The Lemon Fool

Posted: **August 17th, 2019, 1:37 pm**

OhNoNotimAgain wrote:The clue is in the name.
An ETF is just an open ended fund you can trade on a secondary market.

Unlike an OEIC where you invest directly in or out of the fund, usually once a day, an ETF trader has to find a counter-party.

No he doesn't. The LSE doesn't operate a matched-bargain system, it works on a system of market makers, who are obliged to buy/sell even if they don't have someone else to immediately sell/buy onto/from. An ETF trader doesn't have to "find" anyone, the market maker provides the liquidity.

Posted: **August 17th, 2019, 7:45 pm**

Lootman wrote:
OhNoNotimAgain wrote:An ETF is just an open ended fund you can trade on a secondary market.

Unlike an OEIC where you invest directly in or out of the fund, usually once a day, an ETF trader has to find a counter-party.

For investors with time frames in decades the ability to trade at any time of the day might seem unnecessary.

An OEIC requires a counterparty as well. Except in that case there is only one counterparty - the fund issuer. And as Woodford customers have discovered, that counterparty might refuse to trade if things go badly, which is when you would most want to trade.

Yep, and as we head into a bear market the mugs in Woody's fund (me included) are stuffed. Luckily its 0.004% of my portfolio...

Posted: **August 21st, 2019, 1:15 pm**

OhNoNotimAgain wrote:For investors with time frames in decades the ability to trade at any time of the day might seem unnecessary.

So why not invest in an IT where you buy into the market at a discount? Can't see why you would choose to buy in at par with an OEIC or a ETF - but that's just me I suppose thinking that I will get more dividend income over those decades : 11% more if bought at a 10% discount.

The Lemon Fool

ETF's v Unit Trusts(or OEIC's) v Investment Trusts

Re: ETF's v Unit Trusts(or OEIC's) v Investment Trusts

Re: ETF's v Unit Trusts(or OEIC's) v Investment Trusts

Re: ETF's v Unit Trusts(or OEIC's) v Investment Trusts