The SPDR S&P/ASX 200 ETF (ASX: STW) could be one to watch in April and in this short article, we’ll run through arguably the three most important factors to consider when you’re reviewing an ASX ETF.
What the SPDR STW ETF actually does
The SPDR STW ETF is Australia’s first ETF and has been operating for over 15 years. STW provides exposure to the largest 200 Australian shares, based on market capitalisation. This is a low-cost way to access top Australian companies through a single fund.
STW meets our minimum FUM criteria
The SPDR STW ETF had $4221.53 million of money invested when we last pulled the monthly numbers. Given STW’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.
Don’t forget STW’s fees
SPDR charges investors a yearly management fee of 0.13% for the STW ETF. This means that if you invested $2,000 in STW for a full year, you could expect to pay management fees of around $2.60.
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.
What to do next
If you’re weighing up investing in the STW ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free SPDR STW report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.