On the ASX, the Montaka Montaka Global Extension Fund (ASX: MKAX) and BetaShares Geared US Equity Fund Currency Hedged (Hedge Fund) ETF (ASX: GGUS) might be worth digging into in 2022.
What to know about the Montaka MKAX ETF
The Montaka Global Extension fund is a listed managed fund which aims to offer investors exposure to long-term structural winning companies in attractive industries. Typically, the MKAX fund aims to hold 15 to 30 long positions in companies which are medium to large cap, together with 10-40 stock-specific short positions.
According to our most recent data, the MKAX ETF had $44.6 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Keep learning about the MKAX ETF. Click here to access our free ETF review.
The BetaShares GGUS ETF – key points
The BetaShares GGUS Fund is an internally geared fund, investing in the largest 500 US-listed companies by market capitalisation.
With our numbers for December 2021, GGUS’s FUM stood at $138.52 million. Since the GGUS’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 Hedge fund sector should be able to scale well and become profitable for the ETF issuer.
A look at the GGUS ETF fee load?
BetaShares, the ETF issuer, charges a yearly management fee of 0.008 for the GGUS ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $16.00.
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.
Before rushing out and investing in the GGUS fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on GGUS.
