If you’re considering getting exposure to the International shares sector, the Montgomery Global Equities Fund (Managed Fund) ETF (ASX: MOGL) might be one ASX ETF to watch in December.
How the MOGL ETF fits into an ASX portfolio
The Montgomery MOGL Fund is an actively-managed portfolio that invests in a concentrated portfolio of global equities. The fund typically selects between 15-30 global equities and aims to pay a distribution of at least 4.5% per year.
MOGL ETF is not yet at our $100m minimum FUM level
The Montgomery MOGL ETF had $83.95 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as Montgomery, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
What about management fees and costs?
Montgomery charges investors a yearly management fee of 1.32% for the MOGL ETF. This means that if you invested $2,000 in MOGL for a full year, you could expect to pay management fees of around $26.40.
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.
Before buying any ETF based on what you read here on Best ETFs, check out our Montgomery MOGL report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.