund is different.
Although etf and lof funds are both open-end funds, they are essentially different. Etf is an open-end fund, trading index, tracking an index, and can be listed on the exchange. Lof fund is a public offering fund.
2. Different trading places
Etf funds and lof funds can be traded in the primary market and redeemed in the secondary market. However, ETFs can only be traded on the floor, and lof can be traded on the floor or off-site.
3. Different trading restrictions
Because etf funds are traded on the market, the threshold is high, and the transaction volume is at least 500,000, which is suitable for investors with large funds. Lof funds have no special requirements for subscription and redemption, and ordinary investors can also participate.
4. Different investment strategies.
Etf funds track an index, which is a completely passive investment method. Lof fund can be a passive investment strategy or an active investment strategy.
5. Net worth is published in different ways.
In the secondary market, etf funds, like securities, provide a fund quotation every 15 seconds, while lof funds generally quote every 1 day/time.
6. Different counterparties
Etf subscription and redemption are all a basket of stocks; Lof funds can buy a basket of stocks, but redeem cash.
The above is about the difference between etf fund and lof fund. I will talk to you here, hoping to help you. Warm reminder, financial management is risky and investment needs to be cautious.