FAQs
A client will open an InvestSMART PMA and can then choose between the various InvestSMART Diversified Portfolios. An account can hold one or more models but can only hold one diversified portfolio. The management fee is charged at the account level, not per portfolio.
Is an exchange fund the same as an ETF? ›
Exchange funds provide investors with an easy way to diversify their holdings while deferring taxes from capital gains. Exchange funds should not be confused with exchange traded funds (ETFs), which are mutual fund-like securities that trade on stock exchanges.
Is ETF investing smart? ›
ETFs can be a great investment for long-term investors and those with shorter-term time horizons. They can be especially valuable to beginning investors. That's because they won't require the time, effort, and experience needed to research individual stocks.
What is the difference between an ETF and an exchange traded fund? ›
ETFs have lower expense ratios. Mutual funds have higher management fees. ETFs are passively managed, mirroring a particular index, making them less risky and transparent. Mutual funds are actively managed, with fund managers investing based on analysis and market outlook.
What is the minimum investment in InvestSMART? ›
Each portfolio requires a $10,000 minimum balance, so $5,000 would be withdrawn from the InvestSMART Conservative Portfolio and $1,000 from the InvestSMART Interest Income Portfolio. This does not include a Fundlater account, where the minimum investment amount provided by the investor is $4,000.
Who owns InvestSMART? ›
InvestSMART is currently owned by Ron Hodge and Nigel Poole, who co-founded the company in 1999 as FloatNews. After renaming it to InvestSMART in 2001, they sold the business to Fairfax Media in 2007, but the pair took back ownership in 2013.
What is the downside of exchange funds? ›
The Downsides of Exchange Funds
If you want to sell the equity before then you may face fees and additional taxes — you would typically receive the lesser of the value of the original stock or the fund shares, and you would lose the tax benefits while still being on the hook for applicable fund fees.
What is the 7 year rule for exchange funds? ›
Although you achieve diversification as soon as you put your stocks into an exchange fund, the current tax rules mandate that each investor remains in the fund for seven years before they can withdraw a tax-deferred basket of stocks from the fund.
Do I pay capital gains if I exchange funds? ›
Exchange funds typically reinvest capital gains and dividends. A taxable event occurs once you redeem your partnership shares in the fund, with your cost basis of the fund being the cost basis of the concentrated stock that you handed over (the amount you paid to purchase the stock originally).
What is the downside of ETFs? ›
For instance, some ETFs may come with fees, others might stray from the value of the underlying asset, ETFs are not always optimized for taxes, and of course — like any investment — ETFs also come with risk.
Hold ETFs throughout your working life. Hold ETFs as long as you can, give compound interest time to work for you. Sell ETFs to fund your retirement. Don't sell ETFs during a market crash.
Is it OK to just invest in ETFs? ›
ETFs can be safe investments if used correctly, offering diversification and flexibility. Indexed ETFs, tracking specific indexes like the S&P 500, are generally safe and tend to gain value over time. Leveraged ETFs can be used to amplify returns, but they can be riskier due to increased volatility.
Can you withdraw money from ETFs? ›
In order to withdraw from an exchange traded fund, you need to give your online broker or ETF platform an instruction to sell. ETFs offer guaranteed liquidity – you don't have to wait for a buyer or a seller.
Why buy an ETF instead of a mutual fund? ›
ETFs have several advantages for investors considering this vehicle. The 4 most prominent advantages are trading flexibility, portfolio diversification and risk management, lower costs versus like mutual funds, and potential tax benefits.
Is it better to buy stocks or ETF? ›
Stock-picking offers an advantage over exchange-traded funds (ETFs) when there is a wide dispersion of returns from the mean. Exchange-traded funds (ETFs) offer advantages over stocks when the return from stocks in the sector has a narrow dispersion around the mean.
What is InvestSMART hybrid income? ›
What is the InvestSMART Hybrid Income Portfolio? The InvestSMART Hybrid Income Portfolio is a professionally managed portfolio that gives you access to a hand-picked selection of 5 to 15 hybrids to diversify your income stream, with the added benefit of minimised portfolio risk.
Is investing in managed funds a good idea? ›
Access to a broad range of investments you otherwise may not have access to. By pooling your money with other investors, you also gain access to a variety of investments that you may have not been able to invest in as an individual. You can gain access to markets and strategies that rely on larger scale buying power.
How does Investr app work? ›
The platform gives you access stocks, ETFs, American depositary receipts (ADRs) and fractional share investing. It also features virtual stock trading games and an investing fantasy league. Let's compare the advantages and disadvantages to determine whether this app is a good fit for your investment needs.
Is InvestSMART free? ›
FREE Membership Benefits
Australia's best free Portfolio Manager. A simple way to all your track your dividends and holdings in one easy place. We recognise over the long-term, no one asset class is guaranteed to deliver consistent returns.
