Don’t you wonder if now is the time to start analysing the iShares MSCI Emerging Markets ETF (ASX: IEM) and Betashares S&P/ASX 200 Resources Sector ETF (ASX: QRE)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Australian shares sectors, respectively.
Is the IEM ETF a good investment? Here’s where you start…
The iShares IEM ETF provides investors with exposure to a portfolio of over 800 companies from emerging markets, like China, India and Brazil.
According to our most recent data, the IEM ETF had $865.29 million of money invested. With IEM’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws 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 lowers the chance that the ETF issuer will close the ETF.
Get our team’s IEM ETF review, available free when you click this link: access the free investment report.
A quick take of the QRE ETF
The BetaShares QRE ETF provides a targeted exposure to some of the largest companies in the Australian resources sector and aims to track the Solactive Australia Resources Sector Index.
With our numbers for December 2020, QRE’s FUM stood at $79.29 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Index sector ETFs, using our full list of ETFs.
Are the fees for the QRE ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.34% for the QRE ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $6.80.
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 QRE by clicking here?