If you’re looking for an ASX ETF in the Commodities sector, chances are, the Perth Mint Gold ETF (ASX: PMGOLD) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use the PMGOLD ETF
The Perth Mint PMGOLD ETF represents a right to gold created by The Perth Mint, Australia’s largest fully integrated precious metals enterprise. The ETF gives investors the ability to purchase Government-backed gold via the ASX, rather than holding physical bars themselves.
The PMGOLD ETF is designed to make life easy, allowing investors to gain exposure to physical gold via an ETF which can be bought and sold like shares. The PMGOLD ETF gives investors direct exposure to the underlying asset (gold bars) and returns depend on the international spot price of gold in Australian dollars, less fees and costs.
PMGOLD meets our minimum market cap (FUM) criteria
The Perth Mint PMGOLD ETF had $564.46 million of money invested when we last pulled the monthly numbers. Given PMGOLD’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 Commodities sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
PMGOLD ETF fees explained
Perth Mint charges investors a yearly management fee of 0.15% for the PMGOLD ETF. This means that if you invested $2,000 in PMGOLD for a full year, you could expect to pay management fees of around $3.00.
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.
Putting it all together
If you’re weighing up investing in PMGOLD, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Perth Mint PMGOLD report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Commodities sector to compare your options.
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