In this article, we’ll try to explain why the Switzer Quality Global Growth Fund (Quoted Managed Fund) ETF (ASX: WCMQ) and ETF Securities Physical Palladium ETF (ASX: ETPMPD) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the WCMQ ETF
The WCMQ Fund is issued by Switzer and investments are managed by WCM Investment Management. WCMQ uses an active investment approach and invests with high conviction in shares of companies that its investment team deem to be high-quality, growth-style companies.
According to our most recent data, the WCMQ ETF had $364.26 million of money invested. With WCMQ’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 WCMQ ETF? Grab our ETF free investment report.
The ETPMPD ETF – a quick look for savvy investors
The ETFS ETPMPM ETF provides investors with access to the precious metal of palladium, by seeking to achieve a return equivalent to the movements in the palladium spot price, before fees and expenses. Palladium comes from the same family of metals as platinum and is used in many electronic and industrial products, particularly in the automotive industry.
With our numbers for December 2021, ETPMPD’s FUM stood at $8.76 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the ETPMPD ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.49% for the ETPMPD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.80.
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 ETPMPD 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.
So how can you actually invest the ETPMPD ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Feb 2022, with your free Pearler account you can buy the ETPMPD ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.
You can invest as little as $500 in the ETPMPD ETF to take-up this offer. Sounds pretty good, right? To invest in ETPMPD for $0 brokerage, simply click here to visit Pearler’s website and sign up.
