What’s up with the ETF Securities ACDC ETF (ASX:ACDC)?

If you’re looking for an ASX ETF in the International shares sector, chances are, the ETF Securities Battery Tech & Lithium ETF (ASX: ACDC) is an ETF you’re considering. Here’s what you need to know.

How ASX investors can use the ACDC ETF

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 meets 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 ETF fees 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.

Putting it all together

If you’re weighing up investing in ACDC, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free ETF Securities ACDC report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.

So how can you actually invest in the ACDC ETF? In the month of May 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).

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