ETFs vs Unit Trusts (Part 1)
Exchange Traded Funds (ETFs) are funds that track an index, a commodity or a basket of assets like an index fund, but trades like a stock/share on a stock exchange.
Because ETFs are traded like stocks/shares on a daily basis, an ETF does not have its NAV calculated on a daily basis like a unit trust fund. By owning an ETF you get the diversification of an index fund, the ability to sell short, buy on margin and there are no limits on the amount of units that can be purchased.
In addition, the expense ratios of most ETFs are lower than the average unit trust or mutual fund, making ETFs a cheaper alternative. A trend of ETFs outperforming unit trusts have emerged and many defensive investors are now looking at ETFs as a more attractive option.
Don't miss out on investing in these attractive investment vehicles.............
Exchange Traded Funds (ETFs) are funds that track an index, a commodity or a basket of assets like an index fund, but trades like a stock/share on a stock exchange.
Because ETFs are traded like stocks/shares on a daily basis, an ETF does not have its NAV calculated on a daily basis like a unit trust fund. By owning an ETF you get the diversification of an index fund, the ability to sell short, buy on margin and there are no limits on the amount of units that can be purchased.
In addition, the expense ratios of most ETFs are lower than the average unit trust or mutual fund, making ETFs a cheaper alternative. A trend of ETFs outperforming unit trusts have emerged and many defensive investors are now looking at ETFs as a more attractive option.
Don't miss out on investing in these attractive investment vehicles.............
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