Don’t you wonder if now is the time to start analysing the BetaShares Crude Oil Index ETF-Currency Hedged (Synthetic) ETF (ASX: OOO) and Vanguard Global Multi-Factor Active ETF (Managed Fund) ETF (ASX: VGMF)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Commodities and International shares sectors, respectively.
Is the OOO ETF a good investment? Here’s where you start…
The BetaShares OOO ETF provides investors with exposure to crude oil futures, hedged into Australian dollars.
According to our most recent data, the OOO ETF had $218.8 million of money invested. With OOO’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the Commodities sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.
Get our team’s OOO ETF review, available free when you click this link: access the free investment report.
A quick take of the VGMF ETF
The Vanguard VGMF Fund is an actively-managed ETF providing investors with exposure to a portfolio of global companies selected using a rules-based, quantitative approach.
With our numbers for July 2020, VGMF’s FUM stood at $16.05 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Multifactor sector ETFs, using our full list of ETFs.
Are the fees for the VGMF ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.33% for the VGMF ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $6.60.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Did you know: you can get our full ETF review of VGMF by clicking here?