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Comparisonbetween ETFs, UT and Stocks
| ETFs | Unit Trusts (UTs) | Stocks | |
|---|---|---|---|
| Listed on exchange | Yes | No Bought/redeemed via platform/fund | Yes |
| Pricing & trading | Intraday at market price | Once daily at end-of-day NAV Forward pricing | Intraday at market price |
| Management style & objective | Passive; track an index (Not to beat it) | Actively managed by dedicated fund manager; aim to outperform its benchmark index | Actively managed by investor to track individual stock's developments and performance |
| Holdings disclosure | Daily | Monthly or quarterly | Depend on exchange regulation and company transparency policy |
| Costs (Typical) | Brokerage fee + expense ratio (often < 1%) exchange costs | Management fee/expense ratio; sales charge varies by platform FSM Global: 0% sales charge | Brokerage fee |
| Liquidity | Exchange volume liquidity (varies by ETF) | Daily dealing; not a concern as fund manager creates or redeems units | Exchange volume liquidity (varies by stock) |
| Diversification | Yes Basket of securities | Yes Pooled portfolio | No Single company exposure |
| Volatility | Lower as diversification from a basket of stocks cushions volatility from individual price swings | Lower as diversification from a basket of stocks cushions volatility from individual price swings | Typically higher; certain events can trigger major share price swings |
| Counterparty Risk | Cash ETFs: No Synthetic ETFs: Yes | Generally no at fund level | No Issue/market risk instead |









