ETF and LOF funds: ①, different meanings.

ETFs are open-end funds that track a certain index and can be listed on an exchange.

The LOF fund is a listed open fund. It is the first fund type in China and is also the Chineseization of ETF funds.

②. The places for subscription and redemption are different.

Both ETFs and LOFs combine the characteristics of closed-end funds and open-end funds. They can be purchased in the primary market and redeemed in the secondary market.

However, the places for subscription and redemption are different.

The subscription and redemption of ETFs can only be carried out on exchanges, that is, only on-site transactions can be carried out, while LOF can be carried out on exchanges or at agency sales outlets.

③. The objects of subscription and redemption are different.

ETFs adopt "physical subscription and physical redemption". Investors subscribe for a basket of stocks and redeem a basket of stocks.

The LOF fund may subscribe for a basket of stocks, but the redemption is in cash.

④, transaction restrictions are different.

The threshold for ETFs is high, and the minimum transaction requirement is more than 500,000 shares. Only investors with large amounts of funds can participate. LOF has no special requirements for subscription and redemption, and ordinary investors can also participate.

⑤, investment strategies are different.

ETF funds track a certain index. For example, the SSE 50eft tracks the SSE 50 Index and completely replicates the constituent stocks of the SSE 50. Therefore, it is a completely passive investment method.

LOF is just an ordinary open-end fund that can be listed on the exchange. It can be either a passive investment or an active investment.

⑥. The frequency of net worth quotations is different.

In the secondary market, ETF funds provide fund quotes every 15 seconds, while LOFs provide fund quotes once a day or several times a day.