Don’t you wonder if now is the time to start analysing the VanEck Vectors Gold Miners ETF (ASX: GDX) and Betashares FTSE RAFI Australia 200 ETF (ASX: QOZ)? These Exchange-Traded Funds (ETFs) aim to provide exposure to the International shares and Australian shares sectors, respectively.
Is the GDX ETF a good investment? Here’s where you start…
The VanEck GDX ETF gives investors exposure to companies from around the world which are involved primarily in gold mining.
According to our most recent data, the GDX ETF had $453.8 million of money invested. With GDX’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 International 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 GDX ETF review, available free when you click this link: access the free investment report.
A quick take of the QOZ ETF
The BetaShares QOZ ETF provides exposure to a ‘fundamentally weighted’ index of 200 large Australian shares. This ETF focuses on weighting the portfolio with a focus on ‘economic importance’ rather than market capitalisation, while also aiming to outperform traditional market-cap weighted indices.
With our numbers for July 2021, QOZ’s FUM stood at $368.22 million. Since the QOZ’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 QOZ ETF bad?
Betashares, the ETF issuer, charges a yearly management fee of 0.40% for the QOZ 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 QOZ by clicking here?
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