Australian and ASX-listed ETFs like the ETF Securities ESTX ETF (ASX: ESTX) are gaining more attention than ever because of how easy they make it for investors to get exposure to the International shares sector. Here’s a quick review of the ESTX ETF.
What does the ESTX ETF do for a diversified portfolio?
The ETFS ESTX ETF provides investors with exposure to 50 blue-chip companies from 12 eurozone countries; namely Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
The ESTX ETF could be used by investors looking to gain exposure to leading European companies. You could buy all of these companies yourself using a share brokerage account, but that would be a very expensive and time-consuming process.
How big is the ETF Securities ESTX ETF?
The ETF Securities ESTX ETF had $73.4 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as ETF Securities, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
ESTX ETF fees reviewed
ETF Securities charges investors a yearly management fee of 0.35% for the ESTX ETF. This means that if you invested $2,000 in ESTX for a full year, you could expect to pay management fees of around $7.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Even if you like what you see, before diving straight into buying the ESTX ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our ETF Securities ESTX report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
So how can you actually invest in the ESTX ETF? In the month of June 2022, you can buy the ESTX ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy ESTX for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
