What the Montaka MOGL ETF actually does
The Montaka MOGL Fund is an actively-managed portfolio that invests in a concentrated portfolio of global equities. The fund typically selects between 15-30 global equities and aims to pay a distribution of at least 4.5% per year.
MOGL could be used by investors looking for a concentrated portfolio of global companies, as selected and managed by the investment team at Montaka. According to Montaka, they look for high-quality businesses that are trading at attractive valuations.
Below $100m in FUM
The Montaka MOGL ETF had $58.98 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 Montaka, 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.
Don’t forget MOGL’s fees
Montaka charges investors a yearly management fee of 1.32% for the MOGL ETF. This means that if you invested $2,000 in MOGL for a full year, you could expect to pay management fees of around $26.40.
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.
What to do next
If you’re weighing up investing in the MOGL ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free Montaka MOGL report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
