The difference is extracted from the Internet: ETF is product innovation, LOF is transaction innovation, and the differences between them are mainly as follows:

1, with different investment methods.

ETF is essentially an index-type open-end fund and a passively managed fund, while LOF has no restrictions on investment methods, and can be a passively managed fund or an actively managed fund.

2. The purchase and redemption mechanisms are different.

The subscription and redemption mechanism of ETF mainly adopts large amount and physical method. The subscription process of ETF in the primary market is as follows:

Cash-a basket of stocks-buying ETF, and the redemption process is: ETF share-redeeming a basket of stocks. The two sides of the transaction are investors and funds. The trading threshold is relatively high, and generally a larger trading unit is set. For example, the trading unit of SSE 50ETF (called the subscription and redemption unit) is 6,543,800+0,000. The price of subscription and redemption is based on the net value of ETF units. LOF's subscription and redemption mechanism is the same as that of ordinary open-end funds. The two sides of the transaction are investors and funds, and the trading threshold is relatively low. Generally, the minimum amount is 1 1,000 yuan. Both subscription and redemption are based on the net value of fund shares on the day of application. The redeemable share is the share purchased over the counter. If the on-site share needs to be redeemed, it needs to be transferred off-site across the system, which takes two trading days.