If you’re on the hunt for exposure to the Australian shares sector, it could be worth adding the SPDR S&P/ASX 200 Resource Fund ETF (ASX: OZR) to your ASX watchlist. Let’s take a closer look at this SPDR ETF.
What is the OZR ETF used for?
The SPDR OZR ETF invests in resources companies from within the ASX 200 and aims to track the S&P/ASX 200 Resources Index.
The SPDR OZR ETF could be used by investors looking to invest in the Australian resources sector. These companies are likely to grow their profits over time and pay regular tax-effective dividends to their shareholders.
Keep an eye on FUM
The SPDR OZR ETF had $113.52 million of money invested when we last pulled the monthly numbers. Given OZR’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
SPDR charges investors a yearly management fee of 0.40% for the OZR ETF. This means that if you invested $2,000 in OZR for a full year, you could expect to pay management fees of around $8.00.
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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the OZR ETF. Before doing anything, take a look at our SPDR OZR report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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