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Investment trust version of an ETF?

  • 01-05-2019 10:45am
    #1
    Registered Users Posts: 138 ✭✭ thewiseowl12


    Given the tax treatment on ETF's (41% exit tax every 8 years), I'm looking to avoid investing passive funds in ETFs as I'd like to invest for the long term.

    Given Investment Trusts are treated like shares (I think)- and apologies if this is a stupid question - are there any passive investment trusts that act similarly to ETFs such as a FTSE tracker? I presume the management fee would be higher but the tax treatment lower over the long run (in addition to other matters such as riskier, supply and demand etc).

    One Trust I've been looking at is Scottish Mortgage Investment Trust, though which of course is an actively managed fund.

    Thanks.


Comments

  • Registered Users Posts: 12,289 ✭✭✭✭ Mad_maxx


    Given the tax treatment on ETF's (41% exit tax every 8 years), I'm looking to avoid investing passive funds in ETFs as I'd like to invest for the long term.

    Given Investment Trusts are treated like shares (I think)- and apologies if this is a stupid question - are there any passive investment trusts that act similarly to ETFs such as a FTSE tracker? I presume the management fee would be higher but the tax treatment lower over the long run (in addition to other matters such as riskier, supply and demand etc).

    One Trust I've been looking at is Scottish Mortgage Investment Trust, though which of course is an actively managed fund.

    Thanks.

    City of London is the best but be careful you pick the right one, couple of similar sounding trusts, one I'm referring to is managed by Job Curtis


  • Registered Users Posts: 226 ✭✭ Shai


    You can open an account with firstrade (US broker) and invest through them in US (non-UCITS) ETFs. No 8 year deemed disposal rules on those.


  • Registered Users Posts: 983 ✭✭✭ Frogdog


    I opened an account with Degiro and bought some passive/index investment trusts.

    A list of all the available investment trusts can be found online. I found some here:

    http://www.morningstar.co.uk/uk/investmenttrusts/default.aspx


  • Registered Users Posts: 46 BishopBrennen


    Frogdog wrote: »
    I opened an account with Degiro and bought some passive/index investment trusts.

    A list of all the available investment trusts can be found online. I found some here:

    http://www.morningstar.co.uk/uk/investmenttrusts/default.aspx

    I thought all UK Investment Trusts had a fund manager and were therefore actively managed?
    Is there such a thing as passive/index Investment Trusts? Are they not ETF's?


  • Registered Users Posts: 14 Green Penguin


    Mid Wyn is a decent option too, a little less racey than Scottish Mortgage.


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  • Registered Users Posts: 983 ✭✭✭ Frogdog


    I thought all UK Investment Trusts had a fund manager and were therefore actively managed?
    Is there such a thing as passive/index Investment Trusts? Are they not ETF's?

    Apologies, you are correct, the ones I bought in 2019 were/are actively managed.


  • Registered Users Posts: 770 ✭✭✭ Rock Paper Scissors


    Where to buy scottish mortgage guys?

    Its not on degiro and T212 are closed to new registrations


  • Registered Users Posts: 46 BishopBrennen


    Where to buy scottish mortgage guys?

    Its not on degiro and T212 are closed to new registrations

    I emailed Degiro and they said they have requested information from these Uk trusts and haven't received said information back from them and so can't guarantee when / if they will be able to list these UK trusts again.

    They said they do want to list them though.

    You can get SMT via moneycube brokers via DAVY but that's more expensive than direct off a platform I'm guessing, but is it getting to the stage where brokers are going to e the only options to access Uk Trusts in general? But maybe DAVY list it to general members as well on their platform? I think I read Interactive Broker(IB)? have it listed on their platform but I think they charge a fee of $10 a month on accounts that have portfolios less than $100,000 in them.

    Is it worth setting up multiple trading platform accounts just to access it though? I think I'll wait a couple months to see if Degiro get to re-list them.


  • Registered Users Posts: 313 ✭✭ Happyhouse22


    Are there any other options on DeGiro that would avoid deemed disposal?

    I can’t find any investment trusts at all.. Is it only shares or ETF’s?


  • Registered Users Posts: 313 ✭✭ Happyhouse22


    Are there any other options on DeGiro that would avoid deemed disposal?

    I can’t find any investment trusts at all.. Is it only shares or ETF’s?

    To answer my own question F&C, Edinburgh worldwide and bankers all available on Degiro.


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  • Registered Users Posts: 43,752 ✭✭✭✭ 6


    Investment Trusts over ETFs every day of the week.

    Tax is straightforward, and at a lower rate.

    Great to some see Investment Trusts pop back up recently on Degiro. Most disappeared after Brexit.


  • Registered Users Posts: 105 ✭✭ HillCloudHop


    FCIT is very diversified and has over 400 holdings. Closest IT I can find to a global ETF.


  • Registered Users Posts: 313 ✭✭ Happyhouse22


    FCIT is very diversified and has over 400 holdings. Closest IT I can find to a global ETF.

    That’s great. Looked good to me but sure how it compared to other investment trusts.


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