Why Funds Of ETFs?
Why Have Funds Based On ETFs?
ETFs offer our fund managers:
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Instant stock specific diversification
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Real-time execution
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Low Total Expense Ratios (TERs)
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Low frictional (dealing) costs
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Transparency of holdings
The last point is a crucial factor in determining our exposure to ETFs, since many of our software driven processes require visability of a fund's underlying holdings. The low costs associated to trading ETFs suit active asset allocation and the low TERs help to keep our own TERs lower than if we used solely conventional active managed funds.
