5 thoughts on “How does LOF and ETF difference?”

  1. 1. ETF is the transaction index open fund. ETF is an open fund that tracks a certain index that can be listed on the exchange. LOF Fund is a listing to open funds.

    2.lof is a fund type created by China. The purchase and redemption of ETF can only be performed on the exchange. It can only be traded on the venue. The outlets are performed.

    3.etf adopts "physical purchase, physical redemption". Investors are purchased for a basket of stocks, and a basket of shares are also redeemed. Real cash is true.

  2. Difference 1: Different subscriptions and redemption mechanisms. During the subscription and redemption period, LOF and ETF are the same during the live transaction. LOF can also conduct off -site transactions, that is, you can trade on a trading platform like an overseas fund.
    Differences 2: The threshold for participation is different. ETF has the minimum requirements for subscriptions and redemptions, with a minimum amount of 1 million copies. The starting point is high. It is suitable for institutional customers and strong personal investors. Like other open funds, LOF product subscription and redemption from 1,000 funds from 1,000 funds At the beginning of the unit, it is more suitable for small and medium investors.
    Differences 3: The type of fund is different. ETF is essentially a passive index fund. LOF funds include index funds with passive tracking indexes and stock funds that actively manage indexes. If it is the LOF index fund of the passive tracking index, the fund information will have "tracking targets". On the contrary, it is a active stock fund.
    Differences 4: In the net value quotation of the secondary market, ETF provides a net worth of fund per -second, and LOF provides a net worth of fund.
    The expansion information:
    . The definition of LOF fund
    LOF fund Chinese is called "listing open fund". Generally speaking, it is a fund that can be traded inside and outside the market.基金获准在本所上市交易后,投资者不仅可以按照当日收盘的基金份额净值在指定网点买入、赎回基金份额,还可以在本所以合并交易价格买入、卖出基金份额,即在保持Based on the existing operating model of open funds, the exchanges have increased the issuance and trading channels of the exchange.
    , it should be noted that the LOF fund cannot be purchased or sold in the market. Trading can be on -site transactions or off -site transactions. Go through a certain rotor procedure; similarly, if you buy a fund unit on the exchange and want to redeem on the designated outlets, you need to pass some re -custody procedures.
    . The LOF fund has the following advantages:
    1.lof funds can conduct on -site and off -the -market transactions, and investors can use this function to arbitrage.
    2. Accelerate transaction speed and promote transactions. Investors can buy and sell open funds such as stocks and closed funds.
    3. Reduce transaction costs, that is, investors can reduce transaction costs in the secondary market through trading funds. Generally speaking, the highest bilateral cost of the trading fund unit through the exchange fund is 0.5%.

