Don’t you wonder if now is the time to start analysing the Vanguard Global Minimum Volatility Active ETF (Managed Fund) ETF (ASX: VMIN) and ETF Securities Physical Silver ETF (ASX: ETPMAG)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Commodities sectors, respectively.
Is the VMIN ETF a good investment? Here’s where you start…
The Vanguard VMIN Fund is an actively-managed ETF which aims to provide lower volatility than the broader global equity market by investing across many markets and industries.
According to our most recent data, the VMIN ETF had $12.61 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 VMIN ETF review, available free when you click this link: access the free investment report.
A quick take of the ETPMAG ETF
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.
With our numbers for December 2020, ETPMAG’s FUM stood at $219.1 million. Since the ETPMAG’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 ETPMAG ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.49% for the ETPMAG 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.
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 ETPMAG by clicking here?