Guide to ETFs: Understanding Exchange-Traded Funds
Learn how ETFs track indices, their liquidity advantages, and how they compare to unit trusts in Singapore.
Understanding ETFs
The Guide to ETFs from MoneySense explains how ETFs track indices, their liquidity advantages, and how they compare to unit trusts in Singapore.
Fees and Charges
Index tracking ETFs have fees and charges that are usually lower than those of actively managed investment funds. Fees and charges tend to be lower because ETFs have lower management fees, and there is usually no sales charge, although you may incur charges when buying and selling.
Checking the Product Type
It is advisable to check with your financial institution whether the product you are considering is an SIP (Specified Investment Product).
ETF Structure
There are different ways to structure an ETF even if its investment objective is to track the same underlying index. One such structure is a cash-based ETF.