ETF or index mutual or robot investor?

Legacy_user

I've read that some people rate Exchange traded funds above index mutuals, but I don't really understand what they are, which is better?

And I've read that robot investors tend to buy both of these, is that a good or pointless option? The examples I read didn't seem to mention specific stocks, but I thought that active management is one area where a robot could in theory actually beat the index

System

I read that ETFs have higher transaction fees but lower management fees, so they're more suited to bigger pots held for longer periods.
Also not sure if ETFs pay a dividend that may affect my tax credits

masonic

It depends on the platform. Some charge trading fees for funds, others don't. All platforms will charge trading fees for ETFs. Management fees are not necessarily lower for ETFs then tracker funds.

Some ETFs pay dividends. It's entirely dependent on what the ETF is tracking.

dunstonh

Robo-advice is a half way house between DIY and advice. Its not really advice but a part automated flow chart outcome to a selection of questions. I have a robo-advice offering but I have little confidence in it's reliability. The accuracy rate of the profiling is meant to be correct in 4 out of 5 cases which is the ballpark expected accuracy. So, we only offer it to smaller investors where the differences are always going to be small.