The true cost of buying an ETF

A recent press release from Skandia UK, a fund management and wrap platform provider, claimed that while ETFs tout their low costs, a straight comparison with mutual funds of total expense ratios (TERs) can be misleading. Using its PlatformWatch tool, Skandia compared the costs of three different approaches to building a portfolio. The first approached used the cheapest passive Oeics (open-ended investment parties) available on Skandia's platform; the second used the best-selling funds on Skandia's platform; and the third used ETFs purchased through three different wraps. Skandia foun...