Getting exposure to the International shares sector has never been easier thanks to ASX ETFs like the iShares Edge MSCI World Multifactor ETF (ASX: WDMF). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.
How the WDMF ETF could be used in portfolios
The iShares WDMF ETF invests in a diversified portfolio of global equities using a specific rules-based multifactor strategy. According to iShares, the four key factors used to select companies for this ETF are quality (financially healthy firms), value (inexpensive stocks), size (smaller companies) and momentum (trending stocks).
WDMF exceeds our minimum market cap (FUM) criteria
The iShares WDMF ETF had $174.33 million of money invested when we last pulled the monthly numbers. Given WDMF’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.
WDMF’s fees & costs explained
iShares charges investors a yearly management fee of 0.35% for the WDMF ETF. This means that if you invested $2,000 in WDMF for a full year, you could expect to pay management fees of around $7.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Bottom line
This is just a quick overview of the WDMF ETF. Before ‘testing the depth of water with both feet’ so to speak, be sure to read the WDMF ETF’s Product Disclosure Statement (PDS), available on the iShares website, or speak to your financial adviser. For another handy resource, take a look at our iShares WDMF report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
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