On the ASX, the iShares Edge MSCI World Multifactor ETF (ASX: WDMF) and BetaShares Global Agriculture ETF – Currency Hedged ETF (ASX: FOOD) might be worth digging into in 2020.
What to know about the iShares WDMF ETF
The iShares WDMF ETF invests in a diversified portfolio of global equities using a specific rules-based multifactor strategy. According to iShares, the four key factors used to select companies for this ETF are quality (financially healthy firms), value (inexpensive stocks), size (smaller companies) and momentum (trending stocks).
According to our most recent data, the WDMF ETF had $218.7 million of money invested. With WDMF’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 International 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 WDMF ETF. Click here to access our free ETF review.
The BetaShares FOOD ETF – key points
The BetaShares FOOD ETF provides investors with exposure to the performance of the largest agricultural companies in the world (excluding Australia), hedged into Australian dollars.
With our numbers for July 2020, FOOD’s FUM stood at $16.57 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Index sector ETFs, using our full list of ETFs.
Are the fees for the FOOD ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.57% for the FOOD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.40.
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 FOOD 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 FOOD.
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