Trading at a premium?, page-9

In an ideal world a LIC should be able to outperform an index tracking ETF over time due to being run by professional fund managers. As we've seen in the last 10 years however this has unfortunately not been the case and they've actually lagged. As a point in favour of AFIC/ARG I would say they are more conservative than a broad ETF in terms of portfolio structure and more likely to decline less in a down turn while also maintaining dividends (as AFIC did in the GFC) due to built up reserves/franking credits. I see the merit in both arguments though