It’s time to run a ruler over iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) and ETF Securities Morningstar Global Technology ETF (ASX: TECH). The ETFs invest in the Australian shares and International shares sectors/industries, respectively.
The iShares ISO ETF (ASX:ISO)
The iShares ISO ETF provides exposure to 200 small cap Australian shares. This is a low-cost way to access small Australian companies through a single fund.
According to our most recent data, the ISO ETF had $156.63 million of money invested. With ISO’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 Australian 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.
To learn more about the ISO ETF, read our free ETF investment report once you’re done with this article.
ETF Securities TECH ETF (ASX:TECH)
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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free TECH ETF report by clicking here.
So how can you actually invest the TECH ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Mar 2022, with your free Pearler account you can buy the TECH 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 TECH ETF to take-up this offer. Sounds pretty good, right? To invest in TECH for $0 brokerage, simply click here to visit Pearler’s website and sign up.
