On the ASX, the ETF Securities EURO STOXX 50 ETF (ASX: ESTX) and Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) ETF (ASX: MICH) might be worth digging into in 2021.
What to know about the ETF Securities ESTX ETF
The ETFS ESTX ETF provides investors with exposure to 50 blue-chip companies from 12 eurozone countries; namely Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
According to our most recent data, the ESTX ETF had $47.67 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Keep learning about the ESTX ETF. Click here to access our free ETF review.
The Magellan MICH ETF – key points
The Magellan MICH Fund is an actively-managed portfolio that invests in a select array of international infrastructure companies. The fund typically selects between 20-40 global equities from the infrastructure sector and hedges its exposure against the Australian dollar to manage currency risks.
With our numbers for December 2020, MICH’s FUM stood at $724.35 million. Since the MICH’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Infrastructure sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the MICH ETF bad?
Magellan, the ETF issuer, charges a yearly management fee of 1.05% for the MICH ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $21.00.
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 MICH 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 MICH.
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