1. The capital requirements are different: ETF funds use a "basket" of stocks to purchase ETF fund shares, and they also get a "basket" of stocks when they are redeemed, so the amount of funds needed for ETF fund purchase and redemption is large.

2. There are different ways to purchase and redeem: LOF funds are exchanged with cash and fund shares whether they are purchased or sold. Because the subscription and redemption of ETF funds are all a basket of stocks, ETF fund positions can be Man Cang, while LOF funds have to deal with the redemption of citizens, so they generally don't Man Cang.

3. Different investment targets: FOF fund is a kind of investment fund. FOF fund does not directly invest in stocks or bonds, but indirectly holds stocks or bonds by investing in other funds.

4, the degree of risk is different: the transaction cost of FOF fund is higher, but the risk is also lower, which is suitable for people who pursue stable expected returns.

: lof, "Listened Open-Ended Fund" is a Listed Open-Ended Fund, which is a localized innovation of securities investment funds in China. LOF can purchase or redeem fund shares through fund sales organizations, purchase or redeem fund shares on exchanges through securities accounts, and trade fund shares on exchanges like buying and selling stocks. LOF can be an index fund or an active management fund.

ETF: "exchange traded fund", that is, a transactional open index fund, refers to an index fund that takes the component securities (stocks, bonds, etc.) contained in a selected index (the underlying index) as the investment object, and makes passive investment according to the types and proportions of the component securities, so as to realize close tracking of the underlying index. China's first ETF-SSE 5ETF is to completely copy the SSE 5 index for investment.

ETF has a unique physical purchase and redemption mechanism, which is the biggest difference between ETF and ordinary index funds. Investors purchase ordinary index funds in cash, and adopt the principle of "amount purchase and share redemption" according to the net value of fund shares, and also get cash when redeeming; The ETF adopts the principle of "share subscription and share redemption". Investors purchase according to the basket of securities specified in the PCF list (subscription and redemption list) published by the fund company every day, and what they get when redeeming is not cash, but a corresponding basket of securities (some ETFs can apply for redemption in whole or in part). Therefore, the operation mechanism and redemption rules of ETF are more complicated than those of ordinary index funds.