1 different places for purchase and redemption: the purchase and redemption of etf funds can only be carried out on the exchange and can only be traded on the floor; Listed open-end funds can be traded on exchanges and consignment outlets.

2. The purchase and redemption targets are different: etf fund purchase in kind, physical redemption, what is purchase and what is redemption; Lof fund can buy a basket of stocks, but it redeems cash.

3 different trading restrictions: the threshold of etf trading is relatively high, and the minimum trading threshold is 500,000 copies; Lof funds have no special requirements for subscription and redemption, and ordinary investors can also participate.

4 The frequency of net quotation is different: in the secondary market, etf funds provide fund quotation every 15 seconds; Lof funds are quoted once a day or several times a day.

Advantages and Disadvantages of LOF Fund LOF Fund is a listed open-end fund with the following advantages:

1, LOF funds can be traded on and off the market, and investors can use this function to arbitrage. Because the redemption price in the primary market is the net value of the fund and the transaction price in the secondary market is obtained through bidding, there will be a price difference between the LOF funds in the two markets, thus creating arbitrage opportunities. However, this is only theoretical arbitrage. Because there are too many factors in the market (secondary market) and the arbitrage cost is high, I don't recommend arbitrage.

2. Accelerate trading, that is, LOF will increase the on-site trading of open-end funds, and the trading will take effect immediately. The purchased fund shares can be sold on t+ 1 day, and the sold fund funds can be used on the same day if they refer to the settlement method of securities transactions. T+ 1 can be withdrawn. Compared with over-the-counter transactions, the purchase is 1 day earlier than the purchase, and the sale is at most 6 days earlier than the redemption.

3. Reduce transaction costs, that is, investors can reduce transaction costs by trading funds in the secondary market. Generally speaking, the transaction cost of fund trading is only two ten thousandths. But the secondary market is dominated by transactions. If you want to make a long-term investment in the fund, it is best to make an off-site purchase and redemption.