| |
Exchange Traded Funds(ETFs) |
Traditional Mutual Funds |
| Pricing |
Throughout the trading day |
Once per day using closing prices for fund net asset value |
| Short selling |
Yes – investors can hold long or short positions |
No – long positions only |
| Limit and Stop Orders |
Yes – investors can request their own price to execute any trade, however, there are no execution guarantees |
No – the only price available is the net asset value (NAV) per unit |
| Good-til Orders |
Yes – at Disnat and Disnat Direct, investors can leave an order open for
up to 30 days |
No – any order entered will be traded on that day (or the next business day, if markets are closed). |
| Cost (MERs) |
Low – MERs are typically under 1% |
Varies – MERs are typically between 1.5% and 3% |
| Portfolio turnover |
Very low (leading to lower taxable distributions) |
Varies according to manager style (high turnover leads to high taxable distributions) |
| Marginable (ability to leverage) |
Yes – standard security margin rules apply |
Yes – maximum loan value of 50% |
| Disclosure of portfolio holdings |
High – holdings disclosed daily for most ETFs |
Low – holdings typically disclosed semi-annually |
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