The differences between the two are as follows: first, ETF is essentially an index-type open-end fund and a passively managed fund, while LOF is an ordinary open-end fund that increases the trading mode of exchanges, which may be an index-type fund or an actively managed fund; Secondly, when purchasing and redeeming, ETF exchanges fund shares and "a basket" of stocks with investors, while LOF exchanges cash with investors; Thirdly, in the primary market, that is, when purchasing and redeeming, ETF investors are generally large investors, such as institutional investors and large-scale individual investors, while LOF is not restricted; Finally, in the secondary market, ETF provides a net quotation of funds every 15 seconds, while LOF provides a net quotation of funds every day.

1, ETF refers to the fund that can be traded on the exchange. ETF usually adopts a completely passive management mode, aiming at fitting an index. It provides investors with two trading methods: exchange trading, subscription and redemption. On the one hand, like closed-end funds, investors can buy and sell ETFs on exchanges, and they can sell short and trade margins like stocks (if the market allows these two forms of stock trading); On the other hand, like open-end funds, investors can purchase and redeem ETFs, but when purchasing and redeeming, ETFs exchange fund shares and "a basket" of stocks with investors. ETF has the characteristics of tax advantage, cost advantage and flexible transaction.

2.LOF is an innovation of open-end fund trading mode, and its more realistic significance lies in: on the one hand, LOF provides technical means for "closed to open". For closed-end funds, LOF is a solution that inherits the characteristics of closed-end funds and increases the exit mode of investors. For closed-end funds, LOF is not only a reasonable change of fund trading mode, but also a reasonable inheritance of open-end funds to closed-end funds. On the other hand, LOF's on-site trading reduces the redemption pressure. In addition, LOF has increased the sales channels of fund companies and eased the sales bottleneck of banks. _OF is similar to ETF in that it has both over-the-counter trading and on-site trading, which also provides investors with the possibility of arbitrage. In addition, LOF is different from the current open-end fund, which increases the trading flexibility brought by on-site trading.