OpenMarkets Education

Exchange Traded Managed Funds (ETMFs)

An ETMF is a listed, actively managed portfolio of assets with access to live market pricing and the ability to buy and sell the Fund?s units in the secondary market as easily as any other ASX-listed security. A number of fund managers have taken a successful managed fund and issued a listed version of it.

As with any other security, a broker places an order for units in an ETMF and executes at a known price.

Managed funds versus exchange traded managed funds

 Exchange Traded Managed FundsManaged Funds
PricingGenerally priced every 15 seconds, with the price available onlineEach day’s buy and sell price is struck the following business day
AccessibilityOnline transaction and executionInvolves a lengthy application form
TransactingInvestors buy or sell units in the secondary marketPaperwork required for additional investment or withdrawals
Minimum investmentStipulated by your broker – for example, OpenMarkets has a minimum of $500$25,000 is an average figure
SettlementSettlement occurs via CHESS like any other exchange traded security; holdings are recorded on the investor’s HINUnits are issued, and investors receive a standalone transaction statement
SMSFsSimply transact using the Fund’s HINMost fund managers require sight of trust deed, birth record and other paperwork

As with ETFs,?market makers are used to issue and redeem units, and ensure a tight price range around the Fund?s net asset value. ETMFs make investment a level playing field; all investors can access a diversified portfolio of securities in the listed environment, and with a relatively small outlay.

Further Insights

Schroeder’s Exchange Quoted Managed Fund (ASX:GROW)

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Putting the ethics into investment

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