Getting exposure to the International shares sector has never been easier thanks to ASX ETFs like the ETF Securities Battery Tech & Lithium ETF (ASX: ACDC). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.
How the ACDC ETF could be used in portfolios
The ETFS ACDC ETF provides investors with passive exposure to the performance of companies involved in battery technology and lithium mining. ACDC adopts an equal weight strategy, meaning that it weights the shares within the portfolio equally – this is different from traditional index fund ETFs which invest more in the largest companies (as determined by market capitalisation).
The ACDC ETF could be used by investors to gain a tactical exposure to the battery technology thematic. ACDC is a global ETF, investing across Asia, the US, Europe and to a minor extent, Australia.
ACDC exceeds our minimum market cap (FUM) criteria
The ETF Securities ACDC ETF had $504.63 million of money invested when we last pulled the monthly numbers. Given ACDC’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.
ACDC’s fees & costs explained
ETF Securities charges investors a yearly management fee of 0.69% for the ACDC ETF. This means that if you invested $2,000 in ACDC for a full year, you could expect to pay management fees of around $13.80.
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.
Bottom line
This is just a quick overview of the ACDC ETF. Before ‘testing the depth of the water with both feet’ so to speak, be sure to read the ACDC ETF’s Product Disclosure Statement (PDS), available on the ETF Securities website, or speak to your financial adviser. For another handy resource, take a look at our ETF Securities ACDC report. You can also use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
So how can you actually invest in the ACDC ETF? In the month of February 2022, you can buy the ACDC ETF and get free brokerage with Pearler. All you have to do is buy and hold the ETF for 12 months! You can invest as little as $500. To buy ACDC for free click here to go to Pearler and sign up (hint: it’s also free to get an account).
