CNA’s Money Mind: ETFs vs Mutual Funds

Similarities and Difference between ETF (Exchange Traded Fund) and Mutual Fund (or Unit Trust)

馃彟 Structure:
路聽聽聽聽聽聽Both ETFs and mutual funds pool money from multiple investors to invest in a diversified portfolio of assets (e.g., stocks, bonds, or commodities).
路聽聽聽聽聽聽ETFs trade on stock exchanges throughout the day, similar to individual stocks.
路聽聽聽聽聽聽Mutual funds are priced once daily based on their net asset value (NAV) and can only be bought or sold at the end of the trading day.

馃懆鈥嶐煉糓anagement Style:
路聽聽聽聽聽聽ETFs are typically passively managed, tracking market indexes or specific sectors.聽Mutual funds can be actively managed by fund managers who aim to outperform the market.
路聽聽聽聽聽聽Mutual funds鈥 performance depends on the expertise of their portfolio managers.聽ETFs rely on passive tracking of indexes, reducing the need for active management.
路聽聽聽聽聽聽However, there are actively managed ETFs and index-based mutual funds available as well.

馃挵Cost and Liquidity:
路聽聽聽聽聽聽ETFs tend to be more cost-effective due to lower expense ratios and the ability to trade throughout the day. Mutual funds may have higher fees and only allow transactions once daily.
路聽聽聽聽聽聽On average, mutual funds have a higher minimum investment requirement than ETFs. Some mutual funds have no minimum investment, but typical retail funds require between $500 and $5,000.
路聽聽聽聽聽聽ETFs have no specific minimum investment requirement.

馃憤馃憥 Pros and Cons:
路聽聽聽聽聽聽ETFs: Pros include liquidity, diversification, and low costs. Cons include potential tracking error and lack of active management.
路聽聽聽聽聽聽Mutual funds: Pros include professional management and regulatory oversight. Cons include higher fees and less liquidity.

See the interview on CNA’s Money Mind 2024/2025: ETFs vs Mutual Funds
https://www.mewatch.sg/watch/Money-Mind-2024-2025-E7-ETFs-vs-Mutual-Funds-459398

 

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  • 鍦ㄤ笌閼洘鐞嗚储杩涜璁ㄨ鎴栫璁㈠悎绾︽椂锛屾偍搴旂‘淇濇偍宸插畬鍏ㄩ伒瀹堝苟灏嗙户缁伒瀹堟偍鎵鍦ㄥ師灞呬綇鍥界殑鎵鏈夐傜敤娉曞緥鍙婃潯瑙勩

In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (鈥淔APL鈥) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL鈥檚 Data Protection Policy, which can be found on FAPL鈥檚 website at聽https://fa.com.sg/data-protection-policy/.

鏍规嵁銆婁釜浜烘暟鎹繚鎶ゆ硶銆嬶紝閼洘鐞嗚储绉佷汉鏈夐檺鍏徃寰佹眰鎮ㄧ殑鍚屾剰鍚戞偍鏀堕泦骞朵娇鐢ㄦ偍鐨勪釜浜轰俊鎭傞懌鐩熺悊璐㈠皢鏍规嵁鍏徃鐨勪釜浜烘暟鎹繚鎶ゆ斂绛栨墍闃愯堪鐨勭敤閫斾娇鐢ㄦ偍鐨勪釜浜鸿祫鏂欙紙渚嬪濮撳悕锛岃瘉浠跺彿鐮侊紝鑱旂郴鐢佃瘽锛岄偖瀵勫湴鍧锛岀數閭湴鍧鍜岀収鐗囷級銆 璇ユ斂绛栧彲鍦ㄦ湰鍏徃缃戠珯涓婃煡瀵伙紝缃戝潃涓郝https://fa.com.sg/data-protection-policy/.

By submitting this form, you are deemed to have read and understood FAPL鈥檚 Personal Data Policy.

鎻愪氦姝よ〃鏍硷紝鍗宠〃绀烘偍宸查槄璇诲苟鐞嗚В閼洘鐞嗚储绉佷汉鏈夐檺鍏徃鐨勪釜浜烘暟鎹斂绛