ETFs can only be purchased and redeemed per share, but not over-the-counter purchase and redemption. Through the trading software of various securities companies (such as Essence Securities), you can directly subscribe and redeem on the exchange after buying a basket of stocks.

Because the subscription and redemption rules of ETFs can only be for a basket of stocks, and whether you buy stocks or sell stocks for cash, it can only be done on the exchange.

Therefore, not only can you trade on the exchange, but you can also subscribe and redeem, but instead of using cash to subscribe and redeem, you can use a basket of stocks.

This basket of stocks is the stock portfolio of the index corresponding to the ETF.

LOF funds are much simpler. You can directly purchase and redeem shares in an amount, both on and off the market, and you can also trade directly on the market.

However, if you subscribe and redeem over-the-counter, you need to transfer custody before you can transfer it to on-site trading. If you subscribe and redeem on-site, you can sell it directly after the account is received on T+2.