Which is better, LOF fund or ETF fund?
LOF fund and ETF fund are both funds that can be listed and traded, and there is no absolute difference between them. They have their own advantages and disadvantages. These are two different types of funds. The quality of funds is only the quality of performance, not the quality of types.
From the investor's point of view, ETF is more suitable for large capital customers, LOF is suitable for small capital investors, because the restrictions of LOF fund are much smaller than ETF, and it is more convenient to purchase and redeem.
The difference between LOF fund and ETF fund;
1 There are different subscription and redemption mechanisms. LOF and ETF are traded on the market at the time of subscription and redemption, and LOF can also be traded off-market, that is, it can be bought and sold on the trading platform like ordinary off-market funds.
2 Different thresholds for participation. ETF has a minimum requirement for subscription and redemption, with a minimum of 6.5438+0 million copies. It has a high starting point and is suitable for institutional customers and powerful individual investors. LOF's product subscription and redemption are the same as other open-end funds. The subscription starting point is 1000 fund units, which is more suitable for small and medium investors to participate.
3 Applicable to different types of funds. ETF is essentially a passive index fund. LOF funds include index funds that passively track indexes and stock funds that actively manage indexes. So how to tell? It's actually quite simple. If it is a LOF index fund that passively tracks the index, then there will definitely be a "tracking target" in the fund information, and vice versa.
On the net quotation of the secondary market, ETF provides a net quotation every 15 seconds, and LOF provides a net quotation every day.
LOF is a fund that can be traded in the market or redeemed outside the market. ETF is an open-end fund that can be redeemed in kind at any time. When screening funds, it is mainly based on the historical performance of the fund and the ability of the fund manager, not on what type it belongs to.