What do the OZR and SYI ETFs do?
The SPDR OZR ETF invests in resources companies from within the ASX 200 and aims to track the S&P/ASX 200 Resources Index.
The SPDR SYI ETF invests in a diversified portfolio of high-yielding ‘blue chip’ Australian companies – excluding real estate investment trusts (REITs). This ETF tracks the MSCI Australia Select High Dividend Yield Index.
If you like the look of the OZR ETF, check out our free OZR ETF report.
One of the easy ways we compare ETFs such as SYI and OZR at Best ETFs and Rask Australia is by analysing the fees and costs of an ETF. Internally, we score ETFs based on management fees, plus indirect costs and we take into account the buy-sell spread. We like to look at the ‘all-in’ costs of buying and owning an ETF.
We’ll keep it basic and just study the fees. Based on our data for July 2022, the OZR ETF has a management expense ratio (MER) of 0.34% while the SYI ETF’s yearly fee was 0.35%.So OZR comes out on top. That said, a more useful metric to know is the fee quartiles that these ETFs find themselves in (note: quartile 1 is best). For example, any ETF which has a fee below 0.3% would be considered in our first (best) quartile.
Three-year return?
As Jerry Maguire said, ‘show me the money’. Keep in mind, performance isn’t everything — and past performance is not indicative of future performance. It’s just one part of a much bigger picture. The reason we say performance is not everything is because of volatility of financial markets and the economy from one year to the next. Some ETFs and funds can put in a positive return one year just to generate inferior returns the next time around. That’s why we prefer three-year or seven-year track records over one-year track records. It can smooth out the temporary performances caused by external factors. Both ETFs have achieved our three-year performance hurdle. As of July 2022, the OZR ETF had an average annual return of 9.34%. During the same time, the SYI ETF returned 6.65%.
Finally, at Best ETFs Australia, we apply a rating to the ETF issuer or provider. That is, the company that starts and is responsible for operating the ETF on the ASX. There are too many considerations that go into our scoring to detail here. The issuer for both of these ETFs is SPDR, so we can’t rate these ETFs differently. However, the OZR had total funds invested (FUM) of $112.29 million and SYI had $291. million. More FUM is a sign of investor interest or uptake.
Best ETFs Takeaway
Don’t forget our free reviews on ASX OZR and ASX SYI.
In summary, the SYI ETF ranks more positively against our internal scoring methodology but not by much compared to OZR.
Please, keep in mind, there is much more to zeroing in on a good ETF. That’s why you should now use these skills to find the best ETF you can. If you want the name of our team’s top ETF pick for 2022, keep reading…
