- A passive index fund provides exposure to a defined market by tracking an index that represents the underlying market.
- The only difference between unit trusts and ETFs is their listing status, which has a significant impact on liquidity and pricing. When bid-ask spreads are high for ETFs, the trading costs can sometimes exceed the expense ratio.
- Unit trusts are not priced based on bid-ask spreads — they trade once a day, and at a specific net asset value, and accounts for the trading costs associated with the index fund on that specific day.
- Endowus has worked strategically with Amundi to bring a new series of passive index funds that are priced at the lowest cost into Singapore.
What is a Passive Index Fund?
A passive index fund provides exposure to a defined market by tracking an index that represents the underlying market. For example, investors can get exposure to the broad global equities market by...
