Would think that a chuck mount collet ER system would be preferred in that you could pass stock through the collet. An ER40 allows larger stock but you may be limited by the spindle bore. You can either buy the mounting plate and ER chuck separate and machine them or there are a few vendors that sell them as a set. You still need to do a skim cut and a registration step. There is also the Shar's Set-True ER40 chuck, you would need to machine a back plate.
ER 40 COLLETS CHUCK WITH WRENCH AND 1 1/2-8 MOUNTING PLATE WITH FASTENERS. NO COLLETS INCLUDED.
www.ebay.com
INSTRUCTIONS INCLUDED. NO COLLETS.
www.ebay.com
ER collets are not designed to hold stock that isn't passed through the hole collet, so if you try to hold say a 1/2" piece in the collet the unsupported portion of the collet can skew when tightening the collet. A 5C collet holds at the tip of the collet, so can hold very short pieces of stock, but ER has better gripping power with longer stock.