It’s time to run a ruler over Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) and ETF Securities Physical Silver ETF (ASX: ETPMAG). The ETFs invest in the Australian shares and Commodities sectors/industries, respectively.
The Vanguard VSO ETF (ASX:VSO)
The Vanguard VSO ETF provides exposure to a diversified portfolio of Australian small caps and tracks the MSCI Australian Shares Small Cap Index. This is a low-cost way to access the performance of Australian small-cap shares through a single fund.
According to our most recent data, the VSO ETF had $464.55 million of money invested. With VSO’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 Australian 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.
To learn more about the VSO ETF, read our free ETF investment report once you’re done with this article.
ETF Securities ETPMAG ETF (ASX:ETPMAG)
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.
With our numbers for December 2020, ETPMAG’s FUM stood at $219.1 million. Since the ETPMAG’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 ETPMAG ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.49% for the ETPMAG 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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free ETPMAG ETF report by clicking here.
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