EFTs/Quinn Freeway - Same Thing?

[Happy Girl]

Basically are EFTs the same thing as Quinn Freeway the only difference being that Quinn are the "middle man" and look after the admin end with regard to their product?

 

[CCOVICH]

Have you read the ISEQ ETF FAQ?

 

[Gulliver]

As I understand it, Quinns Celtic Freeway is a managed fund in which the managers have some flexibility, and you are to some extent dependent on their skill and judgement. They place funds in shares of 20 "of the largest" companies on the Irish Stock Exchg.

The ISEQ is much more confining and formula-based. The funds are placed in the shares of the 20 largest companies in direct proportion to their market cap, and the proportion is readjusted regularly to reflect changes. No skill and judgement is permitted.

Could somebody confirm if the above is reasonably accurate??

 

[Happy Girl]

As I understand it, Quinns Celtic Freeway is a managed fund in which the managers have some flexibility, and you are to some extent dependent on their skill and judgement. They place funds in shares of 20 "of the largest" companies on the Irish Stock Exchg.

The ISEQ is much more confining and formula-based. The funds are placed in the shares of the 20 largest companies in direct proportion to their market cap, and the proportion is readjusted regularly to reflect changes. No skill and judgement is permitted.

Could somebody confirm if the above is reasonably accurate??

Gulliver I understand that the reason Quinns charges are lower that other providers is that the funds are not managed. Basically you pick your fund and sit and wait and are allowed two fund switches free of charge in year.

 

[ClubMan]

As I understand it, Quinns Celtic Freeway is a managed fund in which the managers have some flexibility

No - it's an index tracker and is not actively managed.

and you are to some extent dependent on their skill and judgement.

The main "risk" (that it does not replicate the performance of the index being tracked) is that whatever rebalancing process/mechanism they use doesn't track the underlying indices as accurately as possible. I don't really have any insight into this process/mechanism.

 

[Happy Girl]

Again begs the question what is the main difference between Quinn Celtic Freeway and EFTs except for the fact Quinn look after admin end of things.

 

[Gulliver]

Folks

Many of the Quinn Freeway funds are trackers and are marketed as such.

The Celtic Freeway Fund is different. It makes no mention of the word "Track" or "Tracker". It specifically says in relation to the ISEQ "The Celtic Freeway fund does not aim to track this index". It does not mention or track the ISEQ20 index produced by the Stock Exchange. And it does not commit to anything but investing in "20 of the largest companies". Why the vagueness? Who selects the 20? How? It does appear to offer some flexibility to the managers.

Don't get me wrong - I'm a fan of the Quinn approach and it's record of performance.

Also, Happy Girl, the charges are higher than the ISEQ20ETF!

 

[CCOVICH]

Again begs the question what is the main difference between Quinn Celtic Freeway and EFTs except for the fact Quinn look after admin end of things.

Receipt of dividends?
Charges?

The FAQ and previous threads address the differences between Quinn Life's Celtic Freeway and the ISEQ ETF.

 

[dublinman]

I think is fair to say that they are very similar, but the mgt charge is lower with the ISE ETF, and presumably you do not pay tax on the first 1,270 or so of any gain as this is (roughly) your annual capital gains tax exemption as this is a share gain.

On the other hand, with the ETF you have the cost of buying and selling it like other shares, the cost of holding the shares in a crest account and more paperwork when it comes to tax.

 

[CCOVICH]

I think is fair to say that they are very similar, but the mgt charge is lower with the ISE ETF, and presumably you do not pay tax on the first 1,270 or so of any gain as this is (roughly) your annual capital gains tax exemption as this is a share gain.

No-ETFs are not subject to CGT-they are taxed on the same basis as unit linked funds, so that's 23%, and no annual exemption (as detailed in the FAQ linked to earlier).

As for charges, you need to look at your investment timeframe.