Don’t you wonder if now is the time to start analysing the BetaShares Agriculture ETF-Currency Hedged (Synthetic) ETF (ASX: QAG) and Switzer Quality Global Growth Fund (Quoted Managed Fund) ETF (ASX: WCMQ)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Commodities and International shares sectors, respectively.
Is the QAG ETF a good investment? Here’s where you start…
The BetaShares QAG ETF provides investors with exposure to a basket of the most significant global agricultural commodities, hedged into Australian dollars.
According to our most recent data, the QAG ETF had $6.07 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.
Get our team’s QAG ETF review, available free when you click this link: access the free investment report.
A quick take of the WCMQ ETF
The WCMQ Fund is issued by Switzer and investments are managed by WCM Investment Management. WCMQ uses an active investment approach and invests with high conviction in shares of companies that its investment team deem to be high-quality, growth-style companies.
With our numbers for Oct 2020, WCMQ’s FUM stood at $178.3 million. Since the WCMQ’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 Growth factor sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the WCMQ ETF bad?
Switzer, the ETF issuer, charges a yearly management fee of 1.35% for the WCMQ 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.
Did you know: you can get our full ETF review of WCMQ by clicking here?
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