Don’t you wonder if now is the time to start analysing the ETF Securities Physical Silver ETF (ASX: ETPMAG) and BetaShares Global Gold Miners ETF – Currency Hedged ETF (ASX: MNRS)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Commodities and International shares sectors, respectively.
Is the ETPMAG ETF a good investment? Here’s where you start…
The ETFS ETPMAG ETF provides investors with access to the precious metal of silver, by seeking to achieve a return equivalent to the movements in the silver spot price, before fees and expenses.
According to our most recent data, the ETPMAG ETF had $209.8 million of money invested. With ETPMAG’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 Commodities 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 ETPMAG ETF review, available free when you click this link: access the free investment report.
A quick take of the MNRS ETF
The BetaShares MNRS ETF provides investors with exposure to the performance of shares of the largest gold miners around the world, hedged into Australian dollars. This is a more indirect exposure to gold compared to physically-backed gold ETFs like GOLD and PMGOLD.
With our numbers for Oct 2020, MNRS’s FUM stood at $62.42 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 MNRS ETF bad?
BetaShares, the ETF issuer, charges a yearly management fee of 0.57% for the MNRS ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $11.40.
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 MNRS by clicking here?