I have been looking at the vanguard 'Australian shares' Index Fund and ETF, both track the same index and use the same underlying strategy (I believe)
I was wondering what the tax differences were between the two methods? If they are both using the same strategy, is there any difference at all?
Why are the fees so much less for the ETF equivalent?
I understand how fees are taken with the Retail fund, but how exactly are they taken with an ETF? I understand they could subtract them from your dividend, but what if hypothetically there was no dividend to subtract it from? how would they claim their fees? take shares off of you?
Anyone have any general opinions on which is the best strategy? Is it worth the extra fees for more regular dollar cost averaging?