Find out what the ETF does
The SPDR SFY ETF is the only Australian ETF providing exposure to Australia’s top 50 listed companies, by market capitalisation. SFY provides a low-cost way to invest in the ASX’s top 50 companies through a single fund.
The SPDR SFY ETF could be used by investors to get exposure to a broad basket of Australia’s largest public companies. The top 50 Australian stocks actually represent 80% of the Australian equity market and generally have a high level of liquidity. These Australian companies are likely to grow their profits over time and have a track record of paying regular tax-effective dividends for their shareholders.
SFY’s FUM meets our hurdle
The SPDR SFY ETF had $735.77 million of money invested when we last pulled the monthly numbers. Given SFY’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Pay attention to yearly costs & fees
SPDR charges investors a yearly management fee of 0.29% for the SFY ETF. This means that if you invested $2,000 in SFY for a full year, you could expect to pay management fees of around $5.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Our takeaway
If you’re thinking about investing in SFY, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free SPDR SFY report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Australian shares sector to do a good comparison.
