How the ACDC ETF fits into an ASX portfolio
The ETFS ACDC ETF provides investors with passive exposure to the performance of companies involved in battery technology and lithium mining. ACDC adopts an equal weight strategy, meaning that it weights the shares within the portfolio equally – this is different from traditional index fund ETFs which invest more in the largest companies (as determined by market capitalisation).
The ACDC ETF could be used by investors to gain a tactical exposure to the battery technology thematic. ACDC is a global ETF, investing across Asia, the US, Europe and to a minor extent, Australia.
ACDC meets our minimum level for FUM
The ETF Securities ACDC ETF had $499.14 million of money invested when we last pulled the monthly numbers. Given ACDC’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 International shares 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 0.69% for the ACDC ETF. This means that if you invested $2,000 in ACDC for a full year, you could expect to pay management fees of around $13.80.
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 ACDC 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 ACDC ETF? In the month of August 2022, you can buy the ACDC 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 ACDC for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
