In China, fund financing can be roughly divided into two categories, namely on-site funds and off-site funds. Generally speaking, "market" refers to exchanges, and China exchanges generally refer to Shanghai Stock Exchange and Shenzhen Stock Exchange. So what is the difference between etf on-site funds and off-site funds? Let's get to know each other.

The difference between etf on-site funds and off-site funds

The trading mechanism of 1 is different: on-site funds directly buy and sell fund shares with other investors; OTC funds are purchased and redeemed by investors from fund companies.

2. Different bid-ask prices: On-site funds are formed by mutual buying and selling between investors, and are influenced by the demand of buyers and sellers in addition to their own net fund value; OTC funds directly calculate the net value of the fund after the end of the trading day.

3 transaction cost: the transaction cost of on-site funds depends on the commissions of different brokers, generally around 0.003%; OTC funds are generally between 1.2% and 1.5% according to different types of funds, and some platforms will give preferential treatment to fund transaction fees.

4. Investment threshold: at least 100 copies are required for on-site fund transactions, and the prices of different funds are different; The trading threshold of OTC funds ranges from 10 yuan to 1000 yuan.