If you’re considering getting exposure to the Australian shares sector, the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) might be one ASX ETF to watch in May.
How the ATEC ETF fits into an ASX portfolio
The BetaShares ATEC ETF provides exposure to the top Australian technology companies that are listed on the ASX. This is a low-cost way to access the Australian technology sector through a single fund.
The BetaShares ATEC ETF could be used by investors looking to gain specific exposure to Australia’s technology sector. Navigating away from the largest ASX companies removes a lot of the exposure to the financial and resource sectors, and could diversify your Australian portfolio allocation.
ATEC meets our minimum level for FUM
The BetaShares ATEC ETF had $208.38 million of money invested when we last pulled the monthly numbers. Given ATEC’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 Australian 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?
BetaShares charges investors a yearly management fee of 0.48% for the ATEC ETF. This means that if you invested $2,000 in ATEC for a full year, you could expect to pay management fees of around $9.60.
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 BetaShares ATEC 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.