The trend is now broad ETFs e.g VAS.asx, A200.asx for AU...

The trend is now broad ETFs e.g VAS.asx, A200.asx for AU exposure and are low MER.

The perceived view of no human to screw tings up in trying to stock pick. The ETF is 'self healing' if a stocks drops out.

ARG, AFI are perceived to index track as they are big and can't be nimble.

The ETF doesn't retain income vs ARG, AFI which holds back income at its discretion (some people don't want dividend smoothing, they want everything when it is available)

Newer investors are less familiar with LICs.

Another perception: Too many LICs have just been lining the pockets of the managers vs benefiting the investors. A closed pool of funds doesn't need a high level of rigor and scrutiny and accountability as the manager has their high fees regardless of performance.

ETFs have (almost live) price discovery / value. LICs are always in the rearview mirror as to what a unit is worth.

ETFs have ultra high liquidity. LICs are at the mercy of 'the next fool' buying in.

The perceived 'under value' or discount to NTA is the market valuing that bundle of stocks and the circumstances in which the funds are locked up and the forward risks of the manager plus perceived demand plus any possible alpha / out performance from the manager.

Now I'm not saying LICs don't have their place, just commenting that the winds of change in newer investors minds is driving the shift to ETFs. Many LIC managers have not delivered upon what it said on the tin. Chickens are now coming home to roost.