On the ASX, the ETF Securities EURO STOXX 50 ETF (ASX: ESTX) and ETF Securities Reliance India Nifty 50 ETF (ASX: NDIA) might be worth digging into in 2021.
What to know about the ETF Securities ESTX ETF
The ETFS ESTX ETF provides investors with exposure to 50 blue-chip companies from 12 eurozone countries; namely Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
According to our most recent data, the ESTX ETF had $68.58 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.
Keep learning about the ESTX ETF. Click here to access our free ETF review.
The ETF Securities NDIA ETF – key points
The ETFS NDIA ETF provides investors with exposure to the performance of shares of the largest companies listed on the Indian stock market, based on market capitalisation.
With our numbers for July 2021, NDIA’s FUM stood at $19.54 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 Index sector ETFs, using our full list of ETFs.
Are the fees for the NDIA ETF bad?
ETF Securities, the ETF issuer, charges a yearly management fee of 0.69% for the NDIA ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $13.80.
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.
Before rushing out and investing in the NDIA fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on NDIA.
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