1, trading places is different.
On-site funds are generally traded in the secondary market, that is, like stocks, on the secondary market, while off-site funds are generally traded in some fund companies such as official website, banks and Alipay platforms.
2. Different thresholds
For some OTC funds, you can start from 10 yuan, and the average number of OTC funds starts from 100, so the threshold is relatively high.
3. Different costs
In the secondary market, OTC funds only charge commission fees, while OTC funds need to charge certain subscription fees, redemption fees and operating expenses, which are relatively high.
4. The price announcement is different.
Due to the influence of market supply and demand, the price of on-site funds is updated in real time, while the net value of off-site funds is generally not announced until that evening.
5. The arrival time of funds is different.
When the on-site fund is sold, its funds will go to the stock account on the same day, and when the off-site fund is sold, its funds will not arrive on the same day and need to be postponed. Different types of funds arrive at different times.
At the same time, investors can take advantage of the spread between on-site and off-site funds to carry out arbitrage, that is, when the etf price in the market is less than the net value, investors can buy etf fund shares at a low price in the secondary market, then redeem the primary market share according to the net value, and then sell the share in the secondary market to complete arbitrage; When the etf price in the market is greater than the net value, investors can buy a basket of stocks from the secondary market, then convert them into etf fund shares in the primary market according to the net value, and then sell ETFs at high prices in the secondary market to complete arbitrage.
When investors arbitrage funds on and off the market, the spread generated by arbitrage must be greater than the formalities fee, which includes the fund subscription fee, redemption fee and fund transaction fee (commission, stamp duty and transfer fees are not included in the fund sales on and off the market), otherwise the loss outweighs the gain.