Don’t you wonder if now is the time to start analysing the iShares S&P Global 100 ETF (ASX: IOO) and ETF Securities Morningstar Global Technology ETF (ASX: TECH)? These Exchange-Traded Funds (ETFs) operate in the International shares sector, a key sector for diversified portfolios.
Is the IOO ETF a good investment? Here’s where you start…
The iShares IOO ETF provides investors with exposure to 100 leading, multi-national companies across global share markets. This is a low-cost way to access a variety of global companies through a single fund.
According to our most recent data, the IOO ETF had $2413.16 million of money invested. With IOO’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 IOO ETF review, available free when you click this link: access the free investment report.
A quick take of the TECH ETF
The ETFS TECH ETF provides investors with exposure to the performance of shares in around 30 undervalued competitively-advantaged global technology businesses. Think global social media companies, online or cloud-based platforms, leaders in artificial intelligence, software creators and digital advertisers.
With our numbers for July 2021, TECH’s FUM stood at $318.69 million. Since the TECH’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 TECH ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.45% for the TECH ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.00.
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 TECH by clicking here?
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