If you’re on the hunt for exposure to the Australian shares sector, it could be worth adding the SPDR S&P/ASX 200 Listed Property Fund ETF (ASX: SLF) to your ASX watchlist. Let’s take a closer look at this SPDR ETF.
What is the SLF ETF used for?
The SLF ETF by SPDR invests in shares/securities of listed real estate investment trusts (REITs). Investors can use these property-focused ETFs to get exposure to a broad basket of trusts and companies exposed to property, including office spaces, commercial rental spaces and construction projects.
Keep an eye on FUM
The SPDR SLF ETF had $491.03 million of money invested when we last pulled the monthly numbers. Given SLF’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
Fees and costs for investors
SPDR charges investors a yearly management fee of 0.4% for the SLF ETF. This means that if you invested $2,000 in SLF for a full year, you could expect to pay management fees of around $8.00.
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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the SLF ETF. Before doing anything, take a look at our SPDR SLF report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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