facebookWhat's the difference between Lion Global US 500 or Global Stock Index Fund vs SP500 ETF or world ETF like IWDA etc? - Seedly

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Anonymous

28 Nov 2021

General Investing

What's the difference between Lion Global US 500 or Global Stock Index Fund vs SP500 ETF or world ETF like IWDA etc?

Can someone explain to me? Or are they somehow similar?

Discussion (2)

What are your thoughts?

Tan Choong Hwee

Tan Choong Hwee

29 Nov 2021

Level 14·Investor/Trader at Home

LG Infinity US500/Global Stock Index Fund and S&P500/World ETF track similar indices and therefore similar performance curves, but there are differences between unit trust and ETF.

Unit Trust:

  • Available from distributors
  • Unit trust TER tends to be higher
  • Unit trust price is based on single NAV price
  • Can own fractional units of unit trust

ETF:

  • Traded on stock exchanges
  • In addition to TER, ETFs have additional brokerage fees (commissions, custody fees, dividend handling fees, etc.)
  • ETF price is subject to supply and demand market forces
  • Usually have to own one full lot size of ETFs (unless the brokerage supports fractional shares)

Both trying to copy 99% of the index holding, return are almost similar, but Infinity is a fund not etf, so abit higher expense ratio~

You can trade etf freely in the market, but for infinity if i’m not wrong, you can only do it thru subscription base

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