Managed Funds vs Exchange Traded Funds (ETF)

[ENP]

I'm looking into investing in either international managed funds or international ETF funds.

I want to know the main benefits of an ETF as compared to a managed fund? Sure I can sell a bit easier, but will have to contact brokers, may not be able to drip feed as easy, have to deal with dividends, etc.

Basically, why should I choose an ETF compared to a managed fund?

[OldRider]

There are taxation differences which I know little about.

As I understand it, - the manager of a managed fund is required to repurchase units when requested by a unit holder, consequently being prudent they maintain a sizeable cash balance, even so with a market downturn as has happened recently, held cash can still prove to be insufficient, and redemptions can be suspended. You can't get your money. This is probably more likely with real estate and mortgage funds than with share funds which are more liquid, nonetheless, asset sales may still be required which tends to
push their price downwards.

Companies don't face this prospect so can hold less, or invest more, of your cash, as well in difficult times they will not have to make asset sales. Your share price may well suffer, look at the link I posted in another thread you started, and you will see that
many companies are selling well below NTA.

For myself I have bought into investment companies selling well below NTA for 6 -9 months or so thinking they are a low risk investment, so far the return has been good,
although returns have been erratic, some up a lot, others still languishing.

I guess there are other factors as well,like management costs and fees, this is a start.

[POSSUM THE CAT]

ENP if you deal with an online broker like Direct $1000 per entry would be $30 against $50 for most managed funds

[Dubdee]

Managed funds normally redeem at NTA whereas listed funds trade on market normally at a discount to NTA. Some of these discounts can be very large and can fluctuate. Eventually if that is the case the listed fund will start buying back its own units. Tax may be the finall complication as local funds now have a tax preference against internationaly based listed funds unless they fit withn FDR.