It’s time to run a ruler over Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) and ETF Securities Physical Palladium ETF (ASX: ETPMPD). The ETFs invest in the Australian shares and Commodities sectors/industries, respectively.
The Vanguard VLC ETF (ASX:VLC)
The Vanguard VLC ETF provides exposure to the MSCI Australian Shares Large Cap Index. This index is a ‘free float-adjusted market capitalization index’ which provides investors with exposure to the largest companies on the ASX.
According to our most recent data, the VLC ETF had $104.84 million of money invested. With VLC’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.
To learn more about the VLC ETF, read our free ETF investment report once you’re done with this article.
ETF Securities ETPMPD ETF (ASX:ETPMPD)
The ETFS ETPMPM ETF provides investors with access to the precious metal of palladium, by seeking to achieve a return equivalent to the movements in the palladium spot price, before fees and expenses. Palladium comes from the same family of metals as platinum and is used in many electronic and industrial products, particularly in the automotive industry.
With our numbers for Oct 2020, ETPMPD’s FUM stood at $9.26 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Index sector ETFs, using our full list of ETFs.
Are the fees for the ETPMPD ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.49% for the ETPMPD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.80.
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 ETPMPD ETF report by clicking here.