In this article, we’ll try to explain why the iShares S&P 500 ETF (ASX: IVV) and ETF Securities SelfWealth SMSF Leaders ETF (ASX: SELF) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the IVV ETF
The iShares IVV ETF provides investors with exposure to the largest 500 US stocks, by market capitalisation. This is a low-cost way to access leading US companies through a single fund.
According to our most recent data, the IVV ETF had $5024.38 million of money invested. With IVV’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 International shares 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.
Like the look of the IVV ETF? Grab our ETF free investment report.
The SELF ETF – a quick look for savvy investors
The SelfWealth SELF ETF is an actively managed portfolio of Australian companies, which tracks an index that is made up of top performing SelfWealth member SMSF portfolios.
With our numbers for October 2021, SELF’s FUM stood at $109.93 million. Since the SELF’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 Active ETF (e.g. ETMF) sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the SELF ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.88% for the SELF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $17.60.
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.
The ETF Securities SELF ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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