Looking at the differences in how to place orders
Both “investment trusts” and “ETFs” are products that manage multiple assets together. In fact, an ETF is a type of investment trust, but the term ETF generally refers to investment trusts listed on a stock exchange. Because the way orders are placed and prices are determined differs, knowing how they work makes it easier to choose when considering regular investing.
Differences in how prices are determined
ETFs are traded on an exchange just like stocks. The market price changes during trading hours, and you can choose order methods such as limit or market orders. On the other hand, for general unlisted investment trusts, the purchase price is not determined at the time of the order and is usually traded based on that day’s net asset value.Japan Exchange Group “Differences between ETFs and other investment trusts” (Confirmation date: October 7, 2026)
With ETFs, where prices are visible in real-time, it is easier to specify the purchase price, but you need to decide the timing of the order yourself. Also, because the market price moves based on supply and demand, it may not match the net asset value calculated from the assets held by the ETF. If there are many buyers, the market price may exceed the net asset value, and if there are many sellers, it may fall below it.
With unlisted investment trusts, you might be confused by the fact that the price is unknown at the time of the order. However, if you use a regular investment setting, some products and financial institutions allow you to automate each order. Since support status and minimum purchase amounts vary by product and financial institution, check in advance.
Also look at the handling service for ease of regular investing
If you want to automatically buy a fixed amount every month, you should check not only the product itself but also the regular investment service of the financial institution where you open your account. The range of settings for regular investment frequency, purchase date, minimum amount, and withdrawal method may vary by financial institution, even for the same investment trust.
Because ETFs are traded on an exchange, you can place orders by specifying a price just like regular stocks. Some financial institutions support automatic regular investing, but the terms of use and order methods are not uniform. Do not assume that “you cannot do regular investing with ETFs” or “you can always automate with investment trusts”; it is certain to check with the account you plan to use.
Compare costs by “product”
For investment trusts, in addition to the management fee (trust fee) incurred while holding, there may be fees set at the time of purchase or redemption. For ETFs, in addition to the costs incurred while holding, trading commissions and the spread between buy and sell prices may become costs. The mechanism and amount of fees differ by product and financial institution, so it cannot be said that ETFs are always cheaper or that investment trusts are always more expensive.
If you intend to hold for a long time, do not judge only by the purchase fee, but also check the costs incurred while holding. You can check the fee items in the delivery prospectus and investment report for investment trusts, and in materials from the management company or exchange for ETFs. Even products that track similar indices may have different costs and management policies.
If using NISA, check if it is an eligible product
Not all investment trusts or ETFs are eligible for purchase through NISA. The Tsumitate Investment Quota has eligible products that meet the requirements set by the Financial Services Agency, and there are also products that are not eligible for the Growth Investment Quota. Check which quota you can use to purchase the product you want on the financial institution’s product page or the Financial Services Agency’s list of eligible products.Financial Services Agency “Tsumitate Investment Quota Eligible Products” (Confirmation date: October 7, 2026)
Think about what suits you based on “how you use it”
If you want to continue automatic regular investing with a small amount, comparing the ease of regular investment settings and the minimum purchase amount will make it easier to narrow down your candidates. If you want to adjust your orders while watching the price, the ETF trading method might suit you. However, both have the possibility of losing principal depending on the price movement of the investment target. The size of the loss is not determined solely by the form of the product.
Before choosing, try checking in order what the product invests in, how much the costs are, which NISA quota it can be bought in, and whether it is easy to continue ordering. What you are comparing is not just the name or popularity, but whether it fits your investment period and household budget.
Today’s key points
・ETFs are investment trusts listed on an exchange and are traded at market prices during trading hours. ・Check regular investment functions and costs for each product and financial institution. ・Check if it is an eligible product for NISA along with the quota you will use.