1. Listed open-end funds are still open-end funds in essence, and the total amount of fund shares is not fixed. Fund shares can be purchased and redeemed at the time and place agreed in the fund contract.

2. The sale of listed open-end funds combines the sales advantages of banks and other consignment agencies with the trading network of Shenzhen Stock Exchange. Banks and other agency outlets still use the current counter sales method, while the trading system of Shenzhen Stock Exchange adopts the popular online pricing and issuance method of new shares.

3. After the listed open-end fund is approved to be listed and traded on the Shenzhen Stock Exchange, investors can choose to purchase and redeem the fund shares at the closing net value of the fund shares in banks and other consignment agencies, or they can choose to buy and sell the fund shares at the matching transaction price in the member securities business department of the Shenzhen Stock Exchange.

Difference:

1, 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 also listed on the exchange.

2. The targets of subscription and redemption are different. LOF is a cash exchange between fund shares and investors during subscription and redemption.

3. The threshold for participation is different. 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.

4. Arbitrage works in different ways. Unlike other funds, LOF's arbitrage trading only involves fund trading.

5. The cost is different. At present, the trading design of LOF in Shenzhen Stock Exchange is that the fund shares purchased and redeemed and the fund shares traded on the market are managed by China Registration System and China Clearing Shenzhen Branch respectively, and LOF arbitrage has to bear the waiting cost of time, which increases the arbitrage cost.

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Investors can reduce transaction costs by trading funds in the secondary market. At present, the transaction cost of closed-end funds consists of three parts, namely, transaction commission, transfer fees and stamp duty, in which transfer fees and stamp duty are not charged, and the transaction commission is 3‰, which can fluctuate downwards according to the different transaction volume, and the lowest can be around 1‰. Compared with the OTC transaction cost of open-end funds, the types of open-end funds are different. According to the statistics of two-way trading, the rate of on-site trading is 6‰, the subscription and redemption of OTC stock funds are above 15‰, and bond funds are generally above 6‰. The cost of over-the-counter trading is far greater than that of on-site trading. This is also part of the meaning of LOF Fund.

References:

Lof Fund _ Baidu Encyclopedia