Find out what the ETF does
The SPDR OZF ETF is a more unique ETF that invests in financial companies from within the ASX 200, while excluding A-REITs and other real-estate and development related companies.
The SPDR OZF ETF could be used by investors looking to invest in the Australian financial industry, while avoiding direct exposure to real-estate and property related sectors. These Australian companies are likely to grow their profits over time and have a track record of paying regular tax-effective dividends for their shareholders.
OZF’s FUM meets our hurdle
The SPDR OZF ETF had $124.57 million of money invested when we last pulled the monthly numbers. Given OZF’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 Australian 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
SPDR charges investors a yearly management fee of 0.34% for the OZF ETF. This means that if you invested $2,000 in OZF for a full year, you could expect to pay management fees of around $6.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% 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 OZF, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free SPDR OZF report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Australian shares sector to do a good comparison.
