1 has different meanings.
Etf (Exchange Index Open-end Fund) is an open-end fund that tracks an index and can be listed on the exchange. Lof fund is a listed open-end fund, a type of fund initiated by China, and a Chinese etf fund.
2. The place of purchase and redemption is different.
Etf and lof combine the characteristics of closed-end funds and open-end funds, which can be redeemed in both the primary market and the secondary market. But the place of purchase and redemption is different. The application and redemption of etf can only be carried out in the exchange, that is, only on-site transactions can be carried out, and lof can be carried out in both the exchange and the consignment outlets.
3. The targets of subscription and redemption are different.
Etf adopts "physical purchase, physical redemption". Investors buy a basket of stocks and redeem a basket of stocks. Lof fund may buy a basket of stocks, but it redeems cash.
4. Different trading restrictions.
Etf has a high threshold, with a minimum transaction requirement of more than 500,000 copies. Only investors with large funds can participate. Lof has no special requirements for subscription and redemption, and ordinary investors can also participate.
5. Different investment strategies.
Etf funds track an index, such as SSE 50eft and SSE 50 Index, and completely copy the constituent stocks of SSE 50, so it is a completely passive investment method. Lof is just an ordinary open-end fund, which can be listed on the exchange. It can be passive investment or active investment.
6. The frequency of online quotation is different.
In the secondary market, etf funds provide fund quotation once every 15 seconds, while lof is 1 time every day, that is, 1 time every day.
Supplementary information:
1.ETF is an open-end fund with variable fund share, which is listed and traded on the exchange. ETF accepts constituent securities (stocks, bonds, etc.). ) or select the commodities included in the index as investment objects, and make passive investment through complete replication or sampling replication according to the types and proportions of securities or commodities that constitute the index. ETF adopts physical purchase and redemption mechanism, and primary market and secondary market transactions coexist.
2.LOF is an open-end fund, which can purchase and redeem fund shares in the OTC market, and can also conduct fund share trading and fund share purchase or redemption in the exchange (floor market). It is a localized innovation of China Securities Investment Fund. LOF combines the sales advantages of consignment agencies such as banks and exchange trading networks, and opens up new channels for open-end fund sales.