ETF(ExchangeTradedFund) and LOF (Listened Open-Ended Fund) are two common trading funds at present. They are LOF(ListedOpen-endedFund that can be traded in the secondary market, but there are still many people in the industry who don't know what the differences are and what their advantages are. This paper will analyze these two funds in an easy-to-understand way, and compare their advantages and disadvantages from many angles, so that investors can better understand and choose.

I. Basic concepts

ETF is a transactional open-end fund with indexes, commodities and bonds as its investment targets. It is traded through stock exchanges and can be divided into stock ETFs, bond ETFs and commodity ETFs. LOF is an open-end fund with stocks as its investment target, and it can also be traded in the secondary market.

second, the trading mode

ETF trading mode is very flexible, it can be bought and sold in the secondary market like stocks, and it can be bought and sold many times a day, and it can also be used to buy and sell options. LOF is directly issued through fund companies, and can only be bought and sold through over-the-counter transactions, which is equivalent to buying income certificates issued by fund companies.

III. Fees

The fees of p>ETF are generally low, and the fees are relatively transparent because their trading methods are mainly stocks and there are no subscription redemption fees and OTC trading fees. LOF needs to pay off-exchange transaction fees and fund management fees, which are high.

iv. Liquidity

ETFs can be traded quickly because of their flexible trading and high liquidity in the secondary market. LOF trading, on the other hand, is limited by the liquidity of fund management companies, and the flexibility of trading is poor.

v. investment strategy

ETF can make diversified investments and provide corresponding choices for investors with different risk preferences. LOF's investment strategy is managed by the fund management company alone, and investors can only buy the company's shares and cannot make diversified investments.

VI. Summary

Although ETF and LOF are both trading funds, there are many differences. ETF has the advantages of flexible trading, relatively transparent fees, high liquidity and diversified investment, while LOF has the advantage that fund management companies are relatively professional and stable in stock management, which is suitable for investors with low risk appetite. Therefore, when choosing investment funds, investors can choose suitable products according to their own risk preferences and investment strategies.