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Investment trust version of an ETF?

  • 01-05-2019 10:45am
    #1
    thewiseowl12
    Registered Users Posts: 169 ✭✭


    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

  • #2
    Mad_maxx
    Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx


    thewiseowl12 wrote: »
    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


  • #3
    Shai
    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.


  • #4
    Frogdog
    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


  • #5
    BishopBrennen
    Registered Users Posts: 56 ✭✭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?


  • #6
    Green Penguin
    Registered Users Posts: 19 ✭Green Penguin


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


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  • #7
    Frogdog
    Registered Users Posts: 983 ✭✭✭Frogdog


    BishopBrennen wrote: »
    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.


  • #8
    Rock Paper Scissors
    Registered Users Posts: 811 ✭✭✭Rock Paper Scissors


    Where to buy scottish mortgage guys?

    Its not on degiro and T212 are closed to new registrations


  • #9
    BishopBrennen
    Registered Users Posts: 56 ✭✭BishopBrennen


    Rock Paper Scissors wrote: »
    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.


  • #10
    Happyhouse22
    Registered Users Posts: 453 ✭✭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?


  • #11
    Happyhouse22
    Registered Users Posts: 453 ✭✭Happyhouse22


    Happyhouse22 wrote: »
    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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  • #12
    Bobeagleburger
    Registered Users Posts: 45,260 ✭✭✭✭Bobeagleburger


    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.


  • #13
    HillCloudHop
    Registered Users Posts: 105 ✭✭HillCloudHop


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


  • #14
    Happyhouse22
    Registered Users Posts: 453 ✭✭Happyhouse22


    HillCloudHop wrote: »
    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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