Don’t you wonder if now is the time to start analysing the SPDR S&P/ASX 50 ETF (ASX: SFY) and VanEck Global Healthcare Leaders ETF (ASX: HLTH)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the Australian shares and International shares sectors, respectively.
Is the SFY ETF a good investment? Here’s where you start…
The SPDR SFY ETF is the only Australian ETF providing exposure to Australia’s top 50 listed companies, by market capitalisation. SFY provides a low-cost way to invest in the ASX’s top 50 companies through a single fund.
According to our most recent data, the SFY ETF had $686.77 million of money invested. With SFY’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.
Get our team’s SFY ETF review, available free when you click this link: access the free investment report.
A quick take of the HLTH ETF
The HLTH ETF invests in shares of international healthcare companies which offer growth ‘at a reasonable price’. Meaning, the ETF aims to invest in shares according to the common GARP methodology.
With our numbers for December 2020, HLTH’s FUM stood at $37.08 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 Growth factor sector ETFs, using our full list of ETFs.
Are the fees for the HLTH ETF bad?
VanEck, the ETF issuer, charges a yearly management fee of 0.45% for the HLTH ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $9.00.
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 HLTH by clicking here?