In this article, we’ll try to explain why the ETF Securities Physical Silver ETF (ASX: ETPMAG) and VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the ETPMAG ETF
The ETFS ETPMAG ETF provides investors with access to the precious metal of silver, by seeking to achieve a return equivalent to the movements in the silver spot price, before fees and expenses.
According to our most recent data, the ETPMAG ETF had $219.1 million of money invested. With ETPMAG’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 Commodities 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 ETPMAG ETF? Grab our ETF free investment report.
The MOAT ETF – a quick look for savvy investors
The VanEck MOAT ETF provides investors with exposure to a portfolio of carefully selected US companies which fit the criteria of having a sustainable competitive advantage, sometimes called a ‘moat’.
With our numbers for December 2020, MOAT’s FUM stood at $195.03 million. Since the MOAT’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 Multifactor sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the MOAT ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.49% for the MOAT 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 VanEck MOAT 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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