It’s time to run a ruler over InvestSMART Intelligent Investor Australian Equity Income Fund (Managed Fund) ETF (ASX: INIF) and SPDR S&P/ASX 200 ETF (ASX: STW). The ETFs invest across the Australian shares sector.
The InvestSMART INIF ETF (ASX:INIF)
The Intelligent Investor INIF Fund is an actively managed ETF, with a focus on a research-led, value investing approach. This fund also focuses on providing investors with exposure to companies with a sustainable income yield.
According to our most recent data, the INIF ETF had $77.34 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the INIF ETF, read our free ETF investment report once you’re done with this article.
SPDR STW ETF (ASX:STW)
The SPDR STW ETF is Australia’s first ETF and has been operating for over 15 years. STW provides exposure to the largest 200 Australian shares, based on market capitalisation. This is a low-cost way to access top Australian companies through a single fund.
With our numbers for December 2021, STW’s FUM stood at $4816.82 million. Since the STW’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.
A look at the STW ETF fee load?
SPDR, the ETF issuer, charges a yearly management fee of 0.0013 for the STW ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $2.60.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free STW ETF report by clicking here.