If you’re considering getting exposure to the International shares sector, the SPDR S&P Global Dividend Fund ETF (ASX: WDIV) might be one ASX ETF to watch in January.
How the WDIV ETF fits into an ASX portfolio
WDIV invests in shares of global companies that have a strong track record for paying dividends to their investors (i.e. they have paid a dividend for at least 10 years in a row).
An investor could use WDIV to invest in shares that have — in the past — paid high and regular dividends to their shareholders. While this comes with the risks of the sharemarket, investors with a long-term investment horizon (10+ years) might see it as an alternative source of passive income.
WDIV meets our minimum level for FUM
The SPDR WDIV ETF had $350.39 million of money invested when we last pulled the monthly numbers. Given WDIV’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 International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
SPDR charges investors a yearly management fee of 0.50% for the WDIV ETF. This means that if you invested $2,000 in WDIV for a full year, you could expect to pay management fees of around $10.00.
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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our SPDR WDIV report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
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