The risks of these two types of funds should not be underestimated. From the actual situation, it is mainly because investors do not fully understand the two types of funds.

ETF is an indexed passive investment tool. At present, five ETFs track five indexes of Shanghai and Shenzhen stock markets. The shareholding structure of ETF is basically consistent with the weight structure of each stock in the underlying index. Therefore, the rise and fall of ETF net value tends to be consistent with the underlying index. Therefore, the short-term fluctuation range is much larger than that of balanced and allocated funds.

For LOF, irrational inflation is the main risk from the past market performance. Previously, South Gaozeng, South Jipei, Harvest 300, Bank of China China Fund, etc. The daily limit is first, and then after the dividend plan is announced. However, for LOF funds, their dividends are no different from those of ordinary open-end funds, and will not bring about any changes in income characteristics. This is completely different from the dividends of listed companies and closed-end funds with discount problems. Market participants believe that this sharp rise and fall is entirely based on misunderstanding and speculation.

Not as active as stocks.

On the other hand, the trading situation of LOF funds is far less active than that of stocks, that is, LOF investors who chase up the daily limit are difficult to get out when there is a daily limit.