How ASX investors can use the WEMG ETF
WEMG invests in shares of medium and large companies listed on stock markets from approximately 20 emerging markets.
The WEMG ETF could be used by investors who want to take a convenient, simple and diversified approach to investing in shares from emerging markets, such as China, Taiwan, India and Brazil.
The WEMG ETF is yet to reach scale
The SPDR WEMG ETF had $21.16 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as SPDR, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
WEMG ETF fees explained
SPDR charges investors a yearly management fee of 0.65% for the WEMG ETF. This means that if you invested $2,000 in WEMG for a full year, you could expect to pay management fees of around $13.00.
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 WEMG, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free SPDR WEMG report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
