It’s time to run a ruler over ETF Securities Physical Palladium ETF (ASX: ETPMPD) and Montaka Global Equities Fund (Managed Fund) ETF (ASX: MOGL). The ETFs invest in the Commodities and International shares sectors/industries, respectively.
The ETF Securities ETPMPD ETF (ASX:ETPMPD)
The ETFS ETPMPM ETF provides investors with access to the precious metal of palladium, by seeking to achieve a return equivalent to the movements in the palladium spot price, before fees and expenses. Palladium comes from the same family of metals as platinum and is used in many electronic and industrial products, particularly in the automotive industry.
According to our most recent data, the ETPMPD ETF had $9 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.
To learn more about the ETPMPD ETF, read our free ETF investment report once you’re done with this article.
Montaka MOGL ETF (ASX:MOGL)
The Montaka MOGL Fund is an actively-managed portfolio that invests in a concentrated portfolio of global equities. The fund typically selects between 15-30 global equities and aims to pay a distribution of at least 4.5% per year.
With our numbers for December 2020, MOGL’s FUM stood at $83.38 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 Active ETF (e.g. ETMF) sector ETFs, using our full list of ETFs.
Are the fees for the MOGL ETF bad?
Montaka, the ETF issuer, charges a yearly management fee of 1.32% for the MOGL ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $26.40.
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 that you get access to our free investment report on Best ETFs Australia? View the free MOGL ETF report by clicking here.