SATRIX – ETF or UT?

I have written about the merits of using the unit trust versions of the SATRIX Funds previously but a recent example once again highlighted the advantage of the unit trust over the ETF.

Apart from the fact that the UT is cheaper than the ETF (the underlying funds are the same price but there is no “platform fee” on the UT) it is also simpler and quicker to get your money out of the unit trust than the ETF. To redeem a unit trust typically takes 48 hours from the time the forms are submitted to the time the funds are in your bank account (assuming all documentation is in order etc). However, with the ETF, they take 7 working days to pay out your money…this is far too long – where does the money sit in the interim and who is earning interest on the proceeds?

For my money – the Unit trust version is a better way to invest in SATRIX – every time!

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