If you’re considering getting exposure to the Commodities sector, the ETF Securities Physical Platinum ETF (ASX: ETPMPT) might be one ASX ETF to watch in December.
How the ETPMPT ETF fits into an ASX portfolio
The ETFS ETPMPT ETF provides investors with access to the precious metal of platinum, by seeking to achieve a return equivalent to the movements in the platinum spot price, before fees and expenses.
ETPMPT ETF is not yet at our $100m minimum FUM level
The ETF Securities ETPMPT ETF had $8.99 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.
What about management fees and costs?
ETF Securities charges investors a yearly management fee of 0.49% for the ETPMPT ETF. This means that if you invested $2,000 in ETPMPT 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
Before buying any ETF based on what you read here on Best ETFs, check out our ETF Securities ETPMPT report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
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