On the ASX, the VanEck Video Gaming and eSports ETF (ASX: ESPO) and iShares S&P Asia 50 ETF (ASX: IAA) might be worth digging into in 2021.
What to know about the VanEck ESPO ETF
The ESPO ETF invests in the world’s largest companies involved in global video game development, eSports, related hardware, and software by aiming to track the performance of the MVIS Global Video Gaming and eSports Index.
According to our most recent data, the ESPO ETF had $57.51 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.
Keep learning about the ESPO ETF. Click here to access our free ETF review.
The iShares IAA ETF – key points
The iShares IAA ETF provides exposure to the performance of 50 large, established Asian companies listed on the stock exchanges of China, Hong Kong, South Korea, Singapore, Taiwan, and Macau.
With our numbers for December 2020, IAA’s FUM stood at $742.12 million. Since the IAA’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 IAA ETF bad?
iShares, the ETF issuer, charges a yearly management fee of 0.50% for the IAA ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $10.00.
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.
Before rushing out and investing in the IAA fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on IAA.
[ls_content_block id=”4954″ para=”paragraphs”]
