ETMFs

Genevieve Wood -

An ETMF is a listed, actively managed portfolio of assets with access to live market pricing and the ability to buy and sell the Fund’s units in the secondary market as easily as any other ASX-listed security. A number of fund managers have taken a successful managed fund and issued a listed version of it.

As with any other security, a broker places an order for units in an ETMF and executes at a known price.

  Exchange Traded Managed Funds Managed Funds

Pricing

Generally priced every 15seconds with the price available online. Each days buy and sell price is stuck the following business day

Accessibility

Online transaction and execution Involves a lengthy application form

Transacting

Investors buy or sell units in the secondary market Paperwork required for additional investment or withdrawals

Minimum investment

Stipulated by your broker-for example, OpenMarkets has a minimum of $500 $25,000 is an average figure
Settlement Settlement occurs via CHESS like any other exchange traded security, holdings are recorded on the investors HIN Units are issued, and investors receive a standalone transaction statement
SMSFs Simply transact using the Funds HIN Most fund managers require sight of trust deed, birth record and other paperwork

As with ETFs, market makers are used to issue and redeem units, and ensure a tight price range around the Fund’s net asset value. ETMFs make investment a level playing field; all investors can access a diversified portfolio of securities in the listed environment, and with a relatively small outlay.

Have more questions? Submit a request

Comments

Powered by Zendesk