Don’t you wonder if now is the time to start analysing the iShares Core MSCI World All Cap AUD Hedged ETF (ASX: IHWL) and ETF Securities ROBO Global Robotics and Automation ETF (ASX: ROBO)? These Exchange-Traded Funds (ETFs) operate in the International shares sector, a key sector for diversified portfolios.
Is the IHWL ETF a good investment? Here’s where you start…
The iShares IHWL ETF provides investors with exposure to a diversified portfolio of global companies. This is a low-cost way to access a variety of global companies through a single fund.
According to our most recent data, the IHWL ETF had $245.46 million of money invested. With IHWL’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 IHWL ETF review, available free when you click this link: access the free investment report.
A quick take of the ROBO ETF
The ETFS ROBO ETF provides investors with exposure to the global value chain of robotics, automation and artificial intelligence (RAAI) related companies. Some investors consider RAAI-related companies as disruptors to industries across the globe and thus, a ‘thematic’ or ‘megatrend’ to invest in.
With our numbers for December 2020, ROBO’s FUM stood at $185.3 million. Since the ROBO’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 ROBO ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.69% for the ROBO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $13.80.
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 ROBO by clicking here?