You might be sitting back and considering the ETF Securities FANG+ ETF (ASX: FANG) and thinking that December could be as good of a time as any to take closer look. Here’s how we would start our research.
Find out what the ETF does
The ETFS FANG ETF provides investors with exposure to the performance of the 10 most highly-traded next generation technology and tech-enabled companies listed on US stock markets. FANG adopts an equal weight strategy, meaning that it weights the shares within the portfolio equally – this differs from the more commonly used method of weighting by market capitalisation.
FANG’s FUM meets our hurdle
The ETF Securities FANG ETF had $131.34 million of money invested when we last pulled the monthly numbers. Given FANG’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.
Pay attention to yearly costs & fees
ETF Securities charges investors a yearly management fee of 0.35% for the FANG ETF. This means that if you invested $2,000 in FANG 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 0.5% 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.
If you’re thinking about investing in FANG, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free ETF Securities FANG report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.