In this article, we’ll try to explain why the Switzer Quality Global Growth Fund (Quoted Managed Fund) ETF (ASX: WCMQ) and ETF Securities Physical Platinum ETF (ASX: ETPMPT) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the WCMQ ETF
The WCMQ Fund is issued by Switzer and investments are managed by WCM Investment Management. WCMQ uses an active investment approach and invests with high conviction in shares of companies that its investment team deem to be high-quality, growth-style companies.
According to our most recent data, the WCMQ ETF had $218.84 million of money invested. With WCMQ’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.
Like the look of the WCMQ ETF? Grab our ETF free investment report.
The ETPMPT ETF – a quick look for savvy investors
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.
With our numbers for December 2020, ETPMPT’s FUM stood at $10.38 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 ETPMPT ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.49% for the ETPMPT 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.
The ETF Securities ETPMPT ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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