Australian and ASX-listed ETFs like the ETF Securities ETPMPD ETF (ASX: ETPMPD) are gaining more attention than ever because of how easy they make it for investors to get exposure to the Commodities sector. Here’s a quick review of the ETPMPD ETF.
What does the ETPMPD ETF do for a diversified portfolio?
The ETFS ETPMPM ETF provides investors with access to the precious metal of palladium, by seeking to achieve a return equivalent to the movements in the palladium spot price, before fees and expenses. Palladium comes from the same family of metals as platinum and is used in many electronic and industrial products, particularly in the automotive industry.
How big is the ETF Securities ETPMPD ETF?
The ETF Securities ETPMPD ETF had $9.26 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 ETF Securities, 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.
ETPMPD ETF fees reviewed
ETF Securities charges investors a yearly management fee of 0.49% for the ETPMPD ETF. This means that if you invested $2,000 in ETPMPD for a full year, you could expect to pay management fees of around $9.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Even if you like what you see, before diving straight into buying the ETPMPD ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our ETF Securities ETPMPD report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
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