ER were designed for tool holding but they're good for holding work too. As John says a big advantage of ER is the extended range of diameters that the collets can grip. Another advantage: I use ER32 collets on my lathe because that's what I have on my milling machine, which keeps the cost down!
BUT! Do you need collets at all? Their usefulness depends on the type of work you do, and they may be a waste of money. Most of my turning is 'general purpose' and it's done in a 3-jaw chuck. The accuracy of the chuck doesn't matter much because most cuts are close to the chuck. For practical purposes the turning accuracy is relative to the axis, not to the chuck.
With other work, the inaccuracy of the 3-jaw becomes an issue. When it does, I switch to my 4-jaw, which can be trued very accurately. The disadvantage of the 4-jaw is how long it takes to reset each time work is moved. Most of the time – for me – that isn't a problem. An advantage of chucks is that they can hold larger work than a collet system.
However, I sometimes tackle jobs where work is repeatedly taken on and off the lathe, in my case turn/mill/turn. Collets can save a lot of time because they don't have to be reset. Another time when collets are useful, is when you have to turn many examples of the same sort of item, like a stepped shaft, that can all be gripped by collets.
I over-estimated how often it's worth my while to fit the collet chuck to my lathe and I rarely use it. Before spending too much cash I recommend having a think about the type of work you expect to be doing. If occasional accuracy is all you need, then a 4-jaw may be enough. Collets are for when you need speed and accuracy and the type of work suits them. For example, I feel collets are better suited to clockmaking than building engines.
If money is no object, 5C.
Dave
Edited By SillyOldDuffer on 14/11/2018 11:31:17