1, natural difference

The Chinese name of ETF is transactional open-end index fund, and LOF is listed open-end fund.

2, the difference between investment objectives

ETF adopts passive management strategy and tracks indexes, belonging to index funds. LOF can invest in indexes or other stocks with active management strategies.

3, the difference between liquidity

ETF's liquidity is generally very strong, while LOF's liquidity is related to trading activity, which may be relatively strong or relatively weak.

4. The difference between redemption methods.

ETF can buy and redeem fund shares from fund management companies, but it must be exchanged with a basket of stocks. If you trade on the floor, you will exchange it in cash, while LOF only needs to exchange cash for fund shares.

5. The difference with ordinary open-end funds.

Compared with ordinary open-end funds, ETF is a completely duplicated index, which adopts passive tracking strategy and trades on the market. Compared with ordinary open-end funds, LOF only increases the on-site trading mode.