ETF Wraps: A Comprehensive Guide to Account Types & Benefits

ETF wraps are a type of investment vehicle that can help an investor diversify and provide them with steady returns. There are two different types of ETF wraps to choose from: discretionary and non-discretionary. Here are some of the benefits of each type of ETF wrap.

Discretionary

A discretionary ETF wrap is a type of investment where the investor does not have to choose a particular type of asset allocation. The big benefit with this type of investment is that it is a "hands off" type of solution. You can simply allow the fund managers of the ETF wrap program to choose everything for you. Another benefit is that the asset allocation can automatically change for you as you get older.

Non-Discretionary

This type of ETF wrap is one in which you choose all of the individual ETFs that you want to invest in. The big advantage with a non-discretionary ETF wrap is that you can decide exactly what you want to do. You do not have to leave anything out to chance or trust your fund managers to do the job for you. Instead, you can find out information about every option that you have and make an educated decision.