If you’re looking for an ASX ETF in the International shares sector, chances are, the Magellan Global Equities Fund Currency Hedged (Managed Fund) ETF (ASX: MHG) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use the MHG ETF
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.
MHG meets our minimum market cap (FUM) criteria
The Magellan MHG ETF had $275.76 million of money invested when we last pulled the monthly numbers. Given MHG’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.
MHG ETF fees explained
Magellan charges investors a yearly management fee of 1.35% for the MHG ETF. This means that if you invested $2,000 in MHG for a full year, you could expect to pay management fees of around $27.00.
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.
Putting it all together
If you’re weighing up investing in MHG, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Magellan MHG report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.