It’s time to run a ruler over Perth Mint Gold ETF (ASX: PMGOLD) and Vanguard US Total Market Shares Index ETF (ASX: VTS). The ETFs invest in the Commodities and International shares sectors/industries, respectively.
The 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.
According to our most recent data, the PMGOLD ETF had $613.9 million of money invested. With PMGOLD’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.
To learn more about the PMGOLD ETF, read our free ETF investment report once you’re done with this article.
Vanguard VTS ETF (ASX:VTS)
The Vanguard VTS ETF provides investors with broad, diversified exposure to the US market. The ETF is not hedged, meaning investors are also exposed to exchange rate fluctuations.
With our numbers for Oct 2020, VTS’s FUM stood at $1917.61 million. Since the VTS’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 VTS ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.03% for the VTS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $0.60.
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 VTS ETF report by clicking here.