This “in-kind” exchange of underlying portfolio for units is a unique feature of ETFs. How do BeES compare with traditional open-ended index funds?
Short-term investor:For the short-term investors, costs in BeES will be in the form of brokerage and bid-offer spread. The biggest advantage of BeES is that short-term investor can take advantage of intra-day price movements, which is not possible with traditional open-ended index funds. Long-term investor:Long-term investors benefit due to the lower overall costs of BeES as compared to traditional open-ended index funds.
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