It’s time to run a ruler over SPDR S&P Emerging Markets Fund ETF (ASX: WEMG) and Betashares Australian Sustainability Leaders ETF (ASX: FAIR). The ETFs invest in the International shares and Australian shares sectors/industries, respectively.
The SPDR WEMG ETF (ASX:WEMG)
WEMG invests in shares of medium and large companies listed on stock markets from approximately 20 emerging markets.
According to our most recent data, the WEMG ETF had $19.83 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the WEMG ETF, read our free ETF investment report once you’re done with this article.
Betashares FAIR ETF (ASX:FAIR)
The BetaShares FAIR ETF provides exposure to the largest Australian shares and focuses on companies which operate ethically. FAIR has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
With our numbers for July 2021, FAIR’s FUM stood at $1089.53 million. Since the FAIR’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 Ethical sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the FAIR ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.49% for the FAIR 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 FAIR ETF report by clicking here.
[ls_content_block id=”4954″ para=”paragraphs”]
