Active ETFs such as PIXX and
PAXX, have a unit trust structure and are open-ended, which means that new units are issued and existing units are cancelled based on investor demand and capital flows.
A typical Australian exchange traded managed fund (ETF) also has a trust structure and is open-ended but is not actively managed and instead tracks a market index.
Listed investment companies (LICs) are closed-ended investment vehicles that are established in the form of a company. They do not regularly issue new shares or cancel existing shares and so their cash flows and investment decisions are not impacted by daily fund inflows and outflows (as is the case for managed funds). However, the share price of a LIC can (and often does) differ from the underlying value of the LIC’s portfolio of investments.
You may use our Product Comparison Tool to view specific differences between our products, visit:
https://www.platinum.com.au/product-comparison