Like us, you might have noticed the SPDR S&P/ASX 200 Financials ex A-REITs Fund ETF (ASX: OZF) and think that now could be a good time to consider taking a closer look. Here’s what ETF investors need to know.
1. What does the OZF ETF do for investors?
The SPDR OZF ETF is a more unique ETF that invests in financial companies from within the ASX 200, while excluding A-REITs and other real-estate and development related companies.
2. Funds under management (FUM)
The SPDR OZF ETF had $110.34 million of money invested when we last pulled the monthly numbers. Given OZF’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Don’t forget about the fees & costs
SPDR charges investors a yearly management fee of 0.40% for the OZF ETF. This means that if you invested $2,000 in OZF for a full year, you could expect to pay management fees of around $8.00.
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.
These are just a few of the considerations or factors you would need to look at when running the rule over the OZF ETF. Before you go any further, take a look at our free SPDR OZF report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.