When it comes to investing, the landscape is filled with choice—but that doesn’t mean investors have to pick a side. Whether you’re exploring exchange-traded funds (ETFs) or traditional unit trusts, the real question is: which approach aligns best with your investment goals, risk appetite, and timeline?
While much is often made of the debate between passive and active investing, the reality is more nuanced. ETFs are a structure, not a style. Some follow passive, index-based strategies. Others—like one of Reitway Global’s own funds—are actively managed to pursue specific outcomes.
Traditional unit trusts also vary widely in philosophy, cost, and focus. Understanding the key differences between these investment types—how they’re built, how they’re priced, and how they perform under different conditions—can help South African investors make more informed, long-term decisions.
Reitway Global offers both passive and active solutions through ETFs—because not every investor is looking for the same thing. And that’s exactly the point.
Choosing an investment vehicle isn’t just about returns—it’s about understanding the mechanics behind how your money is managed. Two of the most widely used options today are ETFs and traditional unit trusts, each with distinct characteristics in terms of strategy, structure, and investor experience.
ETFs, or exchange-traded funds, are investment products that trade on stock exchanges, just like shares. While they’re often associated with passive investing—tracking a specific index or market—they can also be actively managed. The key difference lies in their structure: real-time pricing, transparent holdings, and intraday liquidity.
At Reitway Global, for example, our ETF range includes both passive strategies that track property-related indices and an actively managed ETF designed to respond to market conditions while still offering the flexibility and transparency of an ETF.
Whether passive or active, the ETF model allows investors to see exactly what they hold and how it’s performing throughout the day—providing a level of clarity that supports confident, informed decision-making.
Traditional funds—often called unit trusts—typically follow an active approach, with portfolio managers making ongoing decisions about what to buy or sell based on research, forecasts, and market insights. These funds are priced once daily, with trades executed through investment platforms or asset managers. While this structure operates differently from ETFs, it remains a well-established and widely trusted method for long-term investing.
Beyond investment strategy, the way a product is structured can have a real impact on how it fits into an investor’s portfolio. Transparency, accessibility, and the level of control investors have over their holdings can vary significantly between ETFs and traditional unit trusts.
ETFs are listed on stock exchanges and priced continuously throughout the trading day. Investors can monitor performance in real time, view the underlying holdings, and transact at any point during market hours. This structure supports transparency and flexibility, especially for investors who value ongoing visibility. By contrast, traditional unit trusts are priced once daily—usually at the market close. Investors buy and sell through investment platforms, and while reporting is regular and thorough, the process offers less real-time insight. For many long-term investors, this remains perfectly adequate, particularly where short-term price movements are not a priority.
The exchange-traded nature of ETFs gives investors more tactical flexibility. You can place trades instantly, use stop-loss or limit orders, and adjust your position throughout the day in response to market developments. Traditional unit trusts offer a more structured experience. While trades are processed daily rather than intraday, they may suit investors who prefer a more hands-off approach or who are working with an advisor to manage their portfolio over a longer horizon. Neither structure is inherently better—it simply depends on the level of engagement, control, and access an investor wants.
Fees are a central consideration for most investors, but they’re often misunderstood. While it's true that passively managed ETFs tend to have lower headline fees than many actively managed funds, cost alone doesn’t tell the full story. What really matters is how the total cost aligns with the value and outcome you’re seeking.
Passive ETFs generally follow a set index, which reduces the need for ongoing decision-making and typically results in lower management fees. Traditional unit trusts, on the other hand, often involve deeper research, portfolio oversight, and active security selection—reflected in a higher fee structure.
However, that doesn’t mean ETFs are always cheaper or better. Reitway Global, for example, offers both passive and actively managed ETFs, each with pricing appropriate to the strategy behind it. The cost of a fund should be considered in context—alongside transparency, performance objectives, and the investment strategy being executed.
Instead of focusing solely on percentages, it’s more useful to consider:
Fees matter—but they’re one piece of a much bigger picture.
One of the longest-running conversations in investing is whether active or passive strategies deliver better results. But for many investors, this debate misses the point. The better question is: Which strategy fits your objectives, your risk appetite, and your expectations for how your money is managed?
Passive ETFs are designed to mirror the performance of a specific index. They don’t try to beat the market—they aim to track it consistently, with a rules-based approach that removes manager discretion. For many investors, that reliability and transparency are exactly what they’re looking for.
But not all ETFs are passive. Some—like Reitway Global’s actively managed ETF—take a more dynamic approach, blending the ETF structure with active decision-making to capture specific opportunities or manage risk more proactively.
Traditional unit trusts, and actively managed ETFs alike, follow a more discretionary approach. These funds may seek to outperform the market, allocate more tactically, or focus on under-researched opportunities. For investors who prefer a more tailored or responsive strategy, that can be appealing—especially when it’s built on deep domain expertise.
At Reitway Global, we don’t approach this as a binary choice. We believe in fit-for-purpose investment strategies, which is why our range includes both passive and actively managed ETFs—each with a clearly defined role.
The term “ETF” covers a wide range of strategies, structures, and exposures. Some track broad indices passively. Others are actively managed. Some prioritise income, while others focus on long-term growth. That’s why choosing an ETF isn’t just about the name—it’s about finding one that fits your objectives.
Before selecting an ETF, it helps to consider:
There’s no universal right answer. The key is to understand what you want your investments to achieve—and choose tools that help get you there.
At Reitway Global, our ETF lineup has been purposefully constructed to offer different entry points into global listed property. That includes both passively managed ETFs that track specific benchmarks, and an actively managed ETF designed to respond to market shifts with greater flexibility.
This diversity allows investors to build exposure in a way that suits their individual goals, rather than forcing a one-size-fits-all approach.
At Reitway Global, we don’t believe in off-the-shelf solutions. Investors aren’t all the same—and neither are their goals, timelines, or appetite for risk. That’s why our range of REIT ETFs is designed around a simple principle: every fund must have a clear purpose and deliver a specific kind of property exposure.
Whether you’re looking for a passive strategy that mirrors a well-established index, or an actively managed ETF that adapts to market conditions while maintaining the transparency and accessibility of the ETF format, we offer products to suit your needs.
Our funds provide access to global listed property markets—allowing South African investors to diversify beyond local real estate, without the administrative hurdles of direct offshore investing.
Because in our view, it’s not about passive vs active. It’s about smart, transparent, and well-structured access to the right kind of property exposure for your investment strategy.
Compare Reitway’s REIT ETFs here.
Get the latest blog updates via email
Your nickname:
Email address:
Subscribe