Could now be your opportunity to place the SPDR S&P Global Dividend Fund ETF (ASX: WDIV) and the ETF Securities Physical Palladium ETF (ASX: ETPMPD) on your ASX investing watchlist?
Why do investors own the SPDR S&P Global Dividend Fund ETF?
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).
According to our most recent data, the WDIV ETF had $350.39 million of money invested. With WDIV’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.
Fees to consider
According to our numbers, the annual management fee on the WDIV ETF is 0.005. The issuer, SPDR, collects this fee automatically.
Meaning, if you invested $2,000 in the WDIV ETF for a full year you could expect to pay management fees of around $10.00. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.
A fee comparison
Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.51%, which is $10.20 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the WDIV Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.
Don’t stop here, to get our full WDIV ETF review, click through to this ETF review page now.
ETF Securities Physical Palladium ETF
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.
A look at the ETPMPD ETF fee load?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.0049 for the ETPMPD ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $9.80.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
To discover more facts about the ETPMPD ETF, read our free ETF investment report.
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 Apr 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.
