In this article, we’ll try to explain why the BetaShares Australia Top 20 Equity Yield Max Fund (Managed Fund) ETF (ASX: YMAX) and VanEck Vectors Gold Miners ETF (ASX: GDX) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the YMAX ETF
The BetaShares YMAX ETF is an actively managed portfolio of Australia’s top 20 blue-chip companies, designed to maximise income by using covered calls.
According to our most recent data, the YMAX ETF had $276.28 million of money invested. With YMAX’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 Australian 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.
Like the look of the YMAX ETF? Grab our ETF free investment report.
The GDX ETF – a quick look for savvy investors
The VanEck GDX ETF gives investors exposure to companies from around the world which are involved primarily in gold mining.
With our numbers for December 2020, GDX’s FUM stood at $377.69 million. Since the GDX’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 GDX ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.53% for the GDX ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $10.60.
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 VanEck GDX 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.