ETFs versus managed funds and what sets them apart

<p>ETFs and managed funds are both great investment mechanisms but there are a few distinct differences that set them apart.</p> <p>That said, both options have numerous benefits, and one shouldn’t rule out the other without understanding both and taking into consideration your own risk appetite, level of investment experience, and financial objectives. Each one is suited to different needs and requirements.</p> <p>The key difference between an ETF, which stands for “Exchange-traded funds” and a managed fund is suggested in the name itself. ETFs are listed on a stock exchange whereas managed funds are not listed on an exchange.</p> <p>Managed funds, which can be accessed directly through a fund manager, maybe an enticing vehicle of investment for those who wish to incrementally add savings to their investment because regular contributions are allowed under managed funds. ETFs, on the other hand, are purchased and sold like stocks &#8211; so investors must open an account through a stock market broker.</p> <p>With an exchange-traded fund, information about its underlying holdings is very transparent and readily available, whereas fund managers are not required to disclose the portfolio’s holdings. So, if transparency is something that is important to you, ETFs disclose all holdings. Having said that, it’s worth noting that most fund managers readily disclose their top 10 holdings, which usually account for the lion’s share of the fund anyway.</p> <p>Another difference to note is that investments made through ETTs can be sold faster than investments in managed funds because ETF investors can sell anytime the exchange is open and trading. Managed funds usually take 1 business day.</p> <p>Finally, when comparing costs, it’s important to compare the attributes of the funds and their net fees returns, not just the fees in isolation.</p> <h3>How can the ACY Fund Manager Program help you?</h3> <p>Named Australia’s number 1 partner program in 2020, the ACY Fund Managers program is a bespoke partner solution tailored to suit your trading requirements and help you grow your business.</p> <p>With free access to our MAM/PAMM accounts and free use of Limited Power of Attorney (LPOA), you can manage an unlimited number of sub-accounts and execute your trading strategies at competitive prices &#8211; all with the speed, efficiency, and reliability you need.</p> <p>If you’re ready to take your fund to the next level, reach out to us at&nbsp;<a href="mailto:[email protected]">[email protected]</a>&nbsp;to start a conversation and discover what’s possible with ACY behind you every step of the way.</p>