In this article, we’ll try to explain why the Betashares S&P/ASX 200 Financials Sector ETF (ASX: QFN) and SPDR S&P Emerging Markets Fund ETF (ASX: WEMG) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the QFN ETF
The BetaShares QFN ETF is a more unique ETF that invests in financial companies from within the ASX 200, while excluding A-REITs. This ETF has a substantial exposure to the ‘Big 4’ Australian banks.
According to our most recent data, the QFN ETF had $40.12 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
Like the look of the QFN ETF? Grab our ETF free investment report.
The WEMG ETF – a quick look for savvy investors
WEMG invests in shares of medium and large companies listed on stock markets from approximately 20 emerging markets.
With our numbers for December 2020, WEMG’s FUM stood at $20.79 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 WEMG ETF bad?
SPDR, the ETF issuer, charges a yearly management fee of 0.65% for the WEMG ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $13.00.
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.
The SPDR WEMG ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.