It’s time to run a ruler over Schroder Investment Management Australia Limited Real Return Fund (Managed Fund) ETF (ASX: GROW) and Perth Mint Gold ETF (ASX: PMGOLD). The ETFs invest in the Multi-Asset and Commodities sectors/industries, respectively.
The Schroder Investment Management Australia Limited GROW ETF (ASX:GROW)
The Schroder GROW Fund is a multi-asset class, actively-managed portfolio of global assets. The fund aims to deliver a return of 5% per annum above inflation (before fees), over a rolling 3-year period.
According to our most recent data, the GROW ETF had $38.88 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the GROW ETF, read our free ETF investment report once you’re done with this article.
Perth Mint PMGOLD ETF (ASX:PMGOLD)
The Perth Mint PMGOLD ETF represents a right to gold created by The Perth Mint, Australia’s largest fully integrated precious metals enterprise. The ETF gives investors the ability to purchase Government-backed gold via the ASX, rather than holding physical bars themselves.
With our numbers for Oct 2020, PMGOLD’s FUM stood at $613.9 million. Since the PMGOLD’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 Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the PMGOLD ETF bad?
Perth Mint, the ETF issuer, charges a yearly management fee of 0.15% for the PMGOLD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $3.00.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free PMGOLD ETF report by clicking here.