Lack of core appeal, LOF has become a forgotten corner of the market.

A significant portion of institutions currently have very limited research on LOF, with some opinions suggesting that "there is not much demand on both the supply and demand sides." When discussing the obstacles to the development of LOF products, many industry insiders attribute this to the lack of advantages in investment transparency, trading mechanisms, and liquidity. Although this product can be redeemed and traded in both the primary and secondary markets, and there are both index-based products and actively managed products, it seems to cover all aspects but also faces the embarrassment of lacking core attractiveness. Especially in secondary market trading, the lack of liquidity is a prominent issue. When discussing the future development of LOF, some industry insiders believe that actively managed LOF may become a new direction, as there are currently no actively managed products in the ETF field, and LOF may have a certain differentiation advantage in this respect. If adopting an active strategy, the fund manager's ability to actively manage will become the primary consideration for investors.