Find out what the ETF does
The Magellan MHG Fund is an actively-managed portfolio that invests in a select array of international companies. The fund typically selects between 20-40 global equities and hedges its exposure against the Australian dollar to manage currency risks.
MHG could be used by investors looking for a concentrated portfolio of leading global companies, as selected and managed by the investment team at Magellan. According to Magellan, it looks for shares that are trading at an appropriate discount to their assessed intrinsic value.
MHG’s FUM meets our hurdle
The Magellan MHG ETF had $163.76 million of money invested when we last pulled the monthly numbers. Given MHG’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.
Pay attention to yearly costs & fees
Magellan charges investors a yearly management fee of 1.35% for the MHG ETF. This means that if you invested $2,000 in MHG for a full year, you could expect to pay management fees of around $27.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Our takeaway
If you’re thinking about investing in MHG, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free Magellan MHG report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.
