Find out what the ETF does
The ETFS ETPMAG ETF provides investors with access to the precious metal of silver, by seeking to achieve a return equivalent to the movements in the silver spot price, before fees and expenses.
ETPMAG could be used by investors to diversify a portfolio with the precious metal commodity of silver which is typically uncorrelated with other asset classes. In this way, ETPMAG could be used as a hedge against risk – silver, like gold, has been traditionally used as a store of value and a hedge against inflation.
ETPMAG’s FUM meets our hurdle
The ETF Securities ETPMAG ETF had $211.55 million of money invested when we last pulled the monthly numbers. Given ETPMAG’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 Commodities sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Pay attention to yearly costs & fees
ETF Securities charges investors a yearly management fee of 0.49% for the ETPMAG ETF. This means that if you invested $2,000 in ETPMAG for a full year, you could expect to pay management fees of around $9.80.
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.
Our takeaway
If you’re thinking about investing in ETPMAG, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free ETF Securities ETPMAG report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Commodities sector to do a good comparison.
So how can you actually invest in the ETPMAG ETF? In the month of September 2022, you can buy the ETPMAG 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 ETPMAG for free click here to go to Pearler and sign up (hint: it’s also free to get an account).