In this article, we’ll try to explain why the Montaka Global Equities Fund (Managed Fund) ETF (ASX: MOGL) and ETF Securities Morningstar Global Technology ETF (ASX: TECH) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the MOGL ETF
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.
According to our most recent data, the MOGL ETF had $84.2 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.
Like the look of the MOGL ETF? Grab our ETF free investment report.
The TECH ETF – a quick look for savvy investors
The ETFS TECH ETF provides investors with exposure to the performance of shares in around 30 undervalued competitively-advantaged global technology businesses. Think global social media companies, online or cloud-based platforms, leaders in artificial intelligence, software creators and digital advertisers.
With our numbers for December 2021, TECH’s FUM stood at $395.46 million. Since the TECH’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 TECH ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.45% for the TECH ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.00.
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 TECH 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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