Don’t you wonder if now is the time to start analysing the iShares MSCI Japan ETF (ASX: IJP) and SPDR S&P/ASX 50 ETF (ASX: SFY)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Australian shares sectors, respectively.
Is the IJP ETF a good investment? Here’s where you start…
The iShares IJP ETF provides investors with exposure to around 85% of the Japanese stock market. This is a low-cost way to access a specific market through a single fund.
According to our most recent data, the IJP ETF had $330.93 million of money invested. With IJP’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 International 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 IJP ETF review, available free when you click this link: access the free investment report.
A quick take of the SFY ETF
The SPDR SFY ETF is the only Australian ETF providing exposure to Australia’s top 50 listed companies, by market capitalisation. SFY provides a low-cost way to invest in the ASX’s top 50 companies through a single fund.
With our numbers for Dec 2020, SFY’s FUM stood at $686.77 million. Since the SFY’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 SFY ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.286% for the SFY ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.72.
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 SFY by clicking here?