What the Global X ETPMAG ETF actually 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 meets our minimum FUM criteria
The Global X 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.
Don’t forget ETPMAG’s fees
Global X 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.
What to do next
If you’re weighing up investing in the ETPMAG ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free Global X ETPMAG report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the Commodities sector to compare your options.