|ETF||Unit Trust||Investment Trust|
|Structure||Open-ended. Price directly linked to NAV||Open-ended. Price directly linked to NAV||Closed-ended. Price indirectly linked to NAV and driven my market|
|Trading||Anytime during market hours at real-time prices||Once a day on unknown future prices||Anytime during market hours|
|Buy||Through a broker||From Fund Manager, Supermarket or IFA||Through a broker|
|Unit/Shares price||Close to NAV (minimal tracking error)||At NAV (once in 24 hours)||At discount or premium|
|Investment style||Tracker||Active or Tracker||Active (small no. of tracker)|
|Stamp duty (on purchase)||No||No||Yes|
|Initial charges||0 + broker’s fee||Up to 1% & broker’s fee (if through broker)||Typically 0 + broker’s fee|
|Annual charges||0.20 – 0.75%||Up to 1.75%||Typically around 1%|
With ETFs the fees are minimal, and trading is much more convenient. You don’t have to write off a whole load of forms, you can buy and sell within a day.’
Justin Urquhart-Stewart, 7 Investment Management
ETPs segment sectors
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