Don’t you wonder if now is the time to start analysing the Magellan Airlie Australian Share Fund (Managed Fund) (ASX: AASF) and ETF Securities Physical Gold ETF (ASX: GOLD)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and Commodities sectors, respectively.
Is the AASF ETF a good investment? Here’s where you start…
The Airlie Australian Share Fund invests in 15-35 companies on the Australian stock exchange using a ‘best ideas’ approach to active investing. The fund aims to have no more than 10% of its portfolio in cash. The AASF fund aims to provide long-term capital growth and regular income to their investors.
According to our most recent data, the AASF ETF had $45.54 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 AASF ETF review, available free when you click this link: access the free investment report.
A quick take of the GOLD ETF
The ETFS GOLD ETF provides investors with access to the precious metal of gold, by seeking to achieve a return equivalent to the movements in the gold spot price, before fees and expenses.
With our numbers for December 2020, GOLD’s FUM stood at $2040.75 million. Since the GOLD’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 GOLD ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.40% for the GOLD ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $8.00.
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.
Did you know: you can get our full ETF review of GOLD by clicking here?