The short answer is because we can offer the same or better market exposures with investment funds for a lower overall cost for our customers. An ETF or an exchange-traded fund is similar to an investment fund but it is not traded directly via the stock exchange. This is the only difference between investment funds and ETFs. Advinans’ objective is to minimise the cost based on the market exposure we are seeking for our customers and currently we are better able to do so through investment funds.


In more detail:

  1. Advinans’ investment fund fees are in line with, or are lower than the equivalent market exposures through ETFs.
  2. Several important exposures we are seeking are not available via ETFs (primarily on the fixed income side).
  3. In addition to the cost of an ETF you also must take into account ”the spread”, i.e. the difference between the buying and selling rate that is paid by the customer.
  4. We believe that it is easier and more transparent that all customers in the event of withdrawals/payouts get the final value of the fund according to the investment fund companies rather than us buying ETF during the day with an average price that may deviate greatly from the closing rate.
  5. Advinans saves on costs for trade and storage, which enable us to keep our management costs low for our customers.