If you’re considering getting exposure to the Multi-Asset sector, the Pinnacle Investment Management aShares Global Dynamic Income Fund (Managed Fund) ETF (ASX: SAVE) might be one ASX ETF to watch in October.
How the SAVE ETF fits into an ASX portfolio
The SAVE ETF is issued by Pinnacle and managed by Omega Global Investors and is designed to achieve a 4% annual return by investing in a variety of income-generating securities, such as shares, fixed income and currency exposures. We categorise it as a multi-asset fund.
SAVE ETF is not yet at our $100m minimum FUM level
The Pinnacle Investment Management SAVE ETF had $5.09 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as Pinnacle Investment Management, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
What about management fees and costs?
Pinnacle Investment Management charges investors a yearly management fee of 0.65% for the SAVE ETF. This means that if you invested $2,000 in SAVE for a full year, you could expect to pay management fees of around $13.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our Pinnacle Investment Management SAVE report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
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