the two entities aren't similar not at all except they both...

the two entities aren't similar not at all except they both have (relatively) high management fees.

management (and performance) fees may not always detract from the returns of the funds. it doesn't matter if the funds are ETF's or LIC's.

it is commonly regarded that most ETF's will outperform LIC's and individual shares over time. the longer the timeframe the greater the chance. l have heard it said that this is due to high fees and other factors.

(I actually believe this to be correct. management fees anchor performance over the very long term).

l was suprised to see that despite the fees changed by ETF IOO (they outperform other ETF's in Australia) lower fees don't always = outperformance.

likewise the management fees of LSF (which is a LIC) are quite high - however it's SP performance has been stunning.

unrelated l know but l find it remarkable that LSF (so far..) is actually showing similar returns to the one of the best ETF in Australia despite much much higher management fees than the best ETF