The ETF Securities Morningstar Global Technology ETF (ASX: TECH) could be one to watch in October and in this short article, we’ll run through arguably the three most important factors to consider when you’re reviewing an ASX ETF.
What the ETF Securities TECH ETF actually does
The ETFS TECH ETF provides investors with exposure to the performance of shares in around 30 undervalued competitively-advantaged global technology businesses. Think global social media companies, online or cloud-based platforms, leaders in artificial intelligence, software creators and digital advertisers.
TECH meets our minimum FUM criteria
The ETF Securities TECH ETF had $156.64 million of money invested when we last pulled the monthly numbers. Given TECH’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 International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Don’t forget TECH’s fees
ETF Securities charges investors a yearly management fee of 0.45% for the TECH ETF. This means that if you invested $2,000 in TECH for a full year, you could expect to pay management fees of around $9.00.
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.
What to do next
If you’re weighing up investing in the TECH ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free ETF Securities TECH report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
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