First thing to remember
Don’t assume one is better than the other. ETFs and managed funds each have pros and cons. Mapping your needs to the benefits of each will help you make the right decision for your needs.
Comparing ETFs, managed funds and stocks
ETFs may be a good option if you’re looking for exposure to a specific market. Often with lower management fees1, ETFs can be traded on the stock exchange and are an alternative to managed funds.
But, despite being flexible, they may not always be the solution to your investment needs. An actively managed fund can be used for investment strategies in complex and opaque markets that may be difficult to access using other investment options. Another reason actively managed funds may be your choice of investment is if you need someone to help you make specific investments to generate above-market returns.
It can be hard to compare the differences and similarities of active managed funds, ETFs and stocks – so we’ve done it for you.