Don’t you wonder if now is the time to start analysing the VanEck Vectors Gold Miners ETF (ASX: GDX) and SPDR S&P/ASX 200 Financials ex A-REITs Fund ETF (ASX: OZF)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Australian shares sectors, respectively.
Is the GDX ETF a good investment? Here’s where you start…
The VanEck GDX ETF gives investors exposure to companies from around the world which are involved primarily in gold mining.
According to our most recent data, the GDX ETF had $377.69 million of money invested. With GDX’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.
Get our team’s GDX ETF review, available free when you click this link: access the free investment report.
A quick take of the OZF ETF
The SPDR OZF ETF is a more unique ETF that invests in financial companies from within the ASX 200, while excluding A-REITs and other real-estate and development related companies.
With our numbers for December 2020, OZF’s FUM stood at $110.34 million. Since the OZF’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the OZF ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.40% for the OZF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.00.
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.
Did you know: you can get our full ETF review of OZF by clicking here?
[ls_content_block id=”4954″ para=”paragraphs”]
