ETF: Good to know

ETFs’ advantages are compelling and include:

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• Lower cost – expense ratios much lower than managed funds

• Tax efficiency – rebalances within ETFs portfolios are CGT free

• Transparency – the investor can see all the stocks in the portfolio

• Highly diversified – typically more stocks in an EFT than a managed fund

• More liquid – investors can trade ETFs on most stock exchanges with very low spreads (managed funds have wider buy/sell spread)

• Market breadth - most globally listed stocks are held by at least one of more ETFs

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