I Only invest in ETFs…

Let's dive into the world of Unit Trusts and ETFs, two popular investment options. Unit Trusts are typically actively managed, meaning a fund manager makes decisions about how to allocate assets. On the other hand, ETFs are usually passively managed, aiming to replicate the performance of a specific index.

One of the key differences between the two is trading flexibility. ETFs can be traded during trading hours, just like stocks. This gives you the ability to respond quickly to market changes.

When it comes to costs, ETFs generally have the upper hand. With lower fees, they can save you a significant amount in the long run. Just think about it - a 1.5% fee might not seem like much, but it could result in a 30% loss in potential gains over time.

But here's the thing - both ETFs and Unit Trusts have their place in an investment portfolio. Some Unit Trusts, like the Medallion Fund, have even outperformed the market. So, whether you're team ETF or team Unit Trust, the key is to understand your options, assess your risk tolerance, and make informed decisions. Happy investing, friends!

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