Benefits of Exchange Traded Funds

UBS IQ Exchange Traded Funds offer the following benefits for investors:

Benefits  

Diversification
Easy access to a diversified portfolio of securities in a single transaction

Low Cost
ETFs are generally cheaper than traditional managed funds.

International Exposure
Gain exposure to securities listed on global exchanges of the world's major economies.

Ease of access & Liquidity
Trade units in the ETF as simply as trading any other ASX listed share.

Transparency
View the ETFs underlying portfolio of shares and the price daily.

Flexibility
ETFs trade and settle like any ASX listed security and can be bought and sold during ASX trading hours

Comparing ETFs to other investment vehicles

 

ETFs

Mananged Funds

Shares

Pricing

Intra-day / continuous

End of day, weekly or monthly

Intra-day / continuous

Liquidity

High

Varies depending on structure.
Closed-ended structures may have limited liquidity

High

Accessibility

High

Entry via a fund manager or intermediary

High

Expenses / Fees

Low MER
Standard Brokerage

Buy/Sell spread
Higher MER.
Performance fee and commissions possible

No MER
Standard brokerage

Diversification

High - index exposure

High

Low

Transparency

Index constituents
generally available daily

On request, rarely daily
Often will not disclose portfolio

N/A