Index funds

Like passively managed ETFs, index funds track an index as closely and cost-effectively as possible. The most important difference between these two product types is that ETFs are listed on stock exchanges and can be bought and sold continuously during trading hours. Index funds, on the other hand, are not traded on the stock exchange. As with active investment funds, they can only be bought and sold once a day through the fund provider.

One advantage of index funds is that there are withholding tax-free share classes for retirement provision, which leads to an increase in risk-free returns. Due to this tax advantage, we at True Wealth use index funds in addition to ETFs for retirement provision.