If you’re considering getting exposure to the Commodities sector, the ETF Securities Physical Silver ETF (ASX: ETPMAG) might be one ASX ETF to watch in June.
How the ETPMAG ETF fits into an ASX portfolio
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.
ETPMAG could be used by investors to diversify a portfolio with the precious metal commodity of silver which is typically uncorrelated with other asset classes. In this way, ETPMAG could be used as a hedge against risk – silver, like gold, has been traditionally used as a store of value and a hedge against inflation.
ETPMAG meets our minimum level for FUM
The ETF Securities ETPMAG ETF had $226.55 million of money invested when we last pulled the monthly numbers. Given ETPMAG’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Commodities sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
ETF Securities charges investors a yearly management fee of 0.49% for the ETPMAG ETF. This means that if you invested $2,000 in ETPMAG for a full year, you could expect to pay management fees of around $9.80.
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
Before buying any ETF based on what you read here on Best ETFs, check out our ETF Securities ETPMAG report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
So how can you actually invest in the ETPMAG ETF? In the month of June 2022, you can buy the ETPMAG 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 ETPMAG for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
