Difference manged Fond and ETF

I want to give s short overview about Advantages from ETF´s


ETF:

Cost: approximately 02-0,8%

Diversification: for example MSCI WORLD ETF 1600 company's in one ETF

Saving plan: you can easily install a saving plan you can start with 25€
Fee: A lot of the saving plans are free from a fee

Huge selection with different sectors: you can combine different Sectors very easy with ETF and lower the risk instead of buying single company´s shares

Growth: It depends on the ETF when you buy an index ETF its´approximately the same growth and over the years nothing beats the index

Tax advantages: You can buy synthetic ETF instead of replicated here dividends are different taxed (in Germany)

Risk: It depends on the ETF but by an Index ETF you have a huge diversification but also the MSCI World Looses up to 50% in the worst crisis.


Managed Fond:

Cost: approximately 2,5-6%

Fee: approximately 1-3%

Growth: nothing beats the index over the time some years could be better by a managed fond but you always have Fee and cost up to 7-9% which goes to the provider

Risk: It depends on the Fond Manager and on the number/diversification from the shares which are in this Managed Fond its possible that you can Loose up to 90%

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