Is the SSO ETF a good investment? Here’s where you start…
The SPDR SSO ETF provides exposure to a diversified portfolio of Australian companies and tracks the S&P/ASX Small Ordinaries Index. SSO is designed to capture the performance of the top 200 Australian small companies based on market cap, ranking from 101 to 300.
According to our most recent data, the SSO ETF had $32.85 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.
Get our team’s SSO ETF review, available free when you click this link: access the free investment report.
A quick take of the GOAT ETF
The GOAT ETF tracks the performance of the Morningstar Developed Markets ex-Australia Wide Moat Focus Index. The index invests in 50 to 100 ‘wide moat’ companies, as defined by Morningstar, whose competitive advantages will provide excess returns for 20 years or more.
With our numbers for December 2021, GOAT’s FUM stood at $25.66 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Quality factor sector ETFs, using our full list of ETFs.
A look at the GOAT ETF fee load?
VanEck, the ETF issuer, charges a yearly management fee of 0.55% for the GOAT ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $11.00.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Did you know: you can get our full ETF review of GOAT by clicking here?
So how can you actually invest the GOAT ETF? By getting a free brokerage account with Pearler. If you join Pearler in the month of Aug 2022, with your free Pearler account you can buy the GOAT ETF and pay $0 in brokerage fees. All you have to do is buy and hold the ETF for 12 months.
You can invest as little as $500 in the GOAT ETF to take-up this offer. Sounds pretty good, right? To invest in GOAT for $0 brokerage, simply click here to visit Pearler’s website and sign up.
