How ASX investors can use the IMPQ ETF
The eInvest IMPQ Fund provides actively-managed exposure to Australian and New Zealand-listed small caps. IMPQ also focuses on investing in companies with positive environmental, social and governance (ESG) outcomes.
IMPQ could be used by investors looking for an actively-managed ETF that invests in small Australian and NZ-listed companies with positive ESG factors. Please note: IMPQ is an ETMF (Exchange-Traded Managed Fund) and does not track an index like a traditional ETF. ETMFs will have a different performance and risk profile, and generally higher management fees, than typical Australian ETFs.
The IMPQ ETF is yet to reach scale
The Perennial Value/eInvest IMPQ ETF had $37.01 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 Perennial Value/eInvest, 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.
IMPQ ETF fees explained
Perennial Value/eInvest charges investors a yearly management fee of 0.99% for the IMPQ ETF. This means that if you invested $2,000 in IMPQ for a full year, you could expect to pay management fees of around $19.80.
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.
Putting it all together
If you’re weighing up investing in IMPQ, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Perennial Value/eInvest IMPQ report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.