Are Unit Trusts more expensive than ETFs? I just realised I actually bought the STI ETF unit trust rather than the normal ETF? Is there a difference?

Unit trust usually have a higher expense ratio and maybe a sales charge. ETFs usually passive and lower expense ratio. Ultimately, you will want a lower TER as it does eat into your returns esp over the long run

Some differences between ETF and Unit Trust

1. you can find out all components in the ETF. most times, you only know the top 10 components in Unit Trust.

2. ETF can be bought and sold on stock exchange, like stocks, at the current price. Unit Trust are cannot be bought/sold on stock exchange. They can only be bought/sold after market close, need today closing price before transacting.

3. ETF are more liquid than Unit Trust. easier to buy and sell.

4. ETF, those that follow major indices, then to be passively managed. lower management fees, usually under 1%. Unit Trust are mostly actively managed, their fees can go up to 5%.

5. there is more information readily available, when researching on ETF.

if you intend to buy unit trusts, you can look at POEMS or FSM. they offer 0% sales charges.