On the ASX, the Betashares FTSE RAFI Australia 200 ETF (ASX: QOZ) and iShares Edge MSCI World Minimum Volatility ETF (ASX: WVOL) might be worth digging into in 2020.
What to know about the Betashares QOZ ETF
The BetaShares QOZ ETF provides exposure to a ‘fundamentally weighted’ index of 200 large Australian shares. This ETF focuses on weighting the portfolio with a focus on ‘economic importance’ rather than market capitalisation, while also aiming to outperform traditional market-cap weighted indices.
According to our most recent data, the QOZ ETF had $252.24 million of money invested. With QOZ’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws 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 lowers the chance that the ETF issuer will close the ETF.
Keep learning about the QOZ ETF. Click here to access our free ETF review.
The iShares WVOL ETF – key points
The iShares WVOL ETF provides exposure to the performance of developed share markets that, on the whole, have lower volatility characteristics relative to the broader global developed share markets.
With our numbers for July 2020, WVOL’s FUM stood at $117.93 million. Since the WVOL’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Multifactor sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the WVOL ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.3% for the WVOL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $6.00.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Before rushing out and investing in the QOZ fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on QOZ.
[ls_content_block id=”4954″ para=”paragraphs”]
