What does the OZF ETF do for a diversified portfolio?
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.
How big is the SPDR OZF ETF?
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.
OZF ETF fees reviewed
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.
Next steps
Even if you like what you see, before diving straight into buying the OZF ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our SPDR OZF report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
