Don’t you wonder if now is the time to start analysing the BetaShares Euro ETF (ASX: EEU) and iShares S&P 500 ETF (ASX: IVV)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Euro dollar and International shares sectors, respectively.
Is the EEU ETF a good investment? Here’s where you start…
The BetaShares EEU ETF provides investors with exposure to the change in price of the Euro, relative to the Australian dollar.
According to our most recent data, the EEU ETF had $5.77 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Get our team’s EEU ETF review, available free when you click this link: access the free investment report.
A quick take of the IVV ETF
The iShares IVV ETF provides investors with exposure to the largest 500 US stocks, by market capitalisation. This is a low-cost way to access leading US companies through a single fund.
With our numbers for Oct 2020, IVV’s FUM stood at $3292.43 million. Since the IVV’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the IVV ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.04% for the IVV ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $0.80.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
Did you know: you can get our full ETF review of IVV by clicking here?
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