Index funds are also divided into on-exchange funds and over-the-counter funds. Ordinary open-end index funds, such as XX CSI 300 Index Fund and XX ETF Linked Fund, are OTC index funds. ETFs , LOF funds are all on-site index funds.

What are the specific differences between on-market index funds and over-the-counter index funds?

First of all, the trading objects are different. What can be purchased on-site are the aforementioned ETFs and LOF funds, while what can be purchased off-site are ordinary open-end index funds.

The trading channels are also different. On-exchange funds need to be purchased through securities company trading software. First, you must have a stock account. OTC funds can be purchased through fund companies, banks, securities companies, and other third-party platforms. To purchase, a stock account can purchase both on-exchange and over-the-counter index funds, but on-exchange index funds can only be purchased through a stock account.

Transaction costs are also different. On-exchange index funds are cheaper. The maximum unilateral transaction fee of on-exchange index funds generally does not exceed 0.3%, but the subscription of over-the-counter index funds is a unilateral purchase. The rate is around 0.6% to 1.5%. The charging method of on-market index funds is basically the same as that of stocks, charging commissions, while OTC index funds charge subscription fees, redemption fees, etc.

The arrival time is different. Under normal circumstances, on-exchange index funds can be sold T+1 working days after purchase. Funds arrive in T+1 working days. Over-the-counter index funds are purchased It can be sold after T+2 working days, and the funds will be received in T+1 working days.

The frequency of transaction price changes is different. On-site index fund prices change in real time to match transactions. OTC index funds have only one price every day and are traded according to the closing net value price of the day.