Don’t you wonder if now is the time to start analysing the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) and ETF Securities Physical Platinum ETF (ASX: ETPMPT)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and Commodities sectors, respectively.
Is the VSO ETF a good investment? Here’s where you start…
The Vanguard VSO ETF provides exposure to a diversified portfolio of Australian small caps and tracks the MSCI Australian Shares Small Cap Index. This is a low-cost way to access the performance of Australian small-cap shares through a single fund.
According to our most recent data, the VSO ETF had $386.08 million of money invested. With VSO’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.
Get our team’s VSO ETF review, available free when you click this link: access the free investment report.
A quick take of the ETPMPT ETF
The ETFS ETPMPT ETF provides investors with access to the precious metal of platinum, by seeking to achieve a return equivalent to the movements in the platinum spot price, before fees and expenses.
With our numbers for Oct 2020, ETPMPT’s FUM stood at $8.99 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 ETPMPT ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.49% for the ETPMPT 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: you can get our full ETF review of ETPMPT by clicking here?