Sameh Youssef;276323 wrote:ETFs are usually cheaper than mutual funds whether they are unit trust or investment trust. While an excellent manager of a mutual may beat the index which is tracked by an ETF, the long term difference may not be that big because the manager usually has his/her own investment style, for example growth or value, which comes and goes over the years while the index performance benefits from both styles as they rise one at a time. ETFs provide access to thematic areas of the matket, for example electrical cars, battery, hydrogen etc while there is no fund that is dedicated entirely to any of these themes.
I think Ramondo's question related not to actively managed mutual funds, but to index-tracking funds. For example, they have both a
FTSE 100 unit trust and a
FTSE 100 ETF.@Ramondo, I think NigelV's point about the ETF prices is important. If you're only using the Vanguard platform, as the same platform fee and fee cap applies, I think the unit trust option is better because you get units for each £ you invest without having to worry about excess cash left around.