Don’t you wonder if now is the time to start analysing the Switzer Dividend Growth Fund (Managed Fund) ETF (ASX: SWTZ) and Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)? These Exchange-Traded Funds (ETFs) operate in the Australian shares sector, a key sector for diversified portfolios.
Is the SWTZ ETF a good investment? Here’s where you start…
The Switzer SWTZ Fund is an actively-managed fund, with the aim to provide investors with capital growth and a tax-effective income stream.
According to our most recent data, the SWTZ ETF had $80.85 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Get our team’s SWTZ ETF review, available free when you click this link: access the free investment report.
A quick take of the ATEC ETF
The BetaShares ATEC ETF provides exposure to the top Australian technology companies that are listed on the ASX. This is a low-cost way to access the Australian technology sector through a single fund.
With our numbers for Dec 2020, ATEC’s FUM stood at $172.94 million. Since the ATEC’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 ATEC ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.48% for the ATEC ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.60.
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 ATEC by clicking here?