  3. Essence LOF Fund, that is, exchange trading funds, is an open fund that can be traded on the exchange. It can also buy and sell the fund on the exchange.
    The fundraising of the fund and outside the field. Overseas raising is the same as the raising of ordinary open funds. Investors can subscribe through fund managers or banks, securities companies and other fund sales agencies. The fund shares raised through the exchange venue, investors can use Shenzhen Securities Accounts through the Shenzhen Stock Exchange Trading Day through the Shenzhen Securities Account to subscribe to the fund shares online through the securities company of the securities company with fund substitution business. The subscription share of each declaration must be an integer multiple of 1,000 or 1,000 copies, and not more than 99,99,000 copies.
    LOF share purchase and redemption: The closed period generally does not exceed 3 months. The open date should be the normal trading day of the stock exchange. After the purchase and redemption in the open market can be purchased and redeemed through the securities business department of the securities company with fund sales business qualifications. The subscription is applied for the amount, the application unit is one yuan; the redemption shall be declared, and the application unit is the unit fund share. The amount of subscription and redemption declaration is limited to the provisions of the recruitment instructions of the funds applied for. The purchase and redemption price is calculated based on the fund shares calculated after receiving the application on the day of the application. Outdoor purchase and redemption are the same as other open funds.
    LOF Fund's listing transaction: The opening price of the first day of the fund listing is a net worth of the fund share of the fund before the first trading day before the listing. After the fund is listed, investors can buy and sell the fund shares online after the securities company opens an account to the transaction system to match the transaction system. The specific provisions are as follows: 1. The number of applications for buying a LOF should be 100 copies or an integer multiple, and the minimum change unit of the declaration price is 0.001 yuan. 2. The exchanges implement a price decline limit on the LOF transaction, and the ratio of the rising decline is 10 %, which will be implemented from the first day of listing. 3. The capital T 1 after selling the fund shares of the investor T 1 can be received, and the redemption funds are at least T 2.
    etf is the English abbreviation of the "Transaction Open Index Fund", and it is an open index fund on the exchanges. ETF funds are all index funds. Each ETF tracks a specific index. The tracking index is the "target index" of the ETF, which is the "upgraded version" of the index fund.
    etf combines the operating characteristics of closed funds and open funds. Investors can buy and sell ETF shares on the exchanges in the exchange of secondary markets like closed funds, but also to purchase and redemption in the first -level market like an open fund. Back. Compared with index funds, the costs of ETFs are generally lower
    er is lower, the effect of tracking the index is better, and the tracking error is smaller. Compared with general open funds, there are large differences in transaction costs, fund management methods and transaction methods. First of all, the purchase of ETF refers to investors with a specified basket index ingredients (open funds using cash) to exchange fund management companies with a fixed number of ETF funds; while redemption is to use a fixed number of ETF fund share share In exchange for a basket management company for a basket of index ingredients (not cash), the fund assets are a basket of stock combination.
    etf's subscription methods are diverse, there are various methods such as online cash, online cash, and offline stocks.
    ETF has a variety of transactions. It can be purchased and redeemed in the primary market, or trading in the secondary market, so that the arbitrage between the first and secondary markets can be performed. ETF is exactly the same as stocks. As long as investors have securities accounts, they can buy and sell ETFs at any time on the disk. The transaction price changes in real time according to the market price. In terms of transaction costs. Traditional open funds need to pay about 1.0%-1.5%of management fees each year, which is much higher than the management fee of ETF (about 0.3%-0.5%); in addition, traditional open funds need to pay 1%-1.5%when purchasing The handling fee must pay about 0.5% of the handling fee when redemption, while ETF only pays a maximum commission of a securities company at the time of transaction, which is relatively cheaper than the transaction cost of the open
    fund. ETF's on -site transactions are exactly the same as stocks and closed funds, and fund shares are bought and sold between investors. Investors can use the existing Shanghai securities account or fund account to trade without having to open any new accounts. : ETF is the approximate value of the net value of the real -time unit of the reference unit fund (IOPV). In addition to revealing the Shanghai Stock Exchange 50 Index every 15 seconds, the Shanghai Stock Exchange will also reveal the unit fund shares of the SSE 50 Index ETF within the same time interval for investors' reference.
    ETFs are like stocks and closed funds. In securities transactions, 100 fund units are 1 trading unit (ie "1 hand"), and can apply relevant regulations for large transactions. The rise and fall of ETFs is 10% from stocks and closed funds. In order to enable the price of ETF to fully reflect the changes in the target index, ETFs are the same as closed -end units as closed -end funds, which is 1 %. In this way, the Shanghai Exchange 50 Index is 1 point per liter (drop), and the net value of the ETF fund shares of each unit will increase (down) 0.001 yuan (1 %) accordingly.
    What is ETF's "physical purchase, redemption?" ETF's fund manager will publish "physical purchase and redemption" before the market will open the market according to the fund's net asset value, investment portfolio, and the subject index of the target index. List (also known as "one basket of stock file files"). Investors can obtain the "physical purchase base" or an integer multiple ETF that delivered the fund manager of ETF according to the list content; Subscribe. The physical redemption is the opposite procedure, which reduces the flow of ETFs to the external flow of external flow, which is also the process of investors converting the "physical purchase of the base" or its integer multiple ETF into the ingredients stock of the redeemed list. ETF's physical purchase and redemption can only be delivered in the real object. Only in individual circumstances (for example, some component stocks cannot be purchased directly from the secondary market due to suspension). It can be allowed to allow some ingredients stocks to use cash replacement. Essence
    What is the basic unit of "minimum purchase, redemption unit"? ETF physical purchase and redemption, called "minimum purchase, redemption unit" or "physical purchase base". Each ETF "minimum purchase and redemption unit" may be different. The first ETF of the above certificate 50 is the first ETF as an example. Its "minimum purchase and redemption unit" is one million fund shares. Due to the large amount of "minimum purchase and redemption unit", in general, only institutional investors and large -scale individual investors can participate in the "physical purchase and redemption" of ETF.
    Like general open funds, the net value of ETF fund share refers to the value of the securities investment portfolio (including the cash part) represented by ETFs, that is, the total number of funds issued by the fund's net assets except for it.
    It in terms of fund management. The method of ETF management belongs to "passive management". ETF managers will not actively select stocks. The index's ingredient stock is the stock selection of the ETF fund. ETF operation is tracking the index. A successful ETF can be exactly the same as possible with the target index, that is, the "copy" index can make investors earn the index with peace of mind. The management methods of traditional stock funds are mostly "active management".
    ETFs are different from closed funds. When ETFs have folded and premiums, arbitrage people will eliminate differences through the "physical purchase and redemption" mechanism. This unique internal mechanism can compress the folding (overflow) price of ETF to a small range.
    I due to ETF's minimum purchase and redemption unit in the first -level market is 1 million fund shares, and the trading unit in the secondary market is only 100 funds, so general investors cannot buy in the first -level market.
    etf connection fund
    Since ETF funds are generally purchased through securities companies, some fund companies have developed ETF connection funds in order to broaden ETF sales channels. For exactly the same, general retail investors can buy ETF connection funds, and the starting point is also 1,000 yuan. The three advantages of
    etf
    (1) ETF uses an indexed investment strategy. ETF and the target index deviations are small, and investing in ETF can obtain income similar to the target index; allow investors to invest in the target index at a lower cost, making the investor investment index as simple as investing in a stock.
    (2) ETF can be traded. ETF continues to be traded during the transaction time like stocks. Investors can buy and sell based on the transaction price revealed in the real time, so as to better grasp the transaction price.
    (3) The cost of ETF is low. By copying the index and physical redeeming mechanism, ETF has greatly saved the operating costs such as research costs and transaction costs. ETF management fees and custody fees are not only lower than active management stock funds, but also lower than traditional index funds that track the same index. ETF's secondary market transaction costs are similar to stocks, which greatly reduces investors' transaction costs. ETF is a new investment tool. In the field of investment, ETF

    is no longer just an investment product, but an increasingly organized product. Investors can invest in ETFs for reinvestment, asset allocation, long -term investment, arbitrage transactions, timing selection and short -term investment. The difference between
    LOF and ETF
    The open funds (LOF) and exchange trading funds (ETFs) are relatively easy to confuse. Because they all have the characteristics of open -end funds that can be purchased, redeemed, and shares can be traded on the court. In fact, there are essential differences between the two.
    etf refers to funds that can be traded on the exchange. ETF usually uses a completely passive management method to combine a certain index as the goal. It also provides investors with exchanges transactions, purchase and redemption: but when purchasing and redemption, ETF exchange with investors with fund share and "one basket" stock.
    etf Features: At least 1 million copies of ETFs in the first -level market purchase threshold are high. If calculated at the current net value, at least about 800,000 yuan of funds are required. When applying, it is not cash, but to purchase with a basket of stocks. If it is a redemption fund share, the investor finally gets a basket of stocks, and it will take at least 1 million copies of redemption. That is to say, if you adopt the method of purchasing and redemption in ETF investment, generally retail investors are actually impossible. It can only be traded in the secondary market like closed funds and stocks (only 100 shares in the minimum investment).

  4. The difference between LOF and ETF
    (1) Different targets for purchasing and redemption. LOF is a transaction between fund shares and cash. ETF is a transaction between the fund share and the "one basket" stock.
    (2) Different places for purchasing and redemption: ETF is performed through the exchange; LOF is performed on agent sales outlets.
    (3) Different restrictions on purchasing and redemption: The amount of ETF requires a large amount, more than 1 million copies; LOF does not have special requirements in purchase and redemption.
    (4) Different fund investment strategies: ETFs usually use completely passive management methods to combine a certain index as the goal; LOF can use
    active methods or passive ways.
    (5) In terms of net worth quotation in the secondary market, ETF provides a net worth price quotation every 15 seconds; LOF usually only provides only one or several times a day
    . Net worth quotation.
    (6) The arbitrage mechanism is different: ETF can be arbitrage in real time; and LOF is not convenient for ETFs in arbitrage, and needs to bear greater arbitrage risks.
    Stocks in my country only start the LOF business on the Shenzhen Stock Exchange

  5. n00:00 / 02: 0370% shortcut keys to describe space: Play / suspend ESC: exit full screen ↑: increased by 10% ↓: reduced volume decrease by 10% →: single fast forward 5 seconds ←: single fast retreat 5 seconds Press hold up and hold it up. Here you can drag no longer appear in the player settings to reopen the small window shortcut key description

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