An ETF is a basket of securities, shares of which are sold on an exchange. They combine features and potential benefits similar to those of stocks, mutual funds, or bonds. Like individual stocks, ETF shares are traded throughout the day at prices that change based on supply and demand. Like index mutual funds, ETFs offer a low-cost way to achieve diversification. 

ETF shares are the “units” into which an ETF is divided; each share represents an ownership stake in the underlying portfolio of assets. The price of an ETF share fluctuates throughout the trading day as buyers and sellers enter into transactions on exchanges. When you buy shares, your order may be filled at any price within a trading range established by market supply and demand for that day; when you sell shares, your order may be filled at any price within that range.

A Unit Trust is a collection of investments (such as shares, bonds, cash or property) bought with money from a large number of investors. The investment portfolio is managed on your behalf by professional fund managers.

Unlike investing in a share, you don’t own any part of the company. Instead you own units representing part of the total value of the fund. The number of units you own will depend on how much money you have invested and the value of each unit when you buy them.

Some unit trusts are called Open Ended Investment Companies. This means that there are no restrictions on the amount that investors can contribute and withdraw, making them very flexible around both contributions and withdrawals.

Real estate investment trusts, or REITs, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

Real estate has long been considered one of the best ways to diversify your portfolio. For years, that meant buying properties directly or investing in other people’s businesses through private placements — purchasing shares in non-publicly traded real estate investment trusts (REITs) or other real estate businesses. But these options have drawbacks for many investors: Buying property is expensive and difficult for many individuals, and private placements are risky and illiquid.

This is where publicly traded REITs come in. These investments can be bought and sold just like stocks but they offer diversification into real estate, which historically has moved differently than stocks and bonds over the business cycle.