In this article, we’ll try to explain why the VanEck Vectors MSCI World Ex-Australia Quality ETF (ASX: QUAL) and SPDR S&P World ex Australian Fund ETF (ASX: WXOZ) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the QUAL ETF
The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia.
According to our most recent data, the QUAL ETF had $2831.33 million of money invested. With QUAL’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 QUAL ETF? Grab our ETF free investment report.
The WXOZ ETF – a quick look for savvy investors
The SPDR WXOZ Fund invests in shares of larger companies listed on stock markets outside of Australia, without hedging.
With our numbers for December 2021, WXOZ’s FUM stood at $301.04 million. Since the WXOZ’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 WXOZ ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.30% for the WXOZ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $6.00.
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 SPDR WXOZ 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.
