On the ASX, the Vanguard US Total Market Shares Index ETF (ASX: VTS) and ETF Securities Physical Palladium ETF (ASX: ETPMPD) might be worth digging into in 2021.
What to know about the Vanguard VTS ETF
The Vanguard VTS ETF provides investors with broad, diversified exposure to the US market. The ETF is not hedged, meaning investors are also exposed to exchange rate fluctuations.
According to our most recent data, the VTS ETF had $2084.38 million of money invested. With VTS’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 VTS ETF. Click here to access our free ETF review.
The ETF Securities ETPMPD ETF – key points
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.
With our numbers for December 2020, ETPMPD’s FUM stood at $9 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 ETPMPD ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.49% for the ETPMPD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.80.
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 ETPMPD 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 ETPMPD.
[ls_content_block id=”4954″ para=”paragraphs”]
