Don’t you wonder if now is the time to start analysing the ETF Securities Physical Silver ETF (ASX: ETPMAG) and Magellan Global Equities Fund Currency Hedged (Managed Fund) ETF (ASX: MHG)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Commodities and International shares sectors, respectively.
Is the ETPMAG ETF a good investment? Here’s where you start…
The ETFS ETPMAG ETF provides investors with access to the precious metal of silver, by seeking to achieve a return equivalent to the movements in the silver spot price, before fees and expenses.
According to our most recent data, the ETPMAG ETF had $226.55 million of money invested. With ETPMAG’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 Commodities 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.
Get our team’s ETPMAG ETF review, available free when you click this link: access the free investment report.
A quick take of the MHG ETF
The Magellan MHG Fund is an actively-managed portfolio that invests in a select array of international companies. The fund typically selects between 20-40 global equities and hedges its exposure against the Australian dollar to manage currency risks.
With our numbers for December 2021, MHG’s FUM stood at $317.84 million. Since the MHG’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 Active ETF (e.g. ETMF) sector should be able to scale well and become profitable for the ETF issuer.
A look at the MHG ETF fee load?
Magellan, the ETF issuer, charges a yearly management fee of 0.0135 for the MHG ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $27.00.
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: you can get our full ETF review of MHG by clicking here?
