Do you prefer investment trusts or ETFs?


Do you prefer ITs or ETFs, and why?

Me personally I have both but have more ETFs due to lower OCR.


I too have both.

My ETFs form the growth/passive part of my portfolio (although some of the ETFs do pay dividends, it’s not why I bought them), the ITs form the income/active part.

The ETF part is double in size, due to the fact that when I come to draw down, I will be selling them off, whereas I won’t be selling the ITs, will just collect the income.

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I also hold both, with ETFs making up the core of my portfolio and some ITs as satellites. The main reasons I like trusts are the chance to buy stocks at a discount to NAV and gearing which should amplify long-term returns.

I try not to get too hung up on cost. SMT may be twice as expensive as some trackers, for example, but it’s 10-year return is about 600% vs 240%ish for a comparative index, which more than makes up for it.


Both. As mentioned above ETFs are the fundamental Core of my portfolio. ITs let you access different opportunities for satellite positions. Infrastructure, Small Caps, Private Equity, Frontier/Emerging Markets, Capital Preservation and other niche portfolios