ETF vs managed fund
An exchange-traded fund (ETF) is a managed fund whose units trade on a stock exchange like a share. A traditional unit-priced managed fund is bought and sold directly with the manager or platform at the fund's daily NAV.
An exchange-traded fund (ETF) is a type of managed fund whose units are listed on a stock exchange (in NZ: NZX). You buy and sell ETF units intra-day through a broker at a market-determined price that closely tracks the fund's underlying net asset value.
A traditional unit-priced managed fund is bought and sold directly with the fund manager or via a platform like InvestNow at the fund's end-of-day NAV. Orders submitted before the daily cut-off are filled at the next NAV strike.
Both can be PIE-structured. NZ's most prominent ETF range is Smartshares (NZX-listed), with funds covering NZ shares, Australian shares, and international markets. Other NZ-listed ETFs come from Vanguard (NZ-domiciled wrappers) and various managers.
Cross-reference: ManagedFundsNZ covers managed funds and listed ETFs available to NZ retail investors; ETFs.co.nz is the sister site dedicated to NZX-listed ETF data with live NZX pricing.
Primary sources
Related terms
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managed-fund
Managed fund
A pooled investment vehicle where many investors' money is combined and managed collectively against a stated investment objective by a professional fund manager.
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PIE fund · PIE
Portfolio Investment Entity (PIE)
A tax-efficient New Zealand fund structure where investor tax is capped at the investor's Prescribed Investor Rate (PIR), with a maximum of 28%.