What's the difference between etf and fund?
1 has different properties.
Etf is an open-end fund with variable fund share, which is listed and traded on the exchange and included in the fund. In addition to etf, general funds also include many other types, such as closed-end funds, index funds and so on.
2 different trading venues
ETF needs to be traded on the stock exchange, and ordinary funds can be traded on banks, brokers and third-party platforms.
Three different trading mechanisms
Etf adopts the trading system of combining primary market subscription and redemption with secondary market trading, while ordinary funds such as closed-end funds can only trade in the secondary market and cannot arbitrage.
Transparency and liquidity are different.
Etf publishes unit net value in real time every day, while general funds generally publish unit net value quarterly or semi-annually. Of course, the announcement time of different fund types is different, and the announcement of the fund company shall prevail.
5 Different transaction costs
The transaction cost of etf is relatively low, generally only commission is charged, and stamp duty is not charged. Most ordinary funds charge higher fees, including subscription fees and redemption fees, as well as management fees and custody fees.