Investing your money to get exposure to the Commodities sector has never been easier thanks to ASX ETFs like the ETF Securities Physical Silver ETF (ASX: ETPMAG). Before you make an investment, we think it’s important to do your own ETF review. So, here are three tips to get the ball rolling.
1. Find out what the ETPMAG ETF invests in
The ETFS ETPMAG ETF provides investors with access to the precious metal of silver, by seeking to achieve a return equivalent to the movements in the silver spot price, before fees and expenses.
2. Has the ETF reached scale?
The ETF Securities ETPMAG ETF had $219.1 million of money invested when we last pulled the monthly numbers. Given ETPMAG’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 Commodities sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Watch the fees (and other costs)
ETF Securities charges investors a yearly management fee of 0.49% for the ETPMAG ETF. This means that if you invested $2,000 in ETPMAG for a full year, you could expect to pay management fees of around $9.80.
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.
Where to from here in 2020?
So there you have it, three tips to weigh up the ETPMAG ETF. Before you go any further, take a look at our ETF Securities ETPMAG report – it’s free. Then, to make sure you’ve covered all bases, don’t forget to search our complete list of ASX ETFs to compare your options. You can filter the search results according to sector, issuer, size and more.