Categories of Index Products in the Domestic Market

Currently, domestic index products are divided into open-end index funds, LOFs, ETFs, and ETF feeder funds based on their trading mechanisms, each with distinct features in terms of product structure and mechanisms.

LOF (Listed Open-Ended Fund)

Is a type of open-end fund that can be listed and traded on an exchange.

The main differences between LOFs and ETFs are:

1) ETFs exchange a basket of securities and shares during subscriptions and redemptions, while LOFs use cash as the consideration;

2) LOFs can either passively track an index or actively select stocks, and they have lower subscription thresholds.

ETF (Exchange Traded Fund)

Is a type of open-end index fund that combines the advantages of closed-end funds (real-time trading within the same day) and open-end funds (flexible subscriptions and redemptions).

ETF feeder funds are index funds that invest in ETFs.

Many fund companies issue ETF feeder funds alongside ETFs to facilitate small and medium-sized investors in subscribing and redeeming outside the exchange market.
Like ordinary open-end funds, ETF feeder funds use the daily closing net asset value for subscriptions and redemptions and do not support real-time trading.