How to research the Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) ETF (ASX:MICH)

You might be sitting back and considering the Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) ETF (ASX: MICH) and thinking that April could be as good of a time as any to take closer look. Here’s how we would start our research.

Find out what the ETF does

The Magellan MICH Fund is an actively-managed portfolio that invests in a select array of international infrastructure companies. The fund typically selects between 20-40 global equities from the infrastructure sector and hedges its exposure against the Australian dollar to manage currency risks.

MICH’s FUM meets our hurdle

The Magellan MICH ETF had $724.35 million of money invested when we last pulled the monthly numbers. Given MICH’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw 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 de-risks the ETF.

Pay attention to yearly costs & fees

Magellan charges investors a yearly management fee of 1.05% for the MICH ETF. This means that if you invested $2,000 in MICH for a full year, you could expect to pay management fees of around $21.00.

For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.

Our takeaway

If you’re thinking about investing in MICH, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free Magellan MICH report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.

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