The Australian ETF industry seems to be growing faster by the day, and one of the ETFs you might have your eye is the iShares Edge MSCI World Multifactor ETF (ASX: WDMF). In this article, we’ll provide a quick review of the WDMF ETF.
The iShares WDMF ETF invests in a diversified portfolio of global equities using a specific rules-based multifactor strategy. According to iShares, the four key factors used to select companies for this ETF are quality (financially healthy firms), value (inexpensive stocks), size (smaller companies) and momentum (trending stocks).
2. Funds under management (FUM)
The iShares WDMF ETF had $218.7 million of money invested when we last pulled the monthly numbers. Given WDMF’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.
3. Management fees & costs matter
iShares charges investors a yearly management fee of 0.35% for the WDMF ETF. This means that if you invested $2,000 in WDMF for a full year, you could expect to pay management fees of around $7.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
These are just some of the considerations or factors you would need to consider when weighing up the WDMF ETF. If you’re looking to do some further digging, be sure to read our iShares WDMF report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.