It’s time to run a ruler over Perth Mint Gold ETF (ASX: PMGOLD) and Switzer Quality Global Growth Fund (Quoted Managed Fund) ETF (ASX: WCMQ). The ETFs invest in the Commodities and International shares sectors/industries, respectively.
The Perth Mint PMGOLD ETF (ASX:PMGOLD)
The Perth Mint PMGOLD ETF represents a right to gold created by The Perth Mint, Australia’s largest fully integrated precious metals enterprise. The ETF gives investors the ability to purchase Government-backed gold via the ASX, rather than holding physical bars themselves.
According to our most recent data, the PMGOLD ETF had $579.59 million of money invested. With PMGOLD’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.
To learn more about the PMGOLD ETF, read our free ETF investment report once you’re done with this article.
WCM Quality Global Growth Fund (Quoted Managed Fund) (ASX:WCMQ)
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.
With our numbers for December 2020, WCMQ’s FUM stood at $218.84 million. Since the WCMQ’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 Growth factor sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the WCMQ ETF bad?
Switzer, the ETF issuer, charges a yearly management fee of 1.35% for the WCMQ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $27.00.
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 that you get access to our free investment report on Best ETFs Australia? View the free WCMQ ETF report by clicking here.
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