Some things you should know about the QOZ ETF
The BetaShares QOZ ETF provides exposure to a ‘fundamentally weighted’ index of 200 large Australian shares. This ETF focuses on weighting the portfolio with a focus on ‘economic importance’ rather than market capitalisation, while also aiming to outperform traditional market-cap weighted indices.
According to our most recent data, the QOZ ETF had $247.44 million of money invested. With QOZ’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 Australian shares 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.
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The WXOZ ETF – a quick look for savvy investors
The SPDR WXOZ Fund invests in shares of larger companies listed on stock markets outside of Australia, without hedging.
With our numbers for Oct 2020, WXOZ’s FUM stood at $201.33 million. Since the WXOZ’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 WXOZ ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.3% for the WXOZ ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $6.00.
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.
The SPDR WXOZ ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.