general

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

Exchange-traded funds (ETFs) are investment products that track indices. They offer liquidity advantages compared to some other investment vehicles.

Fees and Charges

ETFs generally have lower fees and charges than actively managed investment funds. This is because ETFs tend to have lower management fees, and there is usually no sales charge when you buy and sell.

Illustration of exchange-traded funds tracking an index

Comparing to Unit Trusts

In Singapore, ETFs can be compared to unit trusts. It is important to check with your financial institution whether the product you are considering is a Supplementary Retirement Scheme (SIP) product.