ETF vs Unit Trust

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ETF vs Unit Trust

One may know of how a unit trust works and understand that it is a good vehicle for an investment. ETF shares most of the good things about it but there are other features that make an ETF even better.

Features Unit Trust ETF Stock
Real time trading and pricing (market hours) No Yes Yes
Can be traded real time No Yes Yes
Diversification from one unit Yes Yes No
Intra day trading No Yes Yes
Entry / Exit Load Yes No No
Settlement (buy) Cash T+3 T+3
Listed on exchange No Yes Yes
Acquisition of units Agent or fund manager Through exchange or participating dealer Through exchange
Liquidity Varies Varies Limited
Transparency High High Low
Fees & Expenses Front load fee
Management fee
Trustee fee
Fund expenses
Exit fee
Switching fee		 Management fee
Trustee fee
License fee
Fund Expenses
Brokerage fee		 Brokerage fee