On the ASX, the ETF Securities S&P 500 High Yield Low Volatility ETF (ASX: ZYUS) and ETF Securities Physical Silver ETF (ASX: ETPMAG) might be worth digging into in 2021.
What to know about the ETF Securities ZYUS ETF
The ETF Securities ZYUS ETF provides investors with exposure to a portfolio of 50 high-yielding companies from the S&P 500.
According to our most recent data, the ZYUS ETF had $65.75 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.
Keep learning about the ZYUS ETF. Click here to access our free ETF review.
The ETF Securities ETPMAG ETF – key points
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 October 2021, ETPMAG’s FUM stood at $218.19 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.
Before rushing out and investing in the ETPMAG fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on ETPMAG.
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