ETFs and index managed funds are both useful tools for creating portfolios. But there are important differences between them. We list out what they are.
When it comes to constructing a portfolio, deciding which tools to use can be tricky.
Index managed funds and ETFs both offer investors an easy way to purchase a unit-based share in a portfolio tracking a specific investment index. In many cases, both structures own the same underlying assets.
The decision on which vehicle to use often comes down to the structure best suited to your particular circumstances.
Here are some similarities and differences worth knowing when deciding whether to use ETFs or managed funds in your portfolio: