Anonymous
Planning to try out Endowus smart fund. but what to look for when choosing funds? expense rate or anything else?
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For ETFs: total expense ratio, assets under management, physical replication, Ireland UCITS ETFs preferable to U.S. domiciled ones if dividend yield is high
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for unit trusts/mutual funds: avoid them
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Disagree with frankie but each to its own and whatever floats one's boat.
you can look at various ...
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I agree with Frankie, the evidence is there. ETFs and Low cost index funds give higher returns consistently compared to unit trusts/mutual funds.
most unit trusts/mutual funds were popular in the past until alternatives like index funds and ETF/ were created.
Many mutual funds/unit trusts nowadays offer a fund which tracks very similarly to a particular index/ETF. Yes there can always be minor differences but nothing too significant for many.
However these mutual funds and unit trusts tend to charge a high upfront fee and some even, a high expense ratio (Annual Commission)
To me, if I can find an ETF that has very similar products and tracks Whatever market I'm interested in, then it makes no sense for me to pay higher fees for something so similar.
Rightfully mentioned, some things to take note...
expense ratio - comissions
Asset under management - a large Fund gives more confidence of sustainability, liquidity and prospects
Mean tracking difference- how it varies from the benchmark it tracks
spread - if you are buying from the stock exchange
dividend yield
what the fund portfolio holds
prominent investor/corporations that buy into the fund