In this article, we’ll try to explain why the BetaShares Global Sustainability Leaders ETF (ASX: ETHI) and Magellan Global Equities Fund Currency Hedged (Managed Fund) ETF (ASX: MHG) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the ETHI ETF
The BetaShares ETHI ETF provides investors with exposure to a diversified portfolio of global companies that fit within the environmental, social and governance (ESG) framework set, along with screening out companies with significant exposure to fossil fuels. ETHI has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
According to our most recent data, the ETHI ETF had $869.6 million of money invested. With ETHI’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 International shares 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.
Like the look of the ETHI ETF? Grab our ETF free investment report.
The MHG ETF – a quick look for savvy investors
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.
With our numbers for Oct 2020, MHG’s FUM stood at $275.76 million. Since the MHG’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Hedge fund sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the MHG ETF bad?
Magellan, the ETF issuer, charges a yearly management fee of 1.35% for the MHG ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $27.00.
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.
The Magellan MHG ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
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