Could now be your opportunity to place the SPDR S&P World ex Australian Fund ETF (ASX: WXOZ) and the ETF Securities FANG+ ETF (ASX: FANG) on your ASX investing watchlist?
Why do investors own the SPDR S&P World ex Australian Fund ETF?
The SPDR WXOZ Fund invests in shares of larger companies listed on stock markets outside of Australia, without hedging.
According to our most recent data, the WXOZ ETF had $301.04 million of money invested. With WXOZ’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 WXOZ ETF is 0.003. The issuer, SPDR, collects this fee automatically.
Meaning, if you invested $2,000 in the WXOZ ETF for a full year you could expect to pay management fees of around $6.00. 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 WXOZ 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 WXOZ ETF review, click through to this ETF review page now.
ETF Securities FANG+ ETF
The ETFS FANG ETF provides investors with exposure to the performance of the 10 most highly-traded next generation technology and tech-enabled companies listed on US stock markets. FANG adopts an equal weight strategy, meaning that it weights the shares within the portfolio equally – this differs from the more commonly used method of weighting by market capitalisation.
With our numbers for December 2021, FANG’s FUM stood at $263.4 million. Since the FANG’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 Index sector should be able to scale well and become profitable for the ETF issuer.
A look at the FANG ETF fee load?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.0035 for the FANG ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $7.00.
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 FANG ETF, read our free ETF investment report.
So how can you actually invest the FANG ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Jun 2022, with your free Pearler account you can buy the FANG 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 FANG ETF to take-up this offer. Sounds pretty good, right? To invest in FANG for $0 brokerage, simply click here to visit Pearler’s website and sign up.
