On the ASX, the ETF Securities Physical Gold ETF (ASX: GOLD) and Montaka Global Equities Fund (Managed Fund) ETF (ASX: MOGL) are two ASX ETFs worthy of closer inspection.
What the ETF Securities GOLD ETF does for investors
The ETFS GOLD ETF provides investors with access to the precious metal of gold, by seeking to achieve a return equivalent to the movements in the gold spot price, before fees and expenses.
According to our most recent data, the GOLD ETF had $2185.01 million of money invested. With GOLD’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 Commodities 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.
Fees to consider
According to our numbers, the annual management fee on the GOLD ETF is 0.40%. The issuer, ETF Securities, collects this fee automatically.
Meaning, if you invested $2,000 in the GOLD ETF for a full year you could expect to pay management fees of around $8.00. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.
A fee comparison
Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.51%, which is $10.20 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the GOLD Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.
Side note: did you know you can access our full review of the GOLD ETF by clicking here?
What does the Montaka MOGL ETF do?
The Montgomery MOGL Fund is an actively-managed portfolio that invests in a concentrated portfolio of global equities. The fund typically selects between 15-30 global equities and aims to pay a distribution of at least 4.5% per year.
With our numbers for October 2021, MOGL’s FUM stood at $86.89 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the MOGL ETF bad?
Montaka, the ETF issuer, charges a yearly management fee of 1.32% for the MOGL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $26.40.
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.
If you want to learn more about the MOGL ETF, you should know that you can access our free investment report.
[ls_content_block id=”4954″ para=”paragraphs”]
