If you’re considering getting exposure to the International shares sector, the Morningstar International Shares Active ETF (Managed Fund) ETF (ASX: MSTR) might be one ASX ETF to watch in December.
How the MSTR ETF fits into an ASX portfolio
The Morningstar MSTR Fund is an actively-managed fund that invests in a select portfolio of international companies for long-term capital growth. The fund hedges its exposure against the Australian dollar to manage currency risks.
MSTR could be used by investors looking for a portfolio of global companies, as selected and managed by the investment team at Morningstar. The focus is on purchasing high-quality businesses that are trading at attractive valuations.
MSTR meets our minimum level for FUM
The Morningstar MSTR ETF had $143.44 million of money invested when we last pulled the monthly numbers. Given MSTR’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 International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
Morningstar charges investors a yearly management fee of 0.39% for the MSTR ETF. This means that if you invested $2,000 in MSTR for a full year, you could expect to pay management fees of around $7.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our Morningstar MSTR report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
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