Don’t you wonder if now is the time to start analysing the SPDR S&P Emerging Markets Fund ETF (ASX: WEMG) and Betashares Australian Sustainability Leaders ETF (ASX: FAIR)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Australian shares sectors, respectively.
Is the WEMG ETF a good investment? Here’s where you start…
WEMG invests in shares of medium and large companies listed on stock markets from approximately 20 emerging markets.
According to our most recent data, the WEMG ETF had $20.79 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.
Get our team’s WEMG ETF review, available free when you click this link: access the free investment report.
A quick take of the FAIR ETF
The BetaShares FAIR ETF provides exposure to the largest Australian shares and focuses on companies which operate ethically. FAIR has been certified by the Responsible Investment Association Australasia (RIAA), as part of the Responsible Investment Certification Program.
With our numbers for December 2020, FAIR’s FUM stood at $815.22 million. Since the FAIR’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 Ethical sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the FAIR ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.49% for the FAIR ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.80.
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 FAIR by clicking here?