OEICs v ETFs v ITs

JohnnyJet

Please can someone explain the differences and advantages of using these different types of investment.

HarryD

That's quite a question and any answer would be a matter of both fact and opinion.

Maybe you could read up on the factual differences then come back and ask some more specific questions?

ChesterDog

Bowlhead will do it justice...

Mistermeaner

ChesterDog wrote: »

Bowlhead will do it justice...

Thats what im waiting for. I can hear him typing.

dunstonh

How many pages of text do you actually want? Its a very long answer. Probably unfair for someone to write it all out when you could look it up yourself.

Ryan_Futuristics

OEICs - Phil Collins/Genesis

ETFs - Devo/Talking Heads

ITs - Etta James/Nancy Wilson

bowlhead99

ChesterDog wrote: »

Bowlhead will do it justice...

:hello:

JohnnyJet wrote: »

Please can someone explain the differences and advantages of using these different types of investment.

.... of using these different types of investment to achieve what? To hold what type of underlying asset, as part of what sort of strategy?

The bottom line is that each of the types of vehicle has a set of characteristics which may be positive or negative for the type of strategy that you might like to adopt. The characteristics will have an impact on the cost structure to hold or to buy or sell, the suitability of the vehicle for the asset classes held, the typical complexity of the fund in the eyes of the investor, potential risks and rewards for the manager and so on.

In order to explain what sort of characteristics I mean, and why each of them might be good or bad, in what conditions, for what assets, and what investor strategy, requires some context. To give context to every potential pro or con, by way of practical examples which would make sense to a wide range of readers with a wide range of existing knowledge of investing concepts, requires a lot of words.

So, here goes...




...just kidding, I need a night off. I refer you to the good answer from HarryD in post #2

JohnnyJet

Point taken. Thanks for all the input, I will now go away and do some research and come back when I have a more focused question.

badger09

bowlhead99 wrote: »

:hello:



In order to explain ..............................., requires a lot of words.

So, here goes...




...just kidding, I need a night off. I refer you to the good answer from HarryD in post #2

Tease

jamesd

OEIC's: funds, often managed. The most common place to find active managed funds.

ETFs: relatively limited selection, usually not active managed, or not much. Good for trading.

ETs: OEICs but with leverage and the easy tradeability at any time the markets are open of ETFs. But discounts to net asset value or premiums are the norm, unlike OEICs.

When you understand what I just wrote you'll have made good progress.

JohnnyJet

jamesd wrote: »

OEIC's: funds, often managed. The most common place to find active managed funds.

ETFs: relatively limited selection, usually not active managed, or not much. Good for trading.

ETs: OEICs but with leverage and the easy tradeability at any time the markets are open of ETFs. But discounts to net asset value or premiums are the norm, unlike OEICs.

When you understand what I just wrote you'll have made good progress.

I'm sort of ok with what you have written, just trying to work out if other options would be better than what I am doing at the moment. I have generally always held active funds and have more recently rebalanced and have a Vanguard fund and a Blackrock tracker fund. A previous post by Bowlhead made me completely rethink my investments, which I am grateful for.

I always try to buy and hold for the long term and aim to retire in 12-20 years. The 12 years date is calculated based on when I think the earliest date I will be able to retire is. I have used a 3% increase in fund value per annum with today's values as a guide. This is probably too cautious but due to my amateur investment level I think this is the right thing to do, at least for now.

These funds will be used to fund the gap between retirement and when I am able to claim my pensions (state and LGPS). I am currently paying a combined total of over 1% annual charges on most funds and would like to reduce this.

I will continue to read up on these options, but if anyone has any suggestions in the mean time then I would love to hear them.