Their targeted nature is one of the key differences between SMAs and mutual funds or exchange-traded funds (ETFs). While an SMA is managed for the benefit of one investor, mutual funds and ETFs pool the assets of many investors. There are plenty of other differences, however, and anyone considering an SMA should review the benefits and drawbacks of owning one.

In this article, we unpack:

• Who are SMAs intended for?
• Benefits of SMAs
• SMA versus mutual fund
• Disadvantages of SMAs

MF3011560,  7/